Digital privacy: how to protect personal data and crypto savings?

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20.05.2021
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Digital privacy

Cryptocurrency is focused on privacy and anonymity in its nature. When conducting transactions, digital assets preserve the identity of the owner incognito, thereby helping to store and transfer funds with unprecedented freedom.

However, you need to understand that the level of privacy also depends on what tools a particular user chooses, how he uses them, as well as what tricks a fraudster is going to use to grab your data.

Most of the responsibility for personal safety and security of digital funds is upon the user. Today we will discuss the best ways to protect personal data and privacy.

Let's start from the basics

There are basic rules for protecting personal information that you shouldn’t ignore. They are pretty easy to follow and don’t require technical education. Moreover, these rules will help you in everyday life.

  • Disable cookies

Cookies are small text files on computers that store data about previous browsing activities. They contain information about products that you added to the online shopping cart, what language, currency or font size you prefer, what websites you use, as well as the device’s IP address and user's location.

Enhance the security level: block the use of cookies, or set cookie preferences for each browser or website.

  • Use private browsing mode

Most browsers have a built-in private browsing mode that doesn’t save the history of requests and prevents websites from tracking your actions. Alternatively, you can use a confidential search engine like DuckDuckGo or Search Encrypt.

Advanced protection for working with cryptocurrency

If you have already mastered the simple security rules, you can proceed to the advanced privacy settings of personal data.

  • Use VPN

It may seem that VPN can be set only by the programmers. In fact, most of the services have very simple and accessible features. VPN will provide additional protection while working on a cryptocurrency exchange and prevent your password from fraudsters.

  • Create separate accounts to work with digital assets

Experts unanimously say that you need to create separate accounts, email and phone numbers to work with cryptocurrency. Thus scammers will have no access to your public data and personal accounts. At the same time, it’s important not to leave addresses and passwords on publicly available resources. All you need is to keep an eye on the data.

Forget about using passwords like 123456, qwerty, welcome, etc. We've mentioned this before, but we'll say it again – passwords are EXTREMELY important and must be secure.

The easiest way to create a secure code is to use a password generator or come up with at least four words. The main thing is complexity

  • Install an encrypted browser

For sure, browsers like Google Chrome or Safari have their own security and data protection tools. However, the majority of crypto enthusiasts use encrypted browsers: they provide high-level protection, getting rid of secondary settings. Tor and Brave are considered to be the best options today.

  • Change Bitcoin addresses from time to time

More than 50% of digital asset transactions go through wallets that have been in use. But after all, the blockchains of many coins are open to everyone, and if someone manages to match one of the addresses with a specific person, attackers will have the entire history of the user's money movement.

Creating a new BTC address is free and takes less than a minute. Thus you can increase the chance to remain anonymous in the crypto world.

  • Use cryptocurrency mixers

The operation algorithm of cryptocurrency mixers is very simple: the user sends assets to the service address, his coins are mixed with other people's transactions or distributed among hundreds of wallets inside the mixer. After that, the “clear” assets are returned back to the owner or transferred to another user's wallet. By using bitcoin mixers, you can increase your anonymity, because it will be impossible to trace the connection between the crypto sender and recipient.

Nevertheless, we want to warn you that cryptocurrency mixers are a controversial decision. Their use is perceived by regulators as an attempt to launder funds. However, according to statistics from Chainalysis, 90% of mixer users use them only for confidentiality purposes. Moreover, these services are not prohibited by international AML regulations, but the top exchanges are still hedging their bets: they won’t block an account that used "mixed" coins, but such a wallet will definitely fall under the control of trading platforms.

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It’s up to you to follow our pieces of advice or not. But each of them is a step towards data security. Don’t neglect at least basic privacy rules – this way you can protect yourself and your digital assets!

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