8 Cybersecurity Tips for Traders in 2024: Staying Safe in the Digital Marketplace

The rising popularity of online trading, fueled by decentralized finance (DeFi) and accessible platforms, has also heightened cybersecurity concerns. As a result, securing private data and avoiding scams are now essential for maximizing profits. To assist new traders unfamiliar with cybersecurity strategies, we’ve compiled our list of 8 cybersecurity tips for traders to help safeguard your investments and boost your trading performance.

Top cybersecurity tips for traders

To reduce cybersecurity risks, traders should take some basic measures to safeguard their assets and personal information. Here are some of the most important steps you can take to increase the safety of your traders:

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1. Use a virtual private network (VPN)

Setting up a VPN is essential If you are forced to trade on public or unsecured Wi-Fi networks. A VPN is a software tool that creates a secure, encrypted connection between your device and the internet. This means you can trade with confidence anywhere, knowing your data is shielded from interception, unauthorized access, and monitoring by third parties.

Surfshark, our recommended VPN provider, offers both desktop and mobile apps and prioritizes user privacy by implementing strict no-logs policies and robust encryption protocols. In addition, it can help you mask your geographical location, create a dedicated IP, and make your trading traffic appear as old, allowing you access platforms otherwise locked in your region. 

You can also activate a kill switch, so that your internet access is cut off in case the VPN connection drops. 

As of the time of writing (Q3 2024), new users can get the two-year Surfshark plan for up to 86% off and get an additional three months for free.

2. Come up with strong, unique passwords and use biometrics

Strong, unique passwords for each trading platform or service you use are the foundation of trading security. Avoid following common patterns when coming up with passwords, and consider using a password manager to create complex strings of characters or write them down on a piece of paper. If your device and trading platform allow for it, make sure you also enable biometric log-ins and use fingerprint and facial scans to authorize trades.

3. Enable multi-factor authentication (MFA)

Enabling MFA adds an extra layer of security to your accounts. Even if an unauthorized third party somehow obtains your password(s), your data will still be safe, as they will need to pass an additional verification step, such as typing in a code sent to your phone or email, which they likely won’t be able to access. 

4. Keep your device updated

Keeping your device up to date is crucial, as even the smallest operating system updates typically involve security and privacy updates. In addition, make sure you also update your trading app if trading on mobile.

5. Backup your data

Regularly backing up your data — that means both trading records and personal information — will ensure you can recover your information in case of unforeseen cyberattacks or hardware failure. If possible, store backups offline on external drives.

6. Use offline wallets

If you’re trading cryptocurrencies, using offline wallets should be your top priority. Unlike online wallets, offline wallets are not connected to the internet, making them less vulnerable to hacking. 

7. Stay educated 

Phishing attacks and other kinds of scams are more common than ever. To stay safe, be cautious of unsolicited emails, sketchy messages, and shady links that ask for your login credentials, personal information, or similar info. Some cybersecurity companies, such as Surfshark, offer Alternative ID solutions to keep your email, number, and other personal information private and minimize the chance of malicious spam emails.

8. Use antivirus tools

Installing antivirus software on your devices is essential for detecting and preventing malware, viruses, and other cyber threats. Antivirus tools also provide real-time protection and notifications, scanning your system for suspicious activity and blocking harmful files before they can compromise your data.

For a more comprehensive discussion on Antivirus software, check out our Surfshark Antivirus review.

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Wrap-up

As digital trading continues to grow, so do the risks associated with cyber threats. By implementing the cybersecurity tips outlined above, traders can protect their assets and personal information, maintain secure access to their devices and portfolios, and avoid falling victim to marketing scams. Whether you’re a novice or an experienced trader, prioritizing cybersecurity is not optional — it’s the first step to every successful trade.

FAQs about cybersecurity tips

Why is cybersecurity important for traders?

Cybersecurity has become crucial for everyone, given that cyberattacks happen over 4,000 times daily. For traders, taking cybersecurity measures helps protect financial assets, personal information, and trading accounts from cyber threats such as hacking, phishing, and malware attacks. Without proper security measures, traders risk losing money, sensitive data, and access to trading platforms.

What are the best cybersecurity tips for traders?

The best cybersecurity tips for traders include using a VPN, coming up with strong passwords, using multi-factor authentication, updating your device, making backups of your data, using offline wallets, learning about the most common scams, and using antivirus tools to protect your devices.

How to protect your trading accounts?

You can protect your trading accounts by using strong, unique passwords, enabling Multi-Factor Authentication (MFA), regularly updating your devices and trading platforms, and staying educated on the most common scams. Additionally, avoid using public Wi-Fi networks without a VPN and install an Antivirus tool.

Is trading on public Wi-Fi networks risky?

Public Wi-Fi networks are often unsecured and thus vulnerable to cyberattacks. Hackers can intercept your data or access your accounts while you trade. A VPN helps encrypt your connection, reducing the risk of monitoring and data interception.

How much does it cost to use a VPN when trading?

There are both free and paid VPN options available, but it’s important to recognize that they can vary significantly in privacy, security, performance (such as speed), and the extra features they provide. On average, premium VPNs cost around $10 per month if you choose a monthly subscription. However, the price can fluctuate based on various factors, including the VPN’s features and capabilities, the length of your subscription, and the provider’s pricing policies.For more info, check out our guide on how much it costs to USE a VPN.