The cryptocurrency industry offers immense potential—but also comes with a steep learning curve and real risk. Security is one area where even experienced investors can fall short, often due to simple mistakes or misplaced trust. In a digital environment where you are your own bank, understanding and implementing strong security measures is non-negotiable.
Here are the five most common security mistakes in crypto investing—and how to avoid them.
1. Storing Funds on Exchanges
“Not your keys, not your coins” is more than a slogan—it’s a foundational truth in crypto. Storing large sums on centralized exchanges may be convenient, but it’s also risky. Exchanges are attractive targets for hackers and can freeze access during technical issues or regulatory pressure.
How to avoid it: Use a reputable, insured custody service that gives you full visibility and control over your assets. At Fintech Plus, our institutional-grade custody includes cold storage, MPC technology, and 24/7 monitoring to eliminate single points of failure.
2. Poor Password Hygiene
Reusing passwords, storing them in unsecured files, or using easily guessed phrases is a fast track to compromise. Credential stuffing and brute-force attacks are rampant in crypto.
How to avoid it: Use a password manager to generate and store unique, strong passwords for each service. Combine this with multi-factor authentication for enhanced protection.
3. Lack of 2FA and Biometric Security
Two-factor authentication (2FA) and biometric logins add critical layers of protection to your accounts. Without them, a stolen password could lead to a complete takeover of your wallet or exchange access.
How to avoid it: Always enable 2FA (preferably using an authenticator app, not SMS) and use biometric access (like fingerprint or face ID) on mobile wallets and custody apps. Fintech Plus enforces advanced authentication protocols by default.
4. Ignoring Phishing Threats
Phishing remains one of the most effective and dangerous attack vectors. These scams trick users into revealing credentials by mimicking trusted platforms or sending fake transaction alerts.
How to avoid it: Always double-check URLs, avoid clicking suspicious links, and verify sender email addresses. Bookmark trusted platforms and use email security tools when possible.
5. No Recovery Plan
Many investors fail to plan for loss of access, whether due to lost devices, forgotten keys, or unexpected life events. This oversight can result in permanent loss of funds.
How to avoid it: Create a secure backup protocol. Store recovery phrases offline in secure, fireproof locations. Use custody solutions that offer robust recovery and access control frameworks.
How Fintech Plus Helps
At Fintech Plus, we take the burden of security off your shoulders. Our custody infrastructure features:
- Biometric and multi-layer authentication
- MPC-based key management with geo-distribution
- Cold storage with disaster recovery protocols
- Real-time threat monitoring and anomaly detection
We help you invest securely, with institutional-level peace of mind.
Security in crypto isn’t a one-time action—it’s a continuous commitment. Avoiding these five common mistakes can save you from irreversible losses and protect your long-term wealth.
With the right platform and proactive planning, crypto investing becomes not only profitable—but also secure. Fintech Plus is here to make sure of it.