Since its all online, cryptocurrency faces a barrage of cybersecurity issues. Investors should keep certain precautions in mind, such as having resilient encryption and firewall networks on their computers and sticking with well-known platforms or a brokerage, advised Carter.
“Don’t invest in a company that is constantly is trying to contact you either from WhatsApp or Facebook groups. Five out of six websites won’t load, which means it’s blocked for fraudulent reasons. It is crucially important to be vigilant as so many people out there want to take your money. Cryptocurrency is the newest way of doing it as there is no way to track it, and there are no repercussions. And if it’s from another country, there is nothing anybody can do about it. It’s safer to invest if a bank is backing a cryptocurrency, but even then, investors would have to see if the bank will continue to back it if the market fluctuates,” he said.
Today, several banks are testing and marketing cryptocurrency for digital transactions. He emphasised: “For instance, Electronic Fund Transfers (EFT) are a form of digital currency not based on a monetary system. So, banks are trying to implement that type of system with cryptocurrency and are experimenting with it. Countries are doing it as well.”
