An Introduction to Cryptocurrency Investing & Trading
The Importance of Security
Buying & Selling Cryptocurrency
Storing Cryptocurrency
Sending Cryptocurrency

Lesson Summary 006

Cryptocurrency owners are strongly encouraged to learn the basics of online security. Due to the decentralised nature of blockchain technology, there is typically no recourse available when you make a security mistake. You are fully responsible for securing your seed phrases. Once you lose your cryptocurrency, you’re almost guaranteed to never get it back.

Listed below are some particularly important online security tips.

  • Limit the amount of personal information that is publicly visible online.
  • Never share your private keys or seed phrase.
  • Download a reputable anti-malware program.
  • Create unique passwords using a password manager.
  • Avoid using public Wi-Fi where possible.
  • Be careful when downloading software and clicking links.

A password manager is software which lets you encrypt sensitive information, making it significantly harder to steal. An example of a password manager is 1Password. Most password managers are desktop- or cloud-based.

VPNs encrypt your internet connection by establishing a private tunnel, helping keep your data private and secure by hiding your IP address. Usually created by software installed on your computer or mobile device. You must trust the VPN service provider with your data as they have some ability to read your network traffic.

Phishing is a cyber-attack method designed to steal sensitive data. It is typically carried out via email, instant messaging apps or telephone. Victims are commonly instructed to enter personal details on a fake copy of a legitimate website. Ways to identify phishing attacks include scrutinising the sender’s email address and the grammar of the email.

2FA is a security method which adds a layer of protection to your online accounts. To enable 2FA, you must first download an authenticator app or buy a hardware-based security key. Examples of authenticator apps and devices include Authy, Google Authenticator and Yubikey.