Scams have continued to be among the top avenues of crypto loss. Federal Trade Commission reported the highest ever loss from crypto scams in the middle of last year.
The crypto loss was worth $82 million, ten times more than the previous report. With crypto scams reaching a new high, it is high time crypto investors and traders know what they are up against. The security of your crypto wallet is crucial to how much you will earn investing in cryptocurrency. If you keep your cryptocurrency in wallets, you should be conscious that all types of crypto wallets, including the most secure hard drive wallets, are vulnerable to attack, being hacked and emptied. While blockchain technology is crafted to be highly secure, and a blockchain database is nearly hackproof, human error remains a possibility and physical risk. The risks can vary and change constantly.
However, we are a centralized exchange and coins are stored in cold wallets. Only some amounts are kept in the hot wallet to handle withdrawal requests. Hot wallets are a kind of digital wallet that often has a direct connection to the network - online. Its greatest advantage, to which we owe convenience - permanent connection to the network.
Cold Wallet is a type of hardware wallet - often resembling a USB flash drive. Hardware (cold) wallets are characterized by a high level of security. Hardware wallets, like the aforementioned devices from Trezor or Ledger, are small and easy to carry discreetly.
WALLET TIP: Use solid and up-to-date passwords. Don't visit suspicious sites or click on suspicious links. Don't use "Free Wi-Fi". Use internet security tools such as antivirus programs and VPNs. Enable 2-factor authentication for all your accounts.