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Now that the U.S. has elected the first crypto friendly president, top digital investments like Bitcoin (BTC) have sky-rocketed in value since the November 5th election. Now the new administration is considering making Bitcoin a part of its Strategic Reserve along with a promise to make the U.S. the crypto capital of the world, it only makes sense that other major countries will follow suit, thereby increasing the value of crypto products even more.
But along with increased value comes an increased chance that your personal stash of crypto will be hacked by nefarious players from around the globe. Says cryptocurrency recovery firm, Silver Miller Law, generally speaking, a victim of fraudulent crypto recovery will fall prey in the following manner:
—Victim suffer crypto loss via fraud or theft
—Victim searches the internet for a company that claims it specializes in the recovery of lost or stolen crypto
—Recovery service requires large up-front payment from Victim and makes false promises of success without demonstrating a history of success for past clients
—After paying the up-front fee, Victim does not hear from the recovery service ever again. Victim is unable to contact anyone at the recovery service to investigate the case further
That said, a crypto investor needs to do everything and anything reasonably possible to protect his or her crypto investments in 2025 and beyond. How does one go about this? According to a recent report by Finextra, cryptocurrency security is a term that encompasses everything that should be learned about the potential dangers of digital investments, and what can be done to make them safer and free from scams.
Crypto exchanges and services do not offer the same security levels as centralized banks. They are not regulated the same way and do not follow the same fiduciary rules. This means if a client’s crypto is lost for one reason or another, it is likely to be lost forever. This is why it’s of paramount importance to constantly be updated with information regarding crypto security to understand the pitfalls of investing.
Crypto Risks
Risk 1: Leaving Crypto on an Exchange
When they first begin trading crypto, many investors find it convenient to leave their crypto on their chosen exchanges. This makes things easy since the crypto and funds are readily available for any type of transaction that can be accomplished.
However, hackers target the exchanges precisely because so much crypto is available in one place and ready for the taking, so to speak. Keep in mind, exchange hacking isn’t limited to other parties. Exchange employees and even founders have been known to commit significant fraud.
Risk 2: Storing Crypto Locally
While seed phrases attached to centralized cloud storage can be backed up on local devices, they can also be lost or stolen. Some investors simply forget their Password or PIN. The ultimate problem with storing crypto locally is that it’s easy to misplace it or for a nefarious operator to track it down and nab it.
Risk 3: Becoming the Target of Criminals
The chance that your crypto stash is being targeted is very real since so much personal information is available on the web for anyone who wishes to cause financial harm. SIM swap assaults that can bypass 2-factor authentication, email phishing attacks, and other “smart social media engineering tactics” are prime examples of personal crypto attacks.
Risk 4: Natural Disasters and Accidental Loss
It’s estimated that the amount of crypto lost every year due to natural disasters and/or accidents presents a challenge, but the losses are said to be in the billions of dollars. Most people involved in the crypto space still believe the most common cause of lost crypto is due to forgotten passwords and PINs.
Risk 5: The Loss of Generational Wealth
It’s not typical to think about dying when an investor is initially entering the crypto world. But the repercussions that can come with not securing one’s stash can mean the loss of generational wealth. It’s not a bad idea to contact a reputable lawyer that specializes in lost or stolen crypto to find out about the safeguards that should be taken to protect your investments.
Cryptocurrency Security Measures
Says Finextra, hackers are usually difficult to track since they can erase their digital fingerprints almost immediately after stealing a crypto account. Investors who are hacked sometimes have little legal recourse since crypto is not controlled by a centralized bank. This means it’s up to the investor to take the necessary steps to secure their crypto coins. Here’s how to protect crypto in 2025 and beyond:
Research the Exchanges
Research and learn about the different crypto exchanges prior to investing even one dollar. The many platforms do the same thing. That is, allow investors to sell and purchase cryptos like BTC. But they all operate differently from one another. Some are more secure than others too. It’s important to research every platform and to perhaps seek the advice of a lawyer or a professional investor about which platforms are the safest.
Be Aware of Storing Cryptocurrency Safely
Once crypto is purchased, it must be stored safely. It can be stored on an exchange or in a digital wallet. Numerous wallets are available for the investor to purchase. Each one possesses its own pros and cons, plus security features. Much like the exchanges, it’s best to research the storage options prior to investing.
The Hybrid Digital Wallet Strategy
Online wallets, while secure, are said to be attracting the attention of hackers. With this in mind, the majority of an investor’s crypto should be stored in physical, offline wallets, while only a small amount is stored online. The physical wallet needs to be kept in a safe or perhaps a safety deposit box. It’s also important to separate private and public keys.
Strong Passwords are Essential to Crypto Safety
Never use the same password for maintaining several crypto accounts. Always be aware that the crypto platforms are massively popular targets for cybercriminals and hackers. It’s important to assume even the most trusted platform will undergo a breach at some point. Risk can be limited by creating strong passwords along with two-factor verification. Change your passwords frequently.
Investing in crypto can be a game changer when it comes to creating generational wealth quickly. But it does not come without its risks. Don’t get caught by hackers unawares. Take every security measure you can to make sure your crypto is safe and sound.