Those have been getting Bitcoin well before the purchase price surge made an amazing fortune, but behind the riches are looming threats that are beyond hacking. The lives of some crypto investors were put threatened this past year, also, since then, the world population has seen exactly how dangerous it really is to be “crypto-wealthy.”

One of Russia’s leading Bitcoin experts, Pavel Lerner, was kidnapped on December 26, just a couple weeks shy with the Bitcoin price surge. He resurfaced on Dec. 29, 72 hrs after he was kidnapped by the list of masked men. Deutsche Welle?reports that Lerner was launched following kidnappers were paid millions of dollars in Bitcoin.

Lerner was targeted by the kidnappers possibly as a result of his understanding blockchain technology and the position as head of EXMO-a cryptocurrency exchange that accepts Cash, Euros and Russia’s ruble.

In another crypto security case, 35-year-old Louis Meza was indicted for stealing $1.8 million in Ethereum by the?New York County’s District Attorney’s Office. Surveillance footage shows Meza leaving the victim’s apartment that has a box containing hardware wallets which in fact had the Ethereum. Meza reportedly sees that his victim had $1.8 million in Ethereum understanding that his crime was orchestrated.

In solution to this harrowing account, cryptographer?Ian Grigg tweets, “Never ever ask someone just how much crypto they may have, or what crypto they have.”?

For those?prospering in cryptocurrency, the easiest way to protect themselves is through discretion. Refusing to reveal the total amount Bitcoin, Ethereum, or Ripple one owns goes far. Still, protecting ourselves and crypto assets are two very different things. Some investors go to extreme lengths to guard their wallets from hackers.

 

It’s don’t to disclose any here is how much Bitcoin or Ethereum one carries. (Source)

Securing a cryptocurrency wallet

“Grumpynitis” needs a number of precaution in order to safeguard his crypto assets, he said to?Coindesk. When he would place it, they have become “quite paranoid.”

Like the majority of the crypto rich, Grumpynitis takes extra stages in keeping his private keys safe. For him, to perform . ended up being embed an encrypted vault within a “innocent looking video,” he shares on?Reddit.?As an extra precaution, he keeps it inside a cloud storage while some off-site computers.

After a long time, he made a decision to utilize a cryptocurrency hardware wallet, the Ledger Nano S. When compared with keeping keys within an encrypted file, hardware wallets don’t expose any valuable data even though connected to a computer.

Being a security consultant for banks, he used his knowledge to help protect his new wallet. He generated a 24-word seed phrase that has been divided over waste paper. These papers are saved in safe places outside his home.

Although Grumpynitis’ precautionary methods could seem excessive for some people, there’s no doubt that he’s prepared for the worst and mitigated plenty of risk that include cryptocurrency investing. By preserve his wallet details securely hidden, he could sustain a low-profile from the crypto community as hackers and potential robbers are ill-informed of who they’re.

The rise of crypto

Bitcoin prices rose to new heights mid-December last year to be a single unit in the cryptocurrency reached an all-time $19,783.06 but dropped to $19,500 soon after, Fortune?reported. In?January 2017, Bitcoin prices settled at $1,150 each.

Although the buying price of the best currency has dwindled down to $7,000 after having a stellar performance way back in December, long-time investors like?the Winklevoss twins have elected quite a bit.?They used the $65 million they won inside of a lawsuit against Mark Zuckerberg and Facebook way back in 2011. Before the Winklevoss’ investment, a Bitcoin was worth $120. Now, the buying price of 1 unit sells for a lot more than $7,000.

On the additional hand, Ethereum is likewise gaining traction. Now being?more than $800, the second-leading cryptocurrency was only worth?$361.33 each in November.

As cryptocurrencies endure radical growth, investors should implement tight safety measures to stop becoming easy targets for hackers and robbers. Their assets will not be a common ones in jeopardy as the lives may also be in jeopardy whenever they get careless.