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Top Ways to Ensure Security of Cryptocurrency Assets

by: The Tech Fools


This article is a guest post and are of the writers’ personal opinions and do not in any way reflect ProButterfly.com's or REITScreener.com's official opinion. ProButterfly.com does not issue a buy or sell recommendation on any security, and any research paper or articles published by ProButterfly.com is purely for informative and educational purposes only.


Cryptocurrency has come a long way since the first-ever decentralized token, the Bitcoin, was created shortly over a decade ago. In December 2017, Bitcoin experienced a shocking rise in price, and that gave birth to the rise of many other utility tokens today. Using cryptographic techniques, these digital entities are mined and distributed electronically to their holders.

Many would wonder why such a medium of exchange is thriving despite the fiat currencies we have. The answer is simple, the network upon which transactions amongst currencies are recorded, the Blockchain Network, affords a lot of benefits which the traditional systems don’t. Some of these are the fact that the network is very secure, it is transparent so all global transactions can be tracked and most importantly, it is immutable so the records cannot be altered.

Security Vulnerabilities associated with Cryptocurrencies

Despite the amazing security features cryptocurrencies and blockchain itself are touted to possess, many crypto holders and traders still face security threats in this supposedly “safe” ecosystem. Holding and trading cryptocurrencies come with its risk and explained below are a couple of them:

  • Exposure to hacks: Anything technology-based faces the risk of being hacked, and so do e-wallets where cryptocurrencies are stored. Hacking is a grave risk and investors have the potential of losing all of their assets if their account or wallet provider gets hacked. Because of the anonymity in wallet addresses, it is often difficult to track down the culprits and recover the funds.
  • Volatile Market: The prices of cryptocurrencies change regularly, ranging between prices based on market conditions and current sentiments. Due to this, it is unsure if a crypto holder might make a profit on their initial investment all the time. Some altcoins end up experiencing low liquidity, rendering its token useless.
  • Insufficient Regulation: Decentralization and independence from central control are a couple of the things that make cryptocurrencies thrilling. However, the lack of regulation allows for several fraudulent practices to occur using cryptocurrencies. This especially creates room for worry amongst investors.

Keeping your Crypto Assets Safe

There are several other security risks associated with the cryptocurrency space. However, the knowledge of these risks would not be useful without one or more effective ways to stay safe from them. Explained below are a number of them:

  • Trade with Regulated Exchanges: For a lot of exchanges to be allowed to operate in a lot of countries, they had to agree to be regulated by the financial regulatory body of such a country. This is majorly to ensure compliance with best practices to ensure the security of their customers’ funds.
  • Use a VPN: Asides the traditional benefit of a VPN which is to change users’ IP address, they also have encryption properties which help secure users’ details as they are transported from the users’ PC to the communicating server. The cost of buying a VPN to ensure secure transactions is rather inconsequential to the amount that could be lost if personal account details are lost.
  • Use Offline Wallets: As mentioned earlier, things that aren’t connected to the Internet are relatively safer than those that are. Experts advise that storing cryptocurrency tokens on hardware wallets is much safer than storing them online. These wallets such as Trezor and Ledger Nano S are secured with an 8-digit pin and have a backup of 24 words that can be used to access the wallet if the pin is forgotten.
  • Use Password Managers: Another reason why people lose their funds is forgetting private keys. For ERC-20 tokens especially, these private keys are used to access a wallet. Unlike email that can be retrieved and password that can be reset, private keys cannot be retrieved, and if lost, the account is gone, along with the funds in it.

Final Notes

The blockchain network remains undoubtedly secure, but this alone isn’t enough to keep the cryptocurrency ecosystem at a hack-proof state. Exchanges might try as much as possible to secure their network, but the onus still lies on individuals to take their asset security as seriously as possible.

At ProButterflyTM, we encourage all our readers and subscribers to dabble a little into the cryptocurrency space as we believe that asset class has a long term potential and the wave has only just started. We encourage you to read our introduction to blockchains and cryptocurrencies as the following links:-

Positioning to Ride the Recovery

Opportunities and Risk Post-COVID-19 Pandemic in the S-REIT Sectors

The COVID-19 crisis has brought about an unprecedented economic shock to many sectors, and yet it has also generated opportunities in others.

The tech sector has been a major beneficiary and along with that, S-REITs exposed to the Data Centre sector such as Keppel DC REIT and Mapletree Industrial Trust gained phenomenally.

But are the investment opportunities in REITs now gone? Personally, we do not think so. There are still many REITs below their pre-COVID-19 levels poise to recover strongly in the coming quarters – and now it is the best time to prepare to capture the post-COVID recovery.

Join us as we discuss the opportunities and risk in the S-REIT space sector-by-sector as we try to uncover recovery opportunities for FY2021 and beyond. Real estate sectors that we will be covering include the Retail, Hospitality, Offices, Healthcare, Industrial and Data Centres.

Our speaker Tam Ging Wien will be sharing his knowledge and experience including:

  • Part 1: A Survey of the REITs Landscape Around The World
  • Part 2: Key Metrics in Identifying Strong REITs
  • Part 3: Real Estate Sector Review Amidst the COVID Crisis
  • Part 4: Screening for Opportunities
  • Part 5: Q&A

Some key highlights that will be covered includes:

  • Real estate sector-by-sector review on COVID-19 impact and recovery opportunities. Sectors covered include the Retail, Hospitality, Offices, Healthcare, Industrial and Data Centres.
  • Opinion on which sector will continue to stay resilient and which are poised to recover quickly post-pandemic
  • The right metric to use when screening for high quality REITs
  • Case studies of REITs which are considered high quality
  • Step-by-step demo of how to screen for high quality REITs on your own

During the sharing session, various Singapore-listed REIT examples will be used.

There will also be a Q&A so that members of the investing community may engage in open dialog and discussions in order to deepen their understanding of REITs. Do prepare your writing materials for note taking.

Please note that the duration of the webinar is 7pm to 9:15pm Singapore Time (GMT +8).

The webinar will be conducted over Zoom, we recommend that you download the Zoom App for the best viewing experience.

To learn more about REITs, we recommend the article: What are REITs?

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