Online trading is a convenient way to earn a living, as technology has made it possible to execute your trades from any location. All you need is a smart device that can support the app or platform you trade from, and you have control over your investments.
However, the ease and convenience of trading remotely comes with its unique challenges due to growing online security concerns. In this article, we’ll outline five tips for staying safe when trading online.
The first step to securing your online trading activities is by using a virtual private network (VPN). It secures your connection by providing end-to-end encryption, helping to eliminate threats such as SSL stripping and man-in-the-middle attacks. Your network is arguably the biggest loophole to your security, and by using a secure VPN connection, it becomes harder for third parties to access your trading information or accounts. To learn more about the necessity of using a VPN and how to use it when trading online, you could visit this website for a detailed guide.
Among the things that investment training course providers will not tell you is that there are more people out there to take your money rather than help you attain your financial goals. Many trading applications and platforms are nothing but conduits for stealing from investors. Often these platforms look 100% legitimate, yet their underlying goal is to encourage you to invest more before they disappear with your hard-earned money.
Never be in a rush to trust any trading platform with your personal or banking information before you take time to vet their services and management. Avoid trading platforms that do not disclose important information, such as their management team, regulators, head office location, and financial reports.
You are the biggest loophole that cybercriminals rely on when they want to hack your trading accounts. The only way to stay safe is to practice good password hygiene by:
- Using strong passwords
- Avoiding reusing your passwords
- Enabling two-factor authentication
- Regularly changing your passwords
As an online trader, it is your mandate to protect yourself from internet fraudsters. Among the steps to take include:
- Never blindly invest
- Avoid the allure of making quick or easy money
- Research and verify all information you receive
- Beware of cheap trades and “high value” but unknown foreign companies
Make it mandatory to close all your trading sessions even if no one else uses your laptop or smartphone. Leaving your system open makes it easier for unauthorized parties to access your trading accounts. Apart from closing your trade positions and logging out of your accounts, you should also clear your cache each day to make it harder for hackers to access your trading information.
You can never be safe enough when trading online as you are always operating in a high-risk environment. However, you can minimize security risks by following these online safety tips while also keeping an eye out for emerging tactics used by online fraudsters to avoid their traps.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.