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Cryptocurrencies have become more than simple volatile digital currencies in recent years. Where people used to think they were just a trend or passing craze, they’ve developed into a popular currency. People across the globe invest in it, and you can even use cryptos to buy several services or products. However, while blockchain technology is more popular than ever, there are still a few security concerns.
We look at the primary cybersecurity risks and solutions, like using dedicated data center proxies to protect you. If you’re interested in how these proxies can help, keep reading to learn more.
What’s Crypto Trading?
Cryptos are digital currencies that are generally decentralized from any authority. These currencies use blockchain technology to transfer funds. Blockchain technology collects the transfer data and stores it in “blocks.” These blocks are then chained to other blocks once it contains all the data they can hold.
It’s a secure digital ledger that records all the transactions anonymously. As such, it manages to remain transparent and private all at once. Cyber trading is when you exchange cryptos for another or engage in any buying or selling of cryptocurrency using an exchange platform.
Public Blockchain
A public blockchain is where any user can join the server and participate. It’s a decentralized network with many nodes and follows a permissionless system. Overall, it keeps the participants anonymous and records all transactions without exception. Any changes or movements are recorded, thus making it secure.
Private Blockchain
Private blockchains aren’t as popular as public ones. In these permissioned networks, a single system or organization controls the web, so it’s not decentralized. It’s often seen as more trusted, as you require the permission of the manager to participate in this blockchain verification.
Cybersecurity Concerns
Blockchain technology isn’t foolproof. It can be vulnerable if you don’t use security tools like dedicated data center proxies. Below, we look at some of the common cybersecurity concerns.
51% Attack
Blockchains use “miners” to validate transactions. Miners are when individuals collect hash rates to confirm a transaction. However, a 51% attack, exclusive to public chains, is when hackers collect over half the hash rates. This attack means hackers are the primary miners and can alter the transaction orders and prevent them from verifying.
Phishing
Like standard phishing attacks, hackers can pretend to be a reputable crypto exchange platform. They then ask users to verify a transaction or provide information. They can infiltrate your systems and crypto wallet by clicking on the link. This infiltration means they can access your digital assets or log in details.
Illegal Trading Platforms
Since cryptos are becoming more popular, new crypto exchange platforms also appear. While many are legit platforms, hackers can also set up scam exchanges to steal cryptos. An example of a multi-level marketing scam is the platform OneCoin, which committed a $4 billion fraudulent scheme.
Malware
Malware is highly adaptable. Hackers use crypto-malware to mine cryptos on another individual’s device or server. Malware can be installed accidentally through phishing tactics. If you interact with it, it can also infect your device through malicious codes and viruses on websites.
Non-Regulated Crypto Exchanges
With decentralized networks, crypto exchanges aren’t regulated by any one authority. However, this leaves it vulnerable to hackers and cybercriminals looking to attack it. That’s why many governments are looking into restricting cyber trading.
Routing Attacks
Hackers intercept the data transfers on the way to the ISP, meaning it never arrives or takes longer to transfer. This attack leaves the data vulnerable, such as exposing sensitive transfers or extracting the cryptocurrency without the users’ knowledge.
Proxies as a Solution
While there are various dangers with blockchains and, thus, crypto trading, you can use dedicated datacenter proxies to combat these risks. These proxy servers act as an intermediary and provide many benefits that we’ll look at below. Dedicated ones are datacenter servers that pull the IP from a data center pool. However, only you use the IP pool instead of it being shared with other users, making it safer.
Prevents Phishing and DDoS Attacks
Proxy servers let you block unsafe websites and even email addresses, helping you to prevent phishing attacks. Alternatively, you can use proxies as content delivery networks to limit the severity of DDoS attacks and cache web pages faster, heightening your security.
Positive Brand Image
You can ensure a trusted brand image by using proxies to up your security. Hackers will try to gain access to your cyber trading logins or similarly sensitive data, and proxies can help prevent that. It helps your clients trust you more and protects your interest.
No Data Breaches
You can block suspicious connections to prevent data breaching in any crypto trading platform. Whether you’re using or managing the platform, proxy servers help increase your security and make it more difficult to access your network directly.
Increases Privacy and Security
It might seem obvious at this point, but since you’re not directly engaging with the crypto exchange platform, your transaction is safer. This intermediary helps prevent hackers from accessing your login credentials or infecting your device with malware. Proxies completely mask your IP address, making them the perfect tool to hide sensitive information.
Keep Your Crypto Trading Safe
Crypto trading is becoming more popular, and it doesn’t seem like this trend will soon stop. However, before you jump onto the bandwagon, ensure you can keep confidential information safe. Ensure you know the risks, such as illegal trading platforms and phishing schemes, and protect yourself with dedicated data center proxies.
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