Is CoinTracker Safe? A Quick Overview

A poll from the first quarter of 2022 showed that one in five Americans had invested in cryptocurrency.

If you’re interested in adding crypto to your financial portfolio, then you’ve probably come across CoinTracker. It’s one of the most popular services for managing your crypto wallets as well as handling crypto taxes.

But there’s one issue that’s crossed your mind: is CoinTracker safe? The short answer is yes, but you’ve got to take a few precautions.

Here’s what you need to know:

Watch Out for Crypto Scams

As with any popular crypto company, there are many scammers who pretend to communicate via CoinTracker.

CoinTracker doesn’t hold any cryptocurrency for you. You might receive a message from a scammer encouraging you to make a crypto investment.

If you send them your crypto, you’ll lose your funds forever. The scary part is that hey’ll make an account within CoinTracker under your name. It’ll seem as if you’re sending money to your own account.

Please remember that CoinTracker only monitors public wallets. The service has no authority to control your crypto or handle transactions. Watch out for any scammers who claim to handle your crypto on your behalf via CoinTracker.

When creating a cryptocurrency portfolio, make sure you keep track of your public and private keys. You want to ensure that you never share your private key, as this lets anyone access your wallet.

Now, let’s look at some of the best practices to follow to protect yourself.

Best Practices for Protection

With CoinTracker and all other cryptocurrency services, you should use multi-factor authentication.

You should never allow anyone else to create an account on CoinTracker for you. Set aside time to create your own if you wish to use the services.

It’s also best to use a hardware wallet to store your cryptocurrency. These are physical devices where you’ll manage your crypto. This offers you more control than using a web exchange.

Make sure you back up your private key, public key, and recovery phrase. It’s best to never keep a digital copy. Keep a written copy in a safe area where no one else can find it.

When communicating with CoinTracker, always communicate through their official channels. Never use messaging systems such as Signal, WhatsApp, Telegram, or Viber for communication.

It’s also best to never disclose your cryptocurrency holdings. It’s often rude to ask, “How much Bitcoin do you have?”

The more others know about your crypto holdings, the more vulnerable you’ll be to attacks.

Is CoinTracker Safe? Now You Know

Now you know the answer to “Is CoinTracker safe?” It’s a safe platform that you can use to monitor your crypto investments. However, you must also take precautions to avoid potential scams.

There are many scammers who pretend to open a CoinTracker account on your behalf. They’ll ask you to send money to this account for investment purposes.

Make sure you follow our best practices to be safer. Use multi-factor authentication, invest in hardware wallets, and always communicate via official channels.

If you want even more great crypto tips, you’ll find them on our blog.