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Online gambling is always quick to adapt to new technology to keep up with consumer demands. So, it makes sense that blockchain technology and cryptocurrency are market shakers in iGaming. Around 2012 when virtual coins became viable payment alternatives on gambling websites, only a handful of operators provided them. Now, even reputable global brands support crypto transactions for gambling. In New Zealand, where cryptocurrency is not illegal, gamblers can use different digital currencies to play on a host of licensed offshore casinos. Over the past several years, the number of players using cryptocurrency for gambling has increased.
Despite the rising use of Bitcoin and altcoins, not many people understand how the technology works. Security is one aspect some crypto holders and gamblers take for granted. Since the first coin was released, cryptocurrency has been marketed as safer than fiat or traditional payment methods. Most cryptocurrency networks are inherently secure by design, but it doesn’t mean they don’t have risks. As blockchain payments become more popular, learning how safe they are is vital. Educate yourself on the factors that influence crypto security. Additionally, you should know how to protect yourself to guarantee enriching casino gaming experiences.
The Potential Dangers of Using Digital Coins
Before looking up the best rated crypto casinos in New Zealand, you should be aware of the potential security issues they come with.
Blockchain Attacks
The blockchain is a decentralised network, meaning it has no central authority. Records are immutable and open to the public, which ensures transparency. Although the blockchain, by design, makes it difficult for hackers to get through, it’s not immune to attacks. As a cryptocurrency holder, you should understand that the blockchain is not impenetrable. DDoS attacks are the most prevalent threats. They involve hackers flooding the system with malicious traffic to impede valid transactions. Sybil, double-spend and 51% attacks are other ways bad actors target the blockchain.
Threats to Exchanges
As a cryptocurrency user, you must watch out for hacking, fraud and theft. Coin exchanges have become big targets for cybercriminals because, as online entities, they have their vulnerabilities. When gambling with cryptocurrency, you require an exchange to buy and sell your assets. In New Zealand, crypto exchanges are regulated businesses, since they fall under financial services. Therefore, they are required to have security measures to protect customers. Hackers, however, can still find ways to exploit any holes in an exchange’s system. Several coin exchange services have suffered data breaches that left asset holders without their funds. Many crypto holders prefer to use the online wallets that exchanges offer because they are convenient. If you gamble regularly, then you need quick access to funds. However, having an exchange hold your coins means accepting the threats it deals with.
Coin Loss and Theft
As a cryptocurrency user, you could lose your investment in different ways. Phishing scams are common methods of stealing information that criminals can then use to acquire your coins. Malicious links in emails are the standard phishing procedure. Hackers can trick you into clicking on a link or downloading an app that infects your device, creating holes they can exploit. If you have your wallet on your desktop, then it becomes easy for criminals to get into it.
Ransomware is another way bad actors can compromise your device and steal your passwords. The software encrypts your details, and you have to pay to get the decryption key. Without your wallet password, your coins are useless.
You could also lose your coins if you misplaced the password. If you lose your credentials, it means not being able to operate your wallet ever. Cold storage, which is a physical wallet, comes with the risk of loss and theft. If your device is gone, so is the money.
Best Practices for Using Cryptocurrency
You can mitigate the risks digital coins come with through a few best practices. For starters, if you use a custodial wallet, select an exchange properly. Research coin exchanges thoroughly to make sure you only deal with legitimate businesses. In New Zealand, a crypto exchange must have a licence from the Financial Markets Authority (FMCA). Check records to see a company’s history. Has the exchange been hacked before? How did it respond? Read customer testimonials to gauge the service quality. Also, avoid leaving all your assets on one exchange, especially if it’s worth a significant amount.
Be careful of the gambling sites where you choose to play. Fake platforms are easy avenues for data mining and theft. Therefore, make certain an operator holds a valid licence. Look at the URL to see if it’s an encrypted website.
Use strong passwords on your wallets. Don’t make it easy for hackers to guess your credentials. Activate two-factor authentication on crypto exchanges and casinos to provide an extra security layer for your accounts. You should also be careful not to download malicious software or click on suspicious links.
Consider using a hardware wallet, particularly for a large number of coins. Keeping your coins and private keys offline eliminates most of the threats highlighted. Nonetheless, be cautious about where you keep your wallet to avoid losing it.
Gambling with cryptocurrency means fast transactions, low fees and improved privacy. Despite these benefits, digital coins are not without their issues. If you decide to play at New Zealand crypto casinos, learn the risks of using virtual currency as payment. Regardless of how secure a coin says it is, understand the related dangers it comes with and how to stay safe.
Disclaimer: Any information written in this press release or sponsored post does not constitute investment advice. Thecoinrepublic.com does not, and will not endorse any information on any company or individual on this page. Readers are encouraged to make their own research and make any actions based on their own findings and not from any content written in this press release or sponsored post. Thecoinrepublic.com is and will not be responsible for any damage or loss caused directly or indirectly by the use of any content, product, or service mentioned in this press release or sponsored post.
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