Why Privacy Is So Important To Protect Your Crypto Assets

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15 Feb 2024

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Satoshi Nakamoto introduced the world to the revolutionary concept of decentralized digital currency. But, beyond the technological breakthrough, Nakamoto's decision to remain anonymous is important.

On April 23, 2011, Satoshi sent his last email; since then, nobody has heard about him.

By remaining anonymous, Satoshi prioritized personal privacy and safety. Satoshi knew that revealing a real-life identity could make Satoshi vulnerable to various risks, such as hacking, harassment, or even physical harm.

Unlike Satoshi, you most likely don't need to remain anonymous, except if you choose to create the next revolutionary cryptocurrency.

But, like Satoshi, you should maximize your privacy by controlling what information you share about yourself while you are online and with whom.

Avoid Unwanted Attention

Publicly known crypto holdings can attract unwanted attention, ranging from unsolicited but harmless investment advice to malicious pursuits.

Luckily, your anonymity shields you from unwanted attention, allowing you to navigate the crypto space with a lower risk of becoming a target for scams or exploitation.

Let's examine the consequences of becoming a public figure associated with a large bag of Bitcoins.

In the article 'Whopping 25 Bitcoin (BTC) Stolen After 10 Years Of HODLing,' you have an example of how anonymity and privacy could have prevented a targeted hack.

In short, this is the story of two proud Bitcoin holders who wanted to share their joy and excitement with the world but turned wrong. Unfortunately, those Bitcoin holders disclosed their personal information (e.g., name, surname, destination), making them easy targets for a hack.

You want to talk about cryptocurrencies with other people, and you want to share your passion for the crypto assets you own. Limiting the personal information shared online is fine, so your real-life identities are not compromised.

Because once your real-life identity is linked to any significant amount of crypto assets, your safety and the security of your assets are at risk.

Securing Your Crypto Assets

Keeping your identity private can mitigate the risk of becoming a target of hacks, scams, or even physical harm.

You are fortunate because you have the advantage of privacy, shielding you from targeted attacks.

In the article 'Blockchain Capital Bart Stephens SIM SWAP Hack - Could Have Been Prevented?', you will find information on how a crypto user and public figure got 6.4 million US dollars worth of Bitcoin, Ether, and other cryptocurrencies stolen from his wallets.

This case is a public figure known to own considerable amounts of crypto assets 'protected' by weak security.

Bart Stephens's work makes him a publicly known crypto assets holder. He could have used much more secure two-factor authentication methods, though.

In this other article, 'Mark Cuban 870K USD Hot Wallet Hack -Could Have Been Prevented?' we had an example of a crypto user who named by wallet as 'Mark Cuban 2' (with 870K USD worth of crypto assets in it) making himself the target of a cyberattack.

If Mark Cuban had a wider knowledge of digital and crypto safety, he could have probably prevented the attack.

You still have your online anonymity and personal privacy. Plus, you are learning about how to keep your crypto assets safe. You are actually in a better position than most crypto asset holders.

Are you still not convinced how privacy equals security and safety? There are still many more examples to learn from:

Safeguard Your Online Identity

Learn from the master and take steps to protect your anonymity and security by applying as many good practices as possible:

To the best of your abilities, ensure that your online and real-life identities cannot be linked. Or, at the very least, do not make the size of your crypto assets portfolio public to the world.

Using a virtual private network (VPN) when browsing the net from home is optional. But you care about cybersecurity, and you know it is mandatory to use a VPN when using public wifi from hotels, restaurants, and cafes,...

Protect your digital accounts by learning and applying the best security practices. What is the point of keeping online privacy if a hacker breaks into your email account and discovers many emails with personal information? The hacker may use that information to exploit or sell it on the dark web to those with malicious intentions.

Always protect your email account with a unique and strong password plus two-factor authentication. Or, even better, if there is the possibility of not using passwords, like the Google Advanced Protection Program. Because even if you are careful, you cannot prevent your emails and passwords from being made public on the dark web through a data leak.

Protect your devices from hacks so nobody discovers you have cryptocurrency wallets. If someone breaks into your computer or mobile devices (for example, using an O.MG cable), they will find out about your browser or desktop accounts. The next step will be installing a key logger to discover the passwords and steal your seed phrase or private keys.

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Congratulations on completing this 5-minute digital safety power-up.
We hope this short article has helped increase your crypto safety knowledge and awareness, and the 5 minutes read was worth the time.