Protection Methods Against Crypto Asset Fraud
How Do We View Crypto Assets?
Which of the two approaches below defines your risk profile? Test yourself:
"Do we see crypto assets as a shortcut to getting rich?"
If your answer is yes, you have a risk appetite that makes you highly susceptible to being scammed. This impatience and emotional state open to manipulation will unfortunately make you fall directly into the nets of cyber scammers.
"Do we see crypto assets as a rational investment tool?"
If your answer is yes, you have prioritized protecting that profit in the cyber world as much as making a profit from the crypto ecosystem. Protecting your portfolio is not a luxury for you, but a fundamental process.
We, as the Crypto Legal Team;
Assume the mission of informing our clients not only with the legal aspects or technical defense side of this business; but also with the financial literacy side. To make a permanent profit and invest safely in the crypto ecosystem, the first thing to do should be to get a proper and in-depth education on this business.
Unfortunately, many investors who open trades with huge amounts of money inside cannot go beyond opening an account in local or global centralized crypto exchanges (CEX).
Most crypto assets listed on centralized platforms (CEX); actually started trading on decentralized DEX platforms days, weeks or even months ago, and were moved to centralized exchanges after reaching a certain volume maturity. The asset you bought from the exchange with great hope may have actually already reached the saturation price level. Therefore, having the necessary technical knowledge and equipment will always put you one step ahead in this market.
How Do We Store Our Crypto Assets?
Ensuring the security of assets is as critical as the capital you spend to earn them.
Hot Wallet Dynamics
Refers to online crypto asset wallets that offer ease of use and always have internet access. It tries to provide protection with the secret password and recovery codes (seed phrase) specially given to the user.
Biggest Handicap:Due to its online structure, it is always open to cyber attacks, phishing attempts and malware. It is essential to establish extra proactive protection shields for the security of hot wallets.
⚠️ Exchange Wallet Danger
This area, actively used by 90% of investors, is the last place where assets should be kept. In addition to user-error hacks, there are risks of the exchange being hacked, going bankrupt, or scamming and closing as in the examples of Thodex, Cryptopia, livecoin.net. Even if exchanges have good intentions, refund processes can take years.
🔒 Cold Wallet Power
These are physically portable hardwares without an online internet connection. It provides the safest protection for cyber pirates. It is generally preferred by long-term (HODL) investors with high portfolios. However, the transaction speed is low and it is essential that the crypto asset you will store is supported by that hardware brand.
Missing Information Can Destroy Your Entire Investment
Wallet security and protection methods against crypto asset fraud is one of the most essential subjects that requires serious training. Knowing centralized and decentralized platform dynamics, ensuring cyber hygiene, and fully mastering crypto jargon is the most effective armor that will protect you against cyber risks.