What is cryptocurrency dust?
No matter if you are an advanced trader or you just started your journey to the world of cryptocurrency, you probably have some crypto dust in your wallet. Frequently traders have such a small amount of cryptocurrency dust after a transaction that it is insufficient even to cover the commission. Although crypto dust is not harmful, it can cause some serious issues in the context of privacy. In this article, you will learn how you can profit from little cryptocurrency remains.
Most crypto holders should not be concerned with cryptocurrency dust, but it is a good idea to understand what those small quantities are in your wallet and how they accumulate. First of all, crypto dust is an extremely small amount of coins stored in your cryptocurrency wallet. Because the amount of dust is usually so tiny, sometimes people just ignore it. One hundred millionth of a bitcoin, for example, is referred to as a satoshi. Thus, one Satoshi is equal to 0.00000001 Bitcoin. By the way, it’s a good investment idea if you don’t want to put a lot of money into bitcoin. Purchasing some BTC particles makes crypto investment more affordable for everyone because you do not have to invest a large part of your savings.
Furthermore, trading such little sums of coins on the exchange is impossible because such amounts are frequently less than the commission for exchanging the cryptocurrency. Thus, Binance exchange has devised a solution for investors by providing the service to convert cryptocurrency dust into Binance coin (BNB). Almost all active traders have accumulated some stocks of dust during their trading. Thus, converting cryptocurrency dust into a Binance token (BNB) for eventual commission payment is an excellent strategy to save money. However, this feature is also accessible on many other cryptocurrency exchange platforms!
Can cryptocurrency dust be dangerous for traders?
In the digital environment, there are many varieties of malicious attacks, especially in the crypto sector. At the same time, hackers often use crypto dust in a way to disclose confidentiality. This new kind of malicious cyberattack is referred to as a dusting attack. Hackers send crypto dust to a huge number of wallets on a specific cryptocurrency network, then follow their transactions, allowing them to link addresses and finally identify their owners. This information is then used to plan phishing attacks or to blackmail huge corporations into disclosing their identities. In this way, hackers benefit from the blockchain’s advantages, such as transparency. Safe yourself from dusting attacks by following simple rules:
● Use wallets with a high level of privacy;
● If you have already some crypto dust on your balance, use crypto mixer services since they break the sequence of transactions. As a result, hackers are not able to trace the dust;
● Finally, just block the receiving option for such transactions.
In conclusion, the bitcoin blockchain does not provide complete anonymity. However, the current level of that is far higher than that of any other cryptocurrency. As we can see, the Dust attacks are the clearest example of blockchain shortcomings. From this point, the user is fully responsible for the security of his crypto funds. Therefore, the more you know, the better your odds of keeping your crypto wallet safe.
Use the European bit4you trading platform to ensure that you have access to the most comprehensive variety of services, including buying, selling, trading, and exchanging crypto, as well as wallet management. Using the bit4you demo mode will allow you to gain a thorough understanding of the crypto-currency market while being risk-free. If quick transaction confirmation and high transaction speed are important to you, the bit4you platform is a perfect choice.
Valentina BEREZA, Team bit4you