One of the first things to do on your journey to becoming an experienced crypto user is to learn how to keep your crypto investments private. The main reason for this necessity is the nature of the internet. Hacking and data theft are on the rise across the globe and privacy is the best way for you to stay safe from these threats
Privacy should always be the first step in any crypto protection strategy. Hackers will never think to target you if they are unaware you have anything that might interest them. Here are some vital tips to keep your crypto safe and out of the prying eyes of thieves, scammers, and hackers.
Create a Security Protocol
Every crypto user needs a security protocol. A security protocol is a group of steps you take every time you accesss your crypto holdings. Your security protocol will include all aspects of your crypto interactions such as privacy measures, platforms, storage strategies, and more.
The more crypto you hold and the more intricate your security protocol. For example, the Winklevoss Twins, two of the world’s first Bitcoin billionaires, shared that they keep their private keys split up across multiple high-security bank vaults as part of their approach. While this level of precaution may be far from the normal user’s requirements, it helps to demonstrate the importance of taking this task seriously.
Always Use Discretion
The fastest way to go from crypto balling to broke is by bragging about your holdings to others. It’s ok to be pro crypto on social media channels as this helps to drive adoption. However, you should avoid bragging or other activities that could cause unnecessary attention towards your holdings.
You should never post screenshots of your holdings or wallet addresses. Savvy hackers can take this data and over time compile enough information to access your funding. Even just sharing your private wallet address opens the door for third parties to track the wallet’s balance, transactions, and more.
Additionally, you need to be aware that your bragging could be seen as just a small piece of the pie. There are multiple stories of old-fashioned criminals breaking into the homes of known crypto users and extracting their digital assets in less than enjoyable ways. Sadly, this includes torturing users until they gave up their private keys. In many instances, the victims could have exercised more discretion and remained off the attacker’s radar in the first place.
Use Privacy Coins
Privacy coins are a great way to make it more difficult to track your crypto activities. There are a variety of cryptocurrencies that integrate privacy protections. Platforms like Zcash and Monero launched as privacy-centric networks. Zcash improves user privacy through the use of zero-knowledge proofs.
Zero-Knowledge Proofs are a way in which a network can verify information without revealing any of the data directly. This approach provides better protection against phishing attacks. A phishing attack occurs when hackers slowly extract data from a target over time. The goal is to gather enough information to access sensitive info.
Phishing attacks can work on networks as well. For example, networks that don’t use zero-knowledge proofs can slowly divulge information regarding your wallet address, balance, and history. Once a hacker has this data, they can better tailor their final attack vector.
Another great way to keep your crypto actions secret is to use DeFi (decentralized finance) services like DEXs (decentralized exchanges). Most DEXs leverage non-custodial wallets and don’t require you to provide any private information. The DeFi market opens the doors of opportunity for users in terms of privacy. You can access public lending, trading, and a variety of passive income generation strategies.
The METANOMICs DeFi ecosystem provides users access to a self-appreciating stablecoin, a non-custodial DEX, staking features, and a high yield savings account. Unlike centralized alternatives, there are no gatekeepers that require you to undergo invasive verification policies. As such, your privacy remains intact as you generate wealth.
Coin mixers provide crypto users with a great way to keep their actions protected. These platforms enable anyone to upload their crypto into a protocol that will shuffle it among a bunch of other users’ coins. These systems can vary in their exact specifics but the best ones will include features like multiple wallets and transaction routing. There are even protocols that charge varying fee rates to hide their use from blockchain forensic firms.
The Samurai Wallet is a Bitcoin mixing wallet. This unique protocol automatically shuffles your holdings with other wallet users as part of its core features. This approach streamlines coin mixing which provides Bitcoiners with an easy-to-use alternative that requires no technical knowledge to utilize.
Use Cryptocurrencies Located Outside the Jurisdiction of Centralized Regulators
While most people focus simply on the technological aspects of keeping your crypto private, there is a growing number of platforms taking a more inclusive approach. Networks like META1 have launched their headquarters in locations outside the jurisdiction of centralized financial regulators. There are many benefits to this approach.
For one, these networks don’t have to request a bunch of private information from you in the first place. Your data remains safe from hackers because they never possess it. Additionally, these networks remain free from outside influence from centralized financial forces which enables them to offer unique features and services not found on the competition.
Private to General
Now that you can see why keeping your crypto actions private is important and how to integrate more privacy into your plan, you’re ready for the future. The main thing to remember is that the first step to protecting your data is to not give it out to anyone. Even your trusted bank and payment processors continue to get hacked. As such, only privacy can keep you safe in the digital economy.