What dangers can threaten our cryptocurrency wallet?
A cryptocurrency wallet is a risky investment. There are numerous dangers or threats that can make us lose the money we have deposited. Cryptocurrencies are an advance in terms of the security of transactions, but that security is the responsibility of the user himself . Digital currencies based on a blockchain are therefore as safe as the user is an expert in keeping them. There are many types of errors that can make us lose our investment. In addition, there are also many types of risks when we invest in this market. In this article, we are going to talk about the dangers that can threaten a cryptocurrency wallet.
Not keeping private keys
The blockchain offers us the possibility of having full control of our wallet and our investments. It is enough to download a wallet, or use a web one and save our access keys. Those private keys that are our key, are used to access our funds from any access point. Only whoever has those keys can access the wallet. If the keys are lost, the coins are also lost since no one will ever have access to that wallet again.In the crypto market there is no one who can recover our lost wallet. Our private key is our access and no one can provide it to us if we lose it. For this reason, many people prefer to have the investment in a ' broker' or 'exchange' that are nothing more than platforms that have our crypto under a promise of payment. This brings us to the next point.
Third Party Wallet Services
If we do not have the private keys of our cryptocurrencies, we do not own our wallet. Third-party services for digital currencies are becoming more interesting, but they still do not offer sufficient security for large capitals to enter the market. Users access these types of platforms with a name and password. The composition of the wallet is registered in the account, but access to it depends on the availability of the provider. The only safe way to store our crypto is by having the private keys, but this comes with its own dangers.The lack of regulation is a problem at this point, as long as you do not prefer to keep your cryptocurrencies yourself, which is, after all, what they have been created for. Saving part of the wallet in exchanges is a mistake that can pose many dangers for our investment. To avoid this, you should only have money deposited in an exchange that is going to be used for 'trading '.
hackers
Hackers are a huge threat to our cryptocurrency wallet. The possibility of a 'hack' is one of the dangers for which it is not the safest thing to keep cryptocurrencies in an exchange, but they are also dangerous, although to a lesser extent, if we ourselves have the keys to the wallets of our wallet.'Phishing', false rewards, viruses, theft of our credentials, address theft. The methods used by ' hackers ' are very varied and are increasing. To avoid possible 'hacking' it is important to keep our private keys disconnected from the Internet or in a physical wallet, which can be both storage hardware and a paper wallet.
non-returnable transactions
A transaction made in the chain of blocks cannot be reversed. The addresses are encrypted and are long lists of letters and numbers that are very difficult to memorize. It is easy that when carrying out a transaction a mistake can be made when entering the address to which the funds are sent. If we send money to the wrong wallet, we will not be able to recover it.Little diversified wallet
Precisely because of the vulnerability that crypto wallets currently have, having a poorly diversified investment is one of the most common dangers and, in turn, the easiest to prevent.Having all our crypto in the same wallet or the same platform is putting our entire wallet at risk at once. The safest thing is to have the investment set divided between different assets, but also between different wallets and platforms.
Lack of interest in Bitcoin
In the ten years of existence of Bitcoin and the chain of blocks, we have had periods of great interest and exponential price increases. On the contrary, we have also had times in which the downward trend of cryptocurrencies has led many people to believe that this digital currency thing had come to an end, that the bubble had burst and that we would never see Bitcoin reach it again . new highs.This scenario, although unlikely considering the possibilities of the blockchain, is still one of the dangers for our cryptocurrency wallet. If companies do not take an interest in crypto assets, and the market loses its attractiveness as a speculative instrument, we could see very weak Bitcoin. In the worst case, and if catastrophic, miners could no longer see a profitable business in Bitcoin and the network could weaken until it becomes abandoned and obsolete. Right now, luckily, this seems more like the plot of a science fiction movie than the reality about the future of Bitcoin and cryptocurrencies.
regulations
The laws of the different governments can put our cryptocurrency wallet at risk. Third-party services for the storage and exchange of cryptocurrencies are once again the most susceptible to being threatened by the laws of the financial world. The ideal is to have the assets that are stored by third parties always within platforms whose companies are based in countries with laws favorable to Bitcoin. It is also a sign of security that we are asked to verify our identity through our passport or ID and proof of our address.If the company complies with the law, it is less likely that it can be closed, leaving us without access to our wallet. There are some exchanges that are not regulated but that are very worthwhile for their cryptocurrency catalog or for their services and commissions. Although nothing has to happen, it will always be less safe to operate in them.
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