Maintaining Security in the Era of Digital Currency

by Brad Garland

Digital currency services allow for low-cost and efficient money transfers through highly secure channels. This technology helps transform the way people make online purchases, share money, and conduct e-commerce. Although you take advantage of numerous benefits, it is still important to protect yourself and your business. The following article will inform you of digital currency service developments and how to utilize this technology in the safest manner in digital currency bitcoin

Digital Currency Platforms Gaining in Popularity

Services like Venmo, Paypal, and Facebook have expanded the popularity of digital currency transfers and led to their widespread use. This technology offers you the following:

  • No merchant fees, helping to increase a company’s bottom line
  • No intermediaries, which means there are fewer chances for fraud
  • No disclosure of personal financial data at time of purchase, making it safer for you to use

It is important, however, to know the difference between the currency transferred via those popularized services and the currency of Bitcoin. Bitcoin is a digital crypto-currency whose value is determined by how much people are willing to use it, similar to many currencies in the real world. But unlike currencies exchanged using Paypal and Venmo, it is unregulated by a central bank.


Understanding the Benefits Versus the Risks

Digital currency transfers have evolved into a highly secure method for your online business transactions. At the March 2015 Florida International Bankers Association’s Anti-Money Laundering Compliance Conference, Gene Truono, chief compliance officer at PayPal, noted that digital currency is similar to paying with cash. He discussed that while there are risks to you with this transaction form, these risks are comparable to the ones associated with any currency.

Furthermore, digital money transfers allow for anonymity, timeliness, and extremely low currency costs, making digital money transfers an attractive option for your cross-border commerce.

However, risks are inevitable, particularly in the online black marketplace. While most digital currency security breaches deal with Bitcoin, such as the recent $20 million heist involved with drug marketplace Evolution Market’s exit from the darknet, conscious consideration of risk is necessary with any digital currency transfer.

At TechMecca, an annual financial institution technology conference and expo in Dallas, several keynote speakers explained risks involved with digital currency and the potential downfalls of digital exchange tools. Despite the benefits, these services can take away revenue from traditional banks and move them further away from their customers.


Be Smart and Stay Secure

The first step to ensuring your security is to keep your money offline. This step basically means turning off your device when not in use and storing your digital currency apps in a password-protected hard drive. This is the equivalent of not leaving your money hanging out of your wallet or purse, and it helps add a layer of security.

When using digital money transfer services, keep your log in credentials and passwords secure and complex. Select difficult-to-guess passwords, and try to make each password unique for each service you use.

Furthermore, it is important to ensure that news reports and skeptics don’t deter you from experiencing the benefits of digital currency. These services are well-established, and they continue to provide convenient and low-cost transaction methods for millions of people and businesses worldwide. Keep your wits about you, and treat digital currency the same way you treat any other currency. This focus will ensure you continue to have a positive experience with digital currency transactions.

Digital currency technology is expected to advance further, opening up opportunities to make purchases from mobile phones, personal computers, and even tech wearable devices like smart watches. Businesses and individuals, embracing this technology as it develops, will be poised to gain from these advances in the future.

If you have any questions or would like to know more about secure digital currency, please feel free to contact us -- we would love to chat with you.