Being a web designer, I am always faced with the dilemma of how do I keep my clients data safe from malicious people. I try to educate them about not opening up suspicious links to emails and websites but of course this got me to thinking about just how safe our information is in the crypto world. Turns out: its through cryptography.
It works something like this: Each user has special codes embedded in the transaction which stops their information from being assessed by others. This is called cryptography and its nearly impossible to to hack. It’s also where the crypto part of the definition comes from. Crypto means hidden, so the information is hidden.
I’m not going to go into a long explanation of this ( I will put a video below that explains this in detail) but its pretty much like the process of sending an encrypted message to a business associate or your friend. If they have the same email program you have, you can just encrypt the email before you send it which basically scrambles the words and send it out so that it’s safe from malicious people until it gets to you safe and unaltered in any way. That’s pretty cool.
When you making money transactions on the internet the last thing you want to think about is if the wrong person is going to intercept the transaction. I know that cryptocurrency is still going through it’s growing stages but I feel much more confident knowing that developers are thinking hard about security and encryption.
As much as I want to jump right into Bitcoin trading, I know that I must do my due diligence so that I don’t get scammed as a newbie.
Since there is so much news about crytocurrency scams these days, I wanted to know what to look out for, and after a little digging I came across some very good tips.
I won a new crypto wallet last year at a conference and I already knew that the issuing company was reputable but I found out later on that you really do have to do your research to make sure your dealing with good companies right from the start. Check out reviews and talk to others that have dealt with that company directly. As far as exchanges, make sure that you are checking prices and also make sure the site starts with HTTPS which is a sign that the traffic is encrypted. If it sounds too good to be true (and promises the world) – it probably is.
Of course we all know about fake websites that bait and switch visitors but what I didn’t know was that this tactic is being used in the crypto space via social media (See video below). ICO’s – Don’t deposit your coins ANYWHERE until you fully vet the ICO that your thinking of investing with. READ the white paper carefully.
It’s interesting that I was looking into mining just a few weeks ago. Turns out this is also an area where you really have do your homework and be realistic about returns on investment since they will probably go down a little over time and you have to be wary of sites that promise you otherwise.
I’ve ultimately decided that I’m going to read a few crypto articles everyday along with my favorite blogs so that I can start to spot things that would stand out as a red flag right away. I also read Investopedia for all things financial. They have some great articles on crypto as well.