How Secure is Your Cryptocurrency Portfolio? – Finance Magnates

Many investors and cryptocurrency users consider Bitcoin, and other digital assets, the future of finance. But as they become increasingly popular, they are more likely to be targeted by cybercriminals.

There are many reasons why these virtual currencies have gained acceptance in the trading and financial industries. Most importantly, there is no need for third-party intermediaries. Blockchain, the technology underpinning the system, enables users to send and receive funds instantly without the intervention of a middleman.

No government or central bank controls cryptocurrencies, as they are totally decentralized. Despite this, several governments around the world, most notably Japan, have recognized Bitcoin as a legal method of payment. Russia banned Bitcoin in 2014, but the country now seems to be reconsidering its position on regulation, according to Alexey Moiseev, the Deputy Finance Minister of the Russian Federation.

Haim Toledano, a specialist on the capital market and decentralization technologies explains that the lack of regulation and the current uncertain legal status of cryptocurrencies presents a golden opportunity for cybercriminals. Numerous authorities are aiming to regulate the use of Bitcoin, Ethereum and other digital currencies and develop legal frameworks to protect users. In the meantime, however, cybercriminals continue to exploit the unwary.

According to Tyler Moore, Assistant Professor of Cyber Security at the University of Tulsas Tandy School of Computer Science, it is difficult to protect Bitcoin owners from hackers: I am sceptical theres going to be any technological silver bullet thats going to solve security breach problems. No technology, cryptocurrency, or financial mechanism can be made safe from hacks.

The U.S. Department of Homeland Security funded a study conducted by Moore, showing that between 2009 and March 2015, 33% of operational Bitcoin exchanges were hacked. There are several ways to protect your cryptocurrency accounts from cybercriminals. Haim Toledano recommends the best steps to take

Taking these steps will protect you from cyberattacks to a certain extent, but serious cryptocurrency traders should stay up to date with emerging threats by regularly visiting specialist online forums.

Its impossible to guarantee total protection of your digital assets, but this shouldnt deter you from entering the exciting world of cryptocurrency trading. Just make sure to take the necessary precautions to safeguard your portfolio.

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How Secure is Your Cryptocurrency Portfolio? - Finance Magnates