What you need to know about Digital Currency security

Last year, the value of the major cryptocurrencies, led by Bitcoin, increased by over 2,000%, leading many investors to believe that digital currencies were truly the investment asset class of the present and future.

However, there are many factors which have weighed on the minds of cryptocurrency traders and long-term investors this year such as future regulations, security issues, and real-world applications of digital coins. In fact, many of these factors are what caused the recent meltdown of cryptocurrency value at the beginning of 2018.

While many cryptocurrency experts feel that regulation is key to legitimizing the digital currency markets, the security issues still pose a problem for them when theorizing about digital coin-based assets and their long-term standing as the future of investing/trading.

Japanese Theft

One of the biggest events that shook the digital currency world as of late, was the $500 million robbery of a leading Japanese cryptocurrency trading platform by online hackers.

This particular incident, along with other smaller scams and hacks within the past year or so, has left traders with a sour taste in their mouth when it comes to the security of digital coin storage and trading.

Where To Store Crypto Coins

Even though cryptocurrencies were designed to be safer than their physical counterparts like cash and coins, the truth is that virtual money is extremely vulnerable to those who know the ins and outs of the digital landscape (i.e. hackers).

This very fact is why it is not a good idea to store one’s digital coins in any cloud-based format that is easily accessible to hackers. This includes any web-based app or network-based computers.

As the nature of cryptocurrencies is to give sole-ownership to the holders of the coins, whoever has them is the owner even if they acquired it by legal means. What is more, as no current regulation designed to stop or catch hackers from invading a web-based wallet, once the coins are gone, there can is retrieving them or reimbursement of any kind.

To read more, please click on the link below…

Source: What You Need To Know About Digital Currency Security – Analyst of Finance