Importance of Privacy While Trading Crypto Online
At the start of 2021, the number of active internet users worldwide hit 4.66 billion globally. That’s more than half of the world’s population online regularly. However, internet users weren’t the only metric that increased in number this year. The cryptocurrency industry has witnessed the biggest increase in its user base ever, with around 300 million crypto investors online.
Online privacy has always been a major concern since the dawn of the Internet which also brings us to the topic of cryptocurrency privacy. While we all may enjoy the crazy price jumps, memes, and utility of digital currencies, it’s far more important to understand the value of privacy when trading crypto online.
Behind the scenes of the Internet
To understand the importance of cryptocurrency privacy, you need to be aware of the current state of users of the Internet.
For many of us, using the Internet is nothing more than a search, videos, images, basically solutions to our queries. Companies that provide these solutions, however, have changed the way they once operated, leaving us in a wormhole of monetizing the time we spend on their platforms.
Firms slowly (and sneakingly) changed the analogy of human query-to-solution to human query-to-applications. This means you’re more bound to be satisfied using a platform to find a solution rather than acquiring the solution itself.
Using social media platforms for long hours has become a norm, especially in the youth worldwide. The algorithms on websites and applications can (and do) monitor your every like, dislike, agreement, time spent on every post/page and thought process with each use. More time spent means more data fed into the algorithm.
This has allowed firms to know us better than we know ourselves. We can only imagine what may happen if these platforms sell off our private data or get their servers hacked.
How Online Fraudsters Can Harm Traders
Cryptocurrency and blockchain have grabbed the attention of not only individuals or crypto enthusiasts but also several retail and institutional investors. Regardless, cryptocurrency’s lucrative market has also been attracting fraudsters, the same way it initially attracted investors.
As mentioned earlier, platforms come up with subtle tricks that make users stay for longer. How do fake crypto exchanges succeed here? Simple, just mimic the popular and trusted ones.
Here’s an example to get a better hold of the topic. In May of this year, a press release issued stated that over 167 fake exchanges duped investors off their money. The targets were spread across Asia with India being on the list too. These exchanges lured investors through simply chatting (making users spend more time) and after a while, convincing them to buy another (fake) app.
These exchanges stole the personal information of investors through their KYC process and gained access to their data. Further, the exchanges also tricked users into depositing money to an International bank by pretending the whole process was a simple crypto transaction.
Giving out your personal sensitive data to fake exchanges through KYC can enable these platforms to use your personal data to conduct illegal payments and scams even if you weren’t involved in them.
Ways to Enhance Cryptocurrency Privacy as a Trader
Choose trusted exchanges
As mentioned above, many websites monitor your data to the very last detail. This makes it extremely important to select a trustworthy exchange like Giottus. Exchanges require official identity documents of their users for KYC verification, making it compulsory for us to research thoroughly before selecting an exchange to prevent misuse of your personal information.
Another strong way to protect your personal crypto assets is by using crypto wallets efficiently. These wallets are of two types namely-
It is an online mode of storage that requires an Internet connection. It’s easy to access and is secured via passwords. It’s recommended to use hot wallets for keeping some of your assets specifically for trading purposes.
It is an offline mode of storage that is kept in devices like pen drives. It requires a long procedure to access cryptocurrencies. This mode of wallet is best to store the majority of a user’s crypto away from online hackers.
Both these storage options have their role in keeping a user’s digital assets safe in one place.
Use 2FA and Strong Passwords
Another simple tip to add an extra layer of security to cryptocurrency privacy is using 2 Factor Authentication and strong passwords. For digital wallets online, creating a strong password is a must to stay safe from hackers.
Wrapping up, it is vital for all investors to understand the importance that privacy holds while trading crypto online along with the best methods to stay secure. In addition to this, users can also use a separate device just for cryptocurrency trading and be updated with Giottus to learn more about cryptocurrency privacy.