Investing in cryptocurrency? Lock down your wallets.

Getty Images

Securing your cryptocurrency might seem like a daunting task. For the uninitiated, the learning curve includes hot and cold wallets, online exchanges and private keys.

Digital security experts warn that you shouldn’t skimp on your studies, particularly of the hardware and software wallets used to store data that proves ownership of cryptocurrencies. Unlike a stolen credit card number, which can be an inconvenient but surmountable problem, pilfered cryptocurrency is often simply lost because of the decentralized nature of many digital coins.

If you run into problems, you may have no one to turn to.  

Hackers are attracted to cryptocurrency because it can be stolen over the internet, which means victims are often far away in different countries. Even if identified, hackers can be in countries — think Russia — that make extradition difficult, so the threat of punishment is low. And cryptocurrency is hard, though not impossible, to trace.

Cryptocurrency comes with…

Read more…