Cryptocurrencies nowadays are not something unknown and exotic. It is already used not only by advanced IT specialists in large cities, but also by ordinary residents of small towns and villages.
But still, digital currency turns many people off from using, taking into account the possible risks of losing money. In this article, we list the main risks and consider ways to protect yourself from them.
The first thing that comes to mind when considering possible risks is a complete loss of access to your money . Whether it's an exchange or even a special wallet, no user is immune from forgetting a password or losing a key. Resource administrators who provide access to the cryptocurrency market, as a rule, warn about such a situation. But it is worth noting that some portals, such as BANKOFF.PRO, list simple tricks that will save your money. It is about creation of copy of key or password in several independent storage locations, such as:
- memory card.
Reserving a password or key is a basic event, but it will not save you from theft . Cryptocurrency is also stolen, as well as fiat money, especially in poorly protected exchanges. When studying ways to protect against hackers and malware, cybersecurity experts allocate the following means:
- software update system;
- antivirus software;
- automatic security analysis tools;
- heuristic traffic analysis;
- DDoS protection
Since the cost of building a defense-in-depth for service is not a cheap task and many exchangers neglect this. The number of portals that have the full range of protection is small, but the BANKOFF.PRO exchange is one of them.
With the help of cybersecurity tools, we eliminate all risks coming from outside, but nobody's canceled bankruptcy and closure, the risks inside the service.
Let 's list the most famous and biggest exchange crashes:
- BitGrail, users lost 17 million XRB/Nano;
- BTC-e which took 485 thousand ETHto the grave;
- Coincheck 523 millionNEM was stolen;
- Bitfinex 120 thousandBTCmissing;
- Mt.Gox 850 thousand;BTC;disappeared.
As you can see, both large and small exchanges are subject to bankruptcy and crash. One of the ways to minimize the risk associated with such an event is to trust proven services that are located in Russia and have representative offices in large cities, for example, an office in Moscow.
It seems that nothing bad can happen. Imagine that money has already been deposited in the exchange and the exchange meets all security requirements. Cryptocurrency has been purchased and passwords are stored in a safe place. But one day something terrible happens in the world and it causes a drop in the quotes of your cryptocurrency. You lose money, the investment portfolio turns red and your eyes are looking for the sell button on the screen.
Remember, any financial assets are subject to volatility, price changes in a certain range, some more, some less, that's the whole point.
When registering, the BANKOFF.PRO exchange, like all serious services, informs customers in detail about this. There is nothing terrible in the drop of the quotes. Use the principles of diversification, buy in small lots by laddering for a long period of time and not at the all-time peaks.
Now all the dangers are definitely foreseen and there is nothing to be afraid of, but let's talk about the risk of an erroneous payment or transfer.
Any wallet or account on the exchange has a long name in the form of a set of numbers in which you can get confused and make a mistake in the translation.
It is worth choosing services in which the translation system is as simple as possible and you only need to enter a phone number, full name and email for the report. In case of an error, the service will inform you about it. And do not forget about the round-the-clock customer support, which will help solve the problem that arose due to a user error when entering data.
Finally, you need to study the legal aspect in assessing the risks of cryptocurrency transactions. In Russia, the Law 259-FZ "On Digital Financial Assets, Digital Currency" came into force from January 1, 2021, which laid the foundation of the digital asset industry in our country. Currently, the government is considering a bill to regulate the cryptocurrency market.
In modern society, there is a growing trend to put cryptocurrencies into public circulation in order to pay with them in shops, hairdressers, car repair shops. If you are still afraid to use electronic money, then now is the best time to try, because the fiat money we are used to has much more risks associated with limiting circulation and controlling all transactions.