Cryptocurrency is a relatively new concept. Good knowledge is required to transact using crypto. This area is growing rapidly and is becoming very popular. At the same time, hackers have begun to resort to new methods to create misery and steal all currency. But it is possible to provide protection in digital currency to avoid massive losses. This article deals with the part about cryptocurrency that talks about protecting them from malicious attacks. The concept of Liquidity Pool Locker is also discussed in detail below.
We can define cryptocurrency as a digital token that can be secured through cryptography. We can consider it as a digital resource. Cryptocurrencies have faced a lot of reactions and controversy for multiple reasons. These factors mainly include their use for illegal activity and their vulnerability to malicious attacks. At the same time, they have been acclaimed for a variety of reasons, including their transparency, portability, and so on. Bitcoin is the most popular form of cryptocurrency.
How to protect cryptocurrency?
As mentioned earlier, cryptocurrency is a new market. However, this does not make it less risky for hacking and theft incidents. Therefore, protecting digital currency has become very necessary. There are various instances where people have faced malicious attacks.
Such attacks lead to the loss of several cryptocurrencies. Those who hack these accounts disappear from the Internet and become impossible to identify. They also carry a lot of digital currency with them.
One of the best ways to protect your digital currency is to use a wallet. There were basically two types of wallets. Nowadays new designs are also being introduced. Of all these options, the physical wallet should be the best option. These are also called hardware wallets. They have a password they need to know to access the tokens. These hardware wallets also have a big drawback. If the user loses or forgets the password, they will not be able to access the token in any other way.
In addition to these, there is also a paper wallet, which is an online wallet.
Users should always use strong passwords and never share their secret keys.
Why would we use a liquidity pool locker?
Cryptex is a type of liquidity pool locker. A liquidity pool locker allows users to store their tokens under a smart contract. Under this agreement, they cannot transfer tokens from the start date to the end date specified in the agreement. There are several such lockers, and some of them are very reputable. Because of such restrictions, currencies are safe and sound and they are not vulnerable to malicious attacks. The user can customize the duration and then save the LP token. These lockers do not occupy tokens, their job is to keep them safe for the period specified under the smart contract.
Of all the strategies, Liquidity Pool Locker is the most effective. It is not as risky as a cold wallet.
If an individual (developer) does not own LP tokens, they cannot claim a refund of pool funds at any time.