THE HUMAN PROBLEM WITH CRYPTOCURRENCY

The invention of cryptocurrency is simply genius. The ability to operate with a digital asset and to conduct quick safe transactions online using your unique personal code is probably as secure as it can get. The blockchain technology also does its own part to ensure that all transactions are consented and cannot be hacked. I am a big fan of Cryptocurrency and I recommend it as a profitable investment for the future, however there are procedures in the use of cryptocurrencies which makes it a risk.

Hacking has been a general internet related problem, but it seems to be solved by the blockchain technology, yes, it’s going to be tough for hackers to simply gain access into any decentralized cryptocurrency account but here is a new angle to look from

Decoy ecommerce sites

Ecommerce is widely popular in today’s world. People love the idea of service at your finger tips so they simply go online, browse through ecommerce store and purchase whatever they like by putting in their personal details. Here’s the problem, online shoppers can be tricked to upload their cryptowallet passwords while trying to shop on a decoy website. This could be catastrophic if the website gains a lot of traffic with people purchasing with cryptocurrencies.

Theft of Cryptocurrency Wallet 

Users of cryptowallets often store the files on their computer, where it can easily be duplicated or stolen by a malware or even lost in the event that the hard disk crashes. A preventive measure would be to make copies of secret keys on USB hardware.

Risky ICOs

Often time’s businesses and corporations hold fundraisers using cryptocurrency, which are called Initial Coin Offering (ICO). They can be risky if the network of transfer is insecure. This depends on the cryptocurrency being used. This is the problem that Ethereum was created to solve. ICOs are becoming a widely recognized means of fundraising; all that is needed is an internet connection or Wi-Fi.

Tips for Cryptocurrency holders

  • Make sure to verify website address before giving out your details.
  • Go for cryptocurrency hardware wallets

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