How Safe Are Your Crypto Investments? – GOBankingRates

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Bitcoin and its cryptocurrency brethren have been all the rage in 2021, and record numbers of investors are now getting caught up in the excitement. And while the critics do raise plenty of interesting questions about the long-term viability of crypto, there’s no denying that vast fortunes have been made by some. One of the areas of crypto investing that has mostly been overlooked, however, is the risk of owning crypto investments — not the risk of capital loss, which has been much discussed, but rather the risk of being duped, scammed or outright robbed of your investment. Here’s a look at some of the most prominent cyber risks to investing in cryptocurrency.

Learn More: How Does Cryptocurrency Work – and Is It Safe?
Also See: Breaking Down the Basics of Cryptocurrency

Crypto Theft

Cryptocurrency isn’t a tangible item, like a dollar bill. It only exists in the virtual world. As such, it’s vulnerable to theft in any number of ways, just like your online bank account. While the chance that any one specific person will fall prey to crypto theft may be small, the crime is rising dramatically on the whole.

According to Crystal Blockchain Analytics, from January 2011 to December 2021, $3.18 billion was stolen through security breaches, and $1.76 billion through DeFi hacks. For the most part, cryptocurrency assets held in crypto wallets are highly secure. They can only be accessed through private keys, known only to the owner. These keys are strings of letters and numbers similar to passwords. But as with any type of password system, hackers have clever ways to break into your private wallet. Here are a few of the most common.

Phishing

Phishing attacks come in a number of forms. One common method hackers use is creating websites that look nearly identical to ones you are familiar with so that you’ll click on them. For example, if you check your crypto account at a fictional site like “cryptocurrencyholdings.com,” hackers might create a similar looking site at “cryptocurrencyholding.com,” dropping the “s.” Other forms of this attack include fake Google ads that look like legitimate crypto wallet sites. If you’re not wary, you might enter your crypto credentials or other vital information on the hacker’s website.

Another common phishing play is if you receive a notification from a legitimate-looking website asking you to update your login information or password for security reasons. If you click on the link, it takes you to a hacker’s site where they can steal your information and get access to your crypto.

See: 10 Cheap Cryptocurrencies To Buy