You hear it over and over again. Another hack, another couple million of dollars of cryptocurrency stolen weakening cryptocurrency's legitimacy as a whole. As more and more people start to use this next generation of currency more government controls will be implemented which in a way will be a really good thing but until that happens it really is a case of every man for himself in the wild west of 'Cryptoland'. Here are a few must follow guidelines on using cryptocurrency.
People's money is targeted for fraud, thieves, and con-artists.
1. Watch out for Fake Websites
Fake websites are probably the main cause of people losing funds. There have been countless fake “cryptocurrency” sites and social media channels sharing the news of new “services” which are not legitimate, and countless fake accounts made under the names of a cryptocurrency's core team. This is done in an attempt to con you into trusting the fake services and handing over your private keys (eg. mybtgwallet.com ran a scam that stole millions of wallets.) or to send currency for services that do not exist.
2. Never Share Your Private Key
Your private key is like the PIN number to your debit card. Without it, you can't access your account. Even if you could prove you owned the wallet (bank account) without the PIN it's useless. Unless you are 100% sure the company you are about to give your private key to is established and reputable and show a level of transparency in their dealings then Don't trust anyone with your private keys.
3. Read as Much as You Can About Everything
I'm simply stating that you should always give due diligence. As always but I can point you in the direction of some good source material:
- Bitcoin.org themselves on being secure: https://bitcoin.org/en/secure-your-wallet
- Bitcoin Security 101: http://bitcoinsecurity101.com/getting-started/
- Medium: https://medium.com/@CoinMeteor/how-to-buy-bitcoin-wallet-basics-and-security-a-guide-for-beginners-6a3331972d3c