Is it safe to connect your crypto account to a portfolio tracker?
If you have a well-known portfolio tracker that uses a secure API, it’s probably safe. But there is always a risk that the tracker will be hacked. So be aware and read carefully about the organization behind the tracker first.
To allow machine-to-machine communication, most exchanges have developed an API (Application Program Interface). An API, in technical terms, is a set of endpoints exposed over the HTTP protocol (HyperText Transfer Protocol) to gather information or order that such acts be performed. Is this safe? Yes, since the HTTP protocol is identical to the one used when you open your favorite browser and log into an exchange website.
As trackers bind to an exchange, they use an extension of the HTTP protocol known as HTTPS rather than the standard HTTP protocol (HTTP Secure). When you use HTTP, all of the data is sent in plain text through the network. When you use HTTPS, the data is encrypted using the certificate that each exchange provides. Again, the degree of protection is the same as when communicating to a browser.
It is essential to authenticate when connecting to an API. As a result, safe wallets will request an API key from you. Your key informs the exchange that we are linked by your profile.
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Since the mechanism isn’t flawless, it’s likely that the information could be stolen or revealed while you sell cryptocurrencies. The only thing you can do is be aware of the dangers and take sufficient precautions to stop them.
Following that, you must ensure that you are using a stable portfolio tracker. This is the only way to keep track of your new cryptocurrency assets and make educated choices on purchasing and selling cryptocurrency depending on market conditions.
Is it secure?
It depends on the tracker. Portfolio trackers have access to your data and can monitor your movements. They can use your data in the same way as other websites do. They may not be behaving maliciously or with the intention of misusing your records.
However, since one of the primary motivations for using cryptocurrencies is to protect one’s anonymity, anyone using a tracker that monitors them should be wary.
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