Security is a crucial factor you have to consider when choosing an application for crypto payments and transfers as they deal with sensitive financial data and transactions that are attractive to hackers, thieves, and scammers.
In this article we’ll discuss all things security, and some ways that can help you keep your digital assets safe.
Why Is Security Important in Crypto Platforms?
Crypto apps and platforms must have strong security measures because crypto transactions aren’t as regulated or protected as traditional banking systems. Therefore, if a hacker gets their hands on your private key or wallet, they can steal all your assets without any recourse. Not to mention that crypto transactions happen online, which can make them vulnerable to cyberattacks.
What Security Measures Should Crypto Platforms Have?
Some of the security measures a reliable crypto platform must have include:
1. Authentication mechanisms
Authentication mechanisms like two-factor authentication (2FA) strengthen the security of your account and makes it far more difficult for someone to access it without your consent.
Usually, you have to create a username and password when signing up for an account in a crypto platform. However, there are situations when a password alone isn’t enough to protect your account, considering that hackers can access it or steal your password using different techniques.
With 2FA, you’ll need to provide a second piece of information, such as a code given to your phone or email address, in addition to your password, adding another layer of security into your account.
2. Regular software updates
By conducting regular software updates, crypto platforms can help keep their product secure and protected against bugs or vulnerabilities that may allow attackers to bypass security measures, or steal funds and personal information.
3. Strong encryption techniques
Encryption is the process of converting your data into a secret code that can only be decoded with the right key, protecting your assets and personal information against unauthorized access. In the case of crypto platforms, this means encrypting all communication and data storage, including your login credentials, transaction data, and personal information.
With strong encryption techniques, even if an attacker was able to intercept your data, they won’t be able to read or use it without the right key for decryption.
4. Security audits
Security audits are essential because crypto transactions involve large amounts of money, and any security issue or vulnerability could result in a loss of funds. A security audit can help identify potential vulnerabilities in the platform’s code, infrastructure, or operations, and provide recommendations for improving its security.
5. Know Your Customer (KYC) checks
KYC is an identity verification process that aims to prevent money laundering, fraud, and other illegal financial activities. By requiring KYC, crypto platforms can determine whether a user is legitimate or not, and is not using the platform for criminal activities.
KYC can also help with customer support and dispute resolution, as the platform can quickly and easily verify a user’s identity in the event of an issue or dispute.
6. Secure storage of private keys
Crypto platforms must securely store private keys because these secret codes grant access to a user’s cryptocurrency holdings. Private keys are used to sign and verify transactions. And unlike traditional passwords, private keys cannot be recovered or reset if lost. Therefore, if you lose your private key, you will permanently lose access to these funds.
How to Keep Your Cryptocurrencies Safe
Here’s how you can keep your crypto assets safe for the long-term:
1. Use a secure crypto wallet or platform (e.g., the Kasta app).
2. Back up your private keys in hardware, and keep it in a secure location.
3. Use strong, unique passwords that are hard to guess.
4. Update your crypto app or platform regularly.
5. Keep an eye on phishing scams.
The Bottom Line
Being proactive in securing your cryptocurrencies is crucial in achieving your financial goals, and making the most of your assets. Make sure to choose a platform that has strong security measures against unauthorized access, theft, or loss.
At the same time, you must keep in mind the abovementioned ways you can keep your crypto safe, such as using strong passwords, storing your private keys in a safe place, and more.
