Have you ever shopped using cryptocurrency? A cashless transaction always comes in handy. Just walk up to the billing counter, brandish your crypto details and be done with it. More and more stores and websites are implementing crypto payment for users’ flexibility.
Well, every coin has two sides, isn’t it! Likewise, shopping with crypto has its own shortcomings. Ever since cryptocurrency has risen to popularity, the no. of frauds or scams against them has gained a lot of momentum. Every other day we come across some mishap regarding them.
So, in these circumstances, how can we protect our personal data during shopping with crypto? Let’s find out.
Before diving in understanding the preventive measures, let me walk you through what is personal identity and how it can be compromised.
As a factual identity like driving license, citizenship card, etc. is required to verify one’s identity. In a similar manner, a digital identity is a must and should for an online transaction. These identity documents assist in avoiding money laundering and other scams. Now, as we know, these details are stored on a centralized database to access when required. However, what if this centralized database, that we put much faith into, is compromised? What if a hacker gets his hands on these details that include our personal ID, bank details, etc? Just imagine the level of ruckus this hacker can create.
It is always better to take extra care of your digital identity. In the coming section, I’ll list down few basic methods that you can consider –
Maintaining Your Cyber Hygiene –
Now, when I talk about cyber hygiene, I’m pointing to basic things like having a secure password for each account, storing the password and other details in a safe and secure device, etc. Keep on checking your cyber health regularly to see whether it is compromised. It so happens that we sometimes lose track of some accounts in the day-to-day chores and then it becomes difficult to retain any lost data. Cyber experts advise to change important passwords on a regular basis, divide and store key-phrases of crypto in different locations, etc.
Store Cryptocurrencies onto a Secure Wallet
Choosing the right type of wallet among software, hardware, paper and online for your cryptocurrencies is very essential. I would advise against online wallets as these wallets are more susceptible to online frauds. Once you select a wallet, make sure to enable two-factor authentication to every account.
Data Encryption adds an extra layer of security
Storing any data online comes with its own woes. Cyber experts prefer encrypted data to be stored online. It creates a barrier of sort between your data and the one trying to steal it.
Blockchain is great to protect Digital Identity –
Instead of storing the digital identity on a centralized location, make use of blockchain solutions to protect the identity.
VPN Secures Online Identity –
Cryptocurrency transactions are not completely secure and anonymous. Using a Virtual Private Network will hide your IP address, encrypt your transaction data; thus making it harder to intercept.
Use a Crypto Tumbler –
Another brain-child of the crypto sphere is the crypto tumbler. It is a cryptocurrency mixing service used to obscure the trail back to the fund’s original source. Crypto Tumblers like Bitcoin Mixer improve the anonymity of cryptocurrencies using algorithms and thus secure your identity. In turn, the crypto tumblers charge a minimum of 1-3% of a transaction fee to combat money laundering and such online frauds.
Though not exhaustive, this list is an essential starting point. Implement these tips to protect your money and identity as you get started with cryptocurrency. Already been trading or mining for a while? Be sure to regularly revisit your cyber hygiene and update those passwords if it’s been a while. Good luck out there!