Security: Top 5 things to know before investing in cryptocurrencies

Have more questions? Submit a request

 Investing in cryptocurrencies is a choice that many individuals and professionals  turn to either with an attempt to a diversification of their assets, or with a view to generating a higher return than that offered by the traditional markets.

      For this reason, it is important to have some basic understanding of basic knowledge that will enable you tooptimising the security of your cryptocurrency investments.

      In this article we will detail critical points on which it will be necessary to focus your vigilance when you decide toinvest in the cryptocurrency market.

You can navigate directly to the point of interest: 

The choice of platform
The first step is to choose the platform that offers the best in terms of security. Every year dozens of platforms platforms are hacked and their clients' funds stolen; in the majority of cases these the majority of cases these funds are lost. The total amount of stolen funds is estimated at 2,200 million between 2014 and today. Behind behind this is a simple explanation: the majority of these platforms are not regulated by any competent authority.

Our first advice is: "Always choose a platform registered with the AMF" (see list). registered with the AMF" (see list) Coinhouse is the first platform to be platform registered as a PSAN with the AMF (E2020-001). In addition to being the leader on the French market, Coinhouse is a historical actor of the cryptocurrency in France.

Since its inception in 2015, Coinhouse has always prioritised the security of its security of its customers' assets with the most advanced security technologies technologies on the market (in partnership with Ledger) as well as the rigorous KYC processes rigorous KYC processes in place.
Le stockage de vos actifs
Lorsque vous achetez ou déposez une cryptomonnaie, celle-ci est stockée sur ce qui est communément appelé un “wallet” qui est un portefeuille numérique spécialisé dans le stockage de cryptomonnaies. Ces portefeuilles numériques sont constitués d’une clé publique qui permet de recevoir et d’envoyer des cryptos un peu comme un IBAN ainsi que d’une clé privée qui correspond au code secret permettant d’y accéder.

There are several storage solutions such as free online wallets, but the most but the most secure is the hardware wallet which takes the form of a the form of a USB key. The undisputed leader in this market is the company Ledger which offers the most efficient storage system to date. Coinhouse takes the security of your assets very seriously, we do everything we can to ensure that your assets are to ensure that your assets are secure and easily accessible to you. by you.

So it's fitting that we've adopted their Ledger Vault technology to store your assets, it's a true digital safe that's completely is completely cut off from the Internet, more commonly known as a cold wallet. a cold wallet. Logging into your Coinhouse account account allows you to communicate with the vault.

If you want to secure your assets yourself on a Ledger key or other external wallet, you can external wallet, you can send and deposit the following assets to and from the following assets to and from our platform at your convenience: Bitcoin Ethereum, Ripple, Litecoin and BitcoinCash.

If you want to start a Ledger key, you can also follow our tutorial that we created.
Optimising the security of your account
The biggest security risk is related to your credentials. Unfortunately, it happens quite often that it happens quite regularly that the credentials of a mailbox are compromised on another platform, which can allow someone to access your Coinhouse to access your Coinhouse account. We encourage you to the following tips to minimise the risks associated with your credentials your credentials: Use a unique email address:

If you use an email address that will only be used to connect to our platform to connect to our platform, the risk of your email address being leaked will be greatly reduced.
However, if you do not wish to create a new email address we invite you to we invite you to check your email address on a site like "haveibeenpwned which will allow you to see if your personal data has already been leaked into a known data breach.

Use a unique password and change it regularly Using a unique password that is different from your other passwords minimises the risk associated with it. Use a unique password that is different from your other passwords to minimise the risk associated with it. We also recommend that you We also advise you to update it periodically, a password of 8 characters is 8 characters is considered secure for a few days, 12 characters for 90 days 12 characters for 90 days and 15 characters for one year.

Enable 2FA via Google Authenticator: The 2FA via Google Authenticator allows you to receive the 6-digit code authorising critical operations on your account via an application rather than by email. Even if your email is your email is leaked, the malicious person could not see this 6-digit the 6-digit code. To set up this feature, you can visit our visit our dedicated FAQ article.
The choice of crypto-currency
Today, there are more than 11,000 cryptocurrencies on the market. This which makes the investment decision more complex, especially as the majority of these crypto-currencies are destined to disappear in favour of more projects.
According to statistics, as many as 2,500 cryptocurrencies are declared as dead (abandoned or fraudulent) which represents almost 1 in 4 crypto out of 4.
Other analysts agree that the number is much higher and amounts to 1/3
-But what happens if a cryptocurrency disappears tomorrow? - "The answer is simple: your investment will also disappear !" That's why at Coinhouse we take this very seriously and only offer only the most promising projects on the market with solid fundamentals.

Cryptocurrencies are listed only after rigorous research by our analysts and all have by our analysts and all have strong fundamentals offering good potential returns over the long term. (See list of proposed crypto-currencies). proposed). Still not sure how to build your portfolio ? Go here to find out which portfolio allocation best suits your to your investor profile!
Beware of false promises
As with any other investment, you should always be aware of frauds and scams. Although cryptocurrencies are digital assets, the assets, the scams surrounding them are very real and can cause financial can cause financial losses amounting to tens of thousands of euros. of euros.

Here are a few things that can easily identify these scams Cold call: If you receive a cold call or even several cold calls inviting you to invest in crypto cold calls inviting you to invest in crypto, this should be a red flag. to your ear. Chances are that your phone number has been been posted on a database accessible by a variety of scammers.

Investing through a platform other than their own: If the person you are talking to invites you to invest on their platform, you can invest on their website. If the person on the other end of the phone invites you to invest on their platform by sending them Bitcoin from a platform they don't own, cut off contact with them platform, cut off contact with them immediately. There is a very high chances that they are trying to steal your funds.
Using MetaTrader5: Many scammers will offer you interface based on Metatrader5 that allows them to manipulate the values values on your "portfolio", making you believe that you have made a phenomenal you have made a phenomenal gain.
Promises of high returns: Most scammers will offer you returns of hundreds to returns ranging from hundreds to thousands of percent.
This is of course unrealistic and misleading, the cryptocurrency world volatile and no serious player will offer you guaranteed returns. guaranteed returns. Installing an application to control your device device: An AMF-registered and well-supervised player will never ask you to will never ask you to install an application to manipulate your device. your device. These applications pose a real compliance risk and using them to make investments goes against the RGPD guidelines.

However, unscrupulous scammers invite you to install applications such as applications such as Anydesk or Teamviewer which give them full access to your to your device. They could very easily make a transfer money from your bank account to theirs or encourage you to create an account and create an account and go through the identity verification process.

To release your funds, you are asked to send cryptos or fiat currency to pay a fee currency to pay a fee: If you have already sent them funds to the If you have already sent funds to the scammers, it is too late to get them back. To minimise losses, cut off all contact with them and report them with the relevant authorities. Unfortunately, once the funds have been received by them, you will probably never see it again and they will stop and they will stop responding to you. Stay alert!

If you have any further questions, we are at your disposal !

Monday to Friday : from 9:30 to 18:00.


Articles in this section

Was this article helpful?
13 out of 14 found this helpful