How to Secure Your Crypto Transactions?
4 min readJun 17, 2020

In recent years cryptocurrencies found their place among other financial assets within customers wallets all over the world. However, the security of crypto transactions remains the main concern for the people involved in them. The customers suffer from scammers of various kinds. Hackers steal personal data in every transaction, taking into account the vulnerability of crypto wallets. This market inefficiency led to the development of anonymous crypto exchanges like GoDex to guarantee a safe crypto exchange.

Why do you have to secure modern crypto transactions?

These days cryptocurrency again experiences the rise in popularity as more and more people seek the opportunity to keep their incomes secret and more companies want to guarantee the security of their transactions through the blockchain. In this respect, it is more important than ever to keep the wallets safe from the targeted attacks. As you understand the growing demand for crypto transactions attract hackers all over the world. Unfortunately, many people do not care much about the protection of their crypto funds and lose their funds forever.

Let’s dive into some statistics on crypto exchange security.

The two hundred billion market is incapable of offering safe crypto wallets to investors, according to the latest report from ICORating, researching 100 exchanges with more than $100 million turnovers. Indeed, the report indicated that numerous exchanges even fail to offer basic security measures such as eight-digit passwords.

The research showed that 54% of the world crypto exchanges are not secure in at least one area. This document identified the outstanding sources of data leakage in all crypto exchanges:

  1. Traders can create passwords with fewer than eight symbols in 41 percent of exchanges
  2. Users can create a password with either digits or letters alone in 37 percent of exchanges
  3. Email verification is not necessary for 5 percent of exchanges
  4. Only 46 percent of exchanges meet all three above parameters
  5. Only 4 percent of exchanges have been using best practices for domain security

This report clearly recommends investors to pay specific attention to the security of funds at the selections of crypto exchange platforms and during their cryptocurrency settings.

What are the dangers of crypto transactions?

For people who closely follow the crypto news, the list of crimes is indeed long. They range from shady dealings to spoofs that target those with the coins. Here are some of the terms you need to know and that will help you remained informed. How many of these do you know?

  • Social engineering: This is a general term used to denote a criminal fooling the target to get some advantage such as revealing the private keys. Since it is used as a means to an end, it is taken as a preface to other more serious criminal activities such as cryptojacking.
  • Phishing: This involves the criminal presenting the target with the false pretext of a company, individual, organization, or even government agency to prompt them to take action such as opening a malware. In the crypto niche, the phishing attacks end up into wallet break-ins or ransomware that involve stealing the user’s private keys.
  • Cryptojacking: The criminal tactic, in this case, lies in the redirection of individual resources to other accounts without proper permission. This approach is used in the crypto industry to divert mining resources of the target’s computer to mine cryptocurrencies.
  • Breaking into online wallets and vaults of the exchanges: This tactic presumes the application of false identities for approaching the user’s private information.
  • Malvertising: This name tells the entire story. In this tactic, the criminals use malicious ads to spread malware to targeted clients. The criminals target compromising web browsers and their plug-ins.
  • ICO exit scams: This method has become very common resulting in the banning of many ICOs in some countries. It involves establishing an ICO, publicizing it, and persuading investors to buy the tokens. The scammers even reward the buyers who refer new clients. Then, they run away with the investors’ money. This is the standard form of an ICO scam.
  • Poisoned website: This term is used to denote a site that criminals use to deliver malware. The malware is mainly carried as an ad.
  • Phone porting: This attack method is a combination of hacking, phishing, and outright breaking into a target wallet. The hackers’ snoop in various places such as crypto-related conversion platforms, social media, and other platforms where investors post their details such as email and phone numbers. Once the scammers have all the information about you, they pose as victims, call the phone provider, and persuade the customer support to transfer the number to a device they control. Once the hackers have taken control over your number, they sign in to your cryptocurrency exchange account, compromise the password, use the phone number for the second-factor authentication, and siphon away the coins.

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