In the eyes of financial regulators, cryptocurrency is unsafe because it is in their best interest to control how people use their money. These statements have resulted in their desire to dismantle digital currencies and cryptocurrencies as a method of money.
According to these institutions, holding cryptocurrency is no safer than holding fiat and other regulated forms of money.
In reality, this is an incorrect perception of financial institutions concerning the safety of money in the form of cryptocurrencies, which has been proven otherwise and is now considered one of the safest methods for keeping money.
Can fiat currency be stolen?
In an era where money has evolved from one form to another and is managed by financial institutions, there are numerous cases of robbery that can be traced to individuals, small businesses, and institutions as a whole.
Several large banks have been robbed, and such monies have been hidden and spent without proper traces to this day. In order to balance the books, the banks simply print out more money as there are no limits to how much can be printed.
The same is also true for government officials who steal and launder such money to foreign offshore accounts with some level of discretion to avoid traces.
These are some of the challenges associated with the fiat currency in use by the financial system of countries globally. Invariably it is a known fact that all forms of money can be stolen, it would require the individual to be diligent in the handling and safety of such funds.
Is cryptocurrency safe?
Blockchain technology can be attributed to being one of the many wonders of the world created to disrupt the anomaly associated with what is obtainable in the financial system in terms of credibility, quantity, tamperproof, safety, and cost of transactions.
Due to the underlying technology which is dependent on mathematics and has fundamental principles that are not liable to change upon execution, cryptocurrencies were created to authenticate the real value associated with blockchain technology.
It is expected that in every field of life there are always bad eggs associated with the bunch who would always go out of their way to sabotage the essence of any creation, no matter how good the invention is meant to be.
This is evident from the series and a countable number of hacking operations which have been carried out in the crypto space. The hackers who are synonymous with robbers in the traditional finance system have been seen to attack individuals, small businesses, and larger corporations as well.
However, there are basic instructions on handling and managing the safety of funds within the crypto space.
How can I keep my cryptocurrencies safe?
The blockchain backend process which is associated with crypto transactions involves documentation of transactions into different blocks along with time-stamping which is stored in a distributed ledger system.
It is also noted that Blockchain offers a comprehensive security mechanism in the forms of hashing, digital signatures, and public and private key cryptography for safeguarding cryptocurrencies.
There is the need to have a basic understanding of the use of public keys and private keys along with crypto wallets for identifying the best approaches for the safety and security of cryptocurrencies.
The private keys which are unique to each crypto user are a set of alphanumeric digits and they can be used in unlocking the cryptocurrency wallets on a blockchain.
Similarly, the public key on the other hand is a series of alphanumeric digits that can be used by individuals or owners of crypto wallets to identify a specific crypto holder before transferring assets to them. These can also be used as a wallet address or identifier for the recipient of the cryptocurrency.
However, the possible cryptocurrency security issues primarily arise from security breaches in crypto wallets or compromised private keys which most of the time arise as a result of negligence on the part of the owners of the crypto wallet.
Should people be concerned about crypto security?
In recent times cyber-attacks are gradually evolving on a daily basis, and hackers are modifying their tricks for attacking susceptible individuals and crypto exchanges.
Subsequently, cryptocurrency security is a serious issue of concern as the number of associated crypto theft from exchange platforms and wallet providers have grown in leaps and bounds.
There is also a striking fact that almost 5 million Bitcoins are inaccessible, due to the inability of their owners to access their private keys. This goes to show that without access, there is no way your funds can be stolen.
There are also phishing scams by fraudsters to deceive unsuspecting users to log in to scam sites that may have a resemblance to genuine sites. So it is expected that users are mindful and watchful to observe that they don’t click on suspicious sites or links.
This may have malware that can help the hackers access the users’ private keys and, in turn, steal their funds.
In conclusion, cryptocurrency is a more secure way of keeping your funds except if there is some negligence on the part of the owner to grant access to the potential hacker or thief to steal their funds.
However, we at Klever would like to encourage our users to ensure they use high-grade secured wallet apps like the Klever wallet for storing their funds in a Klever way.