Crypto Basics: A Beginner’s Guide to Digital Currencies — Part 4: Security Measures | by Freia Skogstad | Feb, 2024

Image created by DALL-E, an AI program developed by OpenAI

Welcome back to ‘Crypto Basics’! Previously, we’ve tackled blockchain as an Excel-like ledger and explored blockchains as cities. We’ve also delved into public addresses, private keys, and seed phrases. Now, let’s focus on essential security practices for managing your digital assets.

Utilizing a VPN (Virtual Private Network) is an essential strategy for enhancing online privacy and security, particularly for those involved in cryptocurrency transactions. Here’s why and how a VPN can be a crucial tool in your crypto security arsenal:

  1. Anonymity in Transactions: Blockchain transactions are inherently transparent, showing the flow of funds between public addresses. However, the real-world identities behind these addresses aren’t automatically disclosed. If your identity gets linked to your wallet address (e.g., through transactions with identifiable parties, or social media posts), it could make your entire transaction history traceable. This exposure can lead to potential targeted attacks or unwelcome scrutiny.
  2. Mitigating Real-Life Threats: If malicious actors can link your wallet address to your physical location, it poses not just a digital risk but also a real-world security threat. Especially for those with significant crypto holdings, this could attract physical theft or harm. Using a VPN helps mask your IP address, thus disconnecting your online crypto activities from your real-world location, reducing such risks.
  3. Best Practices for Wallet Address Privacy: To maintain privacy, consider using different wallet addresses for separate transactions. This method of compartmentalization helps in mitigating risks, ensuring that a breach in one transaction doesn’t compromise your entire portfolio. Additionally, be cautious about making your wallet address public. For activities that require public disclosure of your address, consider using a separate wallet specifically for that purpose. This approach is particularly useful when testing new apps or protocols that may have security vulnerabilities.
  4. Avoiding Public Wi-Fi for Crypto Transactions: Public Wi-Fi networks are…

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

Get our latest downloads and information first. Complete the form below to subscribe to our weekly newsletter.

    Input this code: captcha