In today’s digital economy, more and more assets are going online. More people are turning to cloud services and digital wallets to store their money, while governments worldwide are making big efforts to digitize national currencies. For investors, the transition comes with many opportunities – but also unique risks.
As you begin to take on more and more digital assets, it’s important to understand the risks involved – and how to protect yourself.
Defining Digital Assets
A digital asset is a physical asset that can be managed and owned through electronic means, such as the Internet.
As long as it is under an individual’s control, a digital asset has value. Digital assets include digital currency, domain names, accounts receivable, and intellectual property.
Some digital assets are more recognizable than others. For example, cryptocurrency such as Bitcoin or Ether, tokens issued by pre-sales and ICOs, virtual currency wallets, website URLs, domain names, and account receivables.
How to Protect Your Digital Assets
In the digital age, new risks have emerged that investors need to be aware of. Here are some tips on how to protect your digital assets and ensure their security.
- Select the Right Platform for Your Digital Financial Assets
Every platform is not created equally. When choosing a platform to store and manage your digital financial assets, look for one that is easy to use, has a reliable security system, and comes with multiple layers of protection.
- Use a Wallet That Shifts Control From the User
No matter what platform you choose for storing your digital financial assets, make sure that it shifts control from the user to the company itself.
- Take Advantage of Two-Factor Authentication
Two-factor authentication, or 2FA, adds another layer of security to your digital assets. Not only will you need a password to access certain accounts, but the company itself may send you a code via text message as well.
- Monitor Your Digital Financial Assets and Report Suspicious Activity
It’s important to keep an eye on your digital assets, even after they have been transferred. Ensure that they are in a safe place and regularly check for suspicious activity or unauthorized access attempts.
Protect Your Assets and Enjoy Digital Convenience
Now that you have a better understanding of how to identify your financial assets on the Internet, it’s time to take advantage of these new benefits!