Because it’s so hard to trace, crypto investment and credit card fraud often go hand in hand. According to some statistics, about 3% of all crypto transactions are credit card fraud attempts, which is an alarming rate.
Since crypto transactions are becoming increasingly common, this stat is becoming more alarming each year. However, it’s undeniable that crypto is here to stay. So, instead of brooding over these high fraud figures, you must learn how to protect yourself.
So, how does one protect their credit card and safely trade and invest in crypto? Here’s what you need to know on this subject matter.
1. Protect your crypto wallet
First, it’s worth pointing out that not all crypto wallet providers are the same. The best you can do is research several most reputable providers and compare them. It’s also vital that you set your priorities straight.
- Some wallets are great for beginners.
- Others provide an amazing experience for mobile users.
- There are those that give incredible advanced features for seasoned users.
Just remember that while these things are important, security reigns supreme. While this doesn’t mean you should ignore factors like mobile-friendliness, the safety of your funds and assets is what it’s all about.
Also, keep in mind that cryptocurrencies are decentralized finance. While this is opportune, the truth is that it’s more risky and speculative by its very nature.
Most importantly, what goes for any other account, goes for a crypto wallet, as well. You wouldn’t give your credit card’s PIN to a random person, so why would you act differently with your crypto wallet? Come up with a strong password and change it regularly.
2. Be careful when you buy and use crypto
Buying cryptocurrency is an investment, and there’s no such thing as a safe investment. However, it’s one thing to lose money because the assets you’ve just purchased lost value, and something completely different to be scammed while buying.
Crypto doesn’t have security features in a traditional sense. This problem exists because many people draw conclusions about crypto payment from their credit card experience. If you lose money to a scam, there’s virtually no way of getting it back.
Crypto was made to be hard to be traced, and this feature has its downsides, as well. Some might even argue that this is why crypto scams are so common.
Also, you can’t take back a transaction made with cryptocurrency. In other words, the time to be careful is before you buy since there’s likely no going back.
You need to be just as careful when choosing methods to invest in crypto.
How to safely buy Bitcoin with Apple Pay?
3. Learn about cookies and cybersecurity
Sites use cookies to store the personal information of their users. This way, brands learn about their users and can provide them with a customized experience.
Since they’re a significant concern for one’s privacy, the users are asked to agree to cookies upon entering the site for the first time. The cookie consent policy is so detrimental to transparency between the user and the site. Disclosing that you use cookies is just the first step. You also want to provide your users with a chance to provide consent. This is usually done with a consent-building tool.
The problem is that a malicious third party may use these cookies to impersonate you or even collect your personal data. They may access your accounts, steal passwords, or even steal credit card and crypto wallet information stored on your browser.
There are several ways to protect yourself from these threats.
- First of all, whether you trust the site or not. You don’t have to agree to anything. You can just leave the site and find what you’re looking for someplace else.
- Second, you can update your anti-malware software. If there is a way to abuse one of these cookies, the threat will be discovered and eliminated in time.
- Third, you can rely on browser add-ons that disable cookie tracers. Just remember you can’t trust all of these add-ons. Also, keep in mind that not all of these cookies are bad. Most of them are responsible for the personalized browsing experience you’re so attached to.
- Fourth, it might be worth your while to deactivate the storage of cookies from time to time.
A regular user seldom even takes time to think about cookies. However, this lapse of attention/judgment is unacceptable for someone who trades online.
4. Always go for multi-factor authentication
Having two locks is always more secure than having just one. Sure, it takes double the time to unlock and open the safe, but it’s always worth it. This is precisely what multi-factor authentication can provide.
Another reason some institutions are not using multi-factor authentication is that it also increases costs. Still, premium security always costs more. Clients, however, are quickly coming to recognize this. In a way, this allows them to recognize parties that are skimping on data security.
For instance, even if they discover your password (which is the most exposed of all your information), they might still need to get a confirmation code via SMS. Without it, they won’t be able to access your account/wallet, and your funds/information will be safe.
5. Apply common sense
While this advice may sound condescending and abstract, it’s no less accurate. You see, if someone is demanding a cryptocurrency payment in advance without even considering another payment method, chances are that they’re scamming you.
When it comes to investments, if they’re promising “guaranteed” returns or massive profit, they’re likely up to no good. Like in any other field, when people offer you a chance to make a fortune in days or weeks, this is probably a scam.
One of the tricks that many people fall for is sharing information with people they’ve met on dating sites. We cannot stress enough just how dangerous this is. Sure, dating apps are how you romance people in the 21st century, but it doesn’t make it less dangerous. Just as people are scamming their romantic partners in traditional dating, this also happens online.
So, don’t share financial information with someone you’ve just met on a dating app. Also, don’t take their investment advice. While there is a chance that they’re speaking the truth, this chance is not that high, and the risks are considerable.
Investment managers that contact you out of the blue are one of the most suspicious things in the world. The same goes for investment managers who send you a lucrative offer “by accident.” Again, these scams are much older than electronic transactions but still active.
Knowing anything about phishing will make you more resilient to crypto and financial threats. So, double-check and triple-check the URL before you do any business with them.
You must be extra careful when buying and investing in crypto
While you shouldn’t avoid cryptocurrencies, you must be extra cautious when dealing with them. Always keep in the back of your mind how hard they are to trace and understand that a mistake with crypto transactions is possibly irreversible. So, check and double-check everything before proceeding, protect yourself online, and always choose the safest methods.
By Srdjan Gombar
Veteran content writer, published author, and amateur boxer. Srdjan is a Bachelor of Arts in English Language & Literature and is passionate about technology, pop culture, and self-improvement. His free time he spends reading, watching movies, and playing Super Mario Bros. with his son.