In the wake of the exploding popularity of cryptocurrencies, malware and hacking attacks targeting digital wallets and exchanges have been on the rise. As more and more people look to cash in on the cryptocurrency craze, it’s important to be aware of the risks associated with these digital assets.
For many newcomers, understanding crypto is in itself already daunting. Taking on crypto security might seem like too much, but the truth is that keeping your digital assets safe doesn’t have to be complicated. A safe way to store Bitcoin or other coins should be similar to how you safeguard your traditional assets.
Here are six basic cryptocurrency security measures that every user should take:
Keep Most of Your Crypto in a Cold Wallet
Cyberattacks are on the rise, and online wallets are a prime target for hackers. That’s why it’s important to keep the majority of your cryptocurrency in a cold wallet—an offline storage option that is much less likely to be hacked.
Offline wallets are also known as physical wallets or hardware wallets. They usually come in a USB drive and can be stored in much the same manner as you would gold or cash. You can keep your cold wallet in a bank deposit box, at home, or even in your office—as long as it’s not connected to the internet.
While offline wallets are much more secure, you may still need to use an online wallet for certain transactions. Sometimes you may want to gamble online. If so you’ll want to find the best bitcoin casino. For these instances, only keep a small amount of cryptocurrency in your online wallet. This way, even if your online wallet is hacked, you won’t lose all of your crypto.
Stay Away from Provider-Hosted Wallets
Despite its convenience, using provider-hosted wallets is a no-go for most crypto traders. These wallets are stored on the provider’s servers, which leaves them vulnerable to cyber-attacks, government takeovers, and other legal risks. If the provider runs out of business, your private key—-and coins—-could be lost forever.
If you must use a provider-hosted wallet, make sure to only store small amounts of coins that you plan on using immediately.
Never Share the Private Key
A private key is the last barrier of security between your crypto wallet and the rest of the world. It’s what allows you to access and spend your cryptocurrency, so it’s important to keep it safe. The only way to do that is by never sharing it with anyone.
If someone has your private key, they have full access to your wallet and can take your crypto without you ever knowing. So, even if someone you trust asks for your key, don’t give it to them. The only person who should ever have access to your private key is you.
We suggest storing your private key in a safe place and removing all digital traces of it. That way, even if your computer is hacked, your key will be safe.
Use Several Wallets and Passwords
By having different wallets for different cryptocurrencies, you can minimize the impact if one wallet is compromised. In addition, using multiple passwords will help to keep your accounts more secure.
Many people use the same password for all of their accounts, but this is not recommended. If one account is hacked, all of your accounts are now vulnerable. Creating different passwords makes it more difficult for hackers to access your information.
If managing several wallets and passwords is a bit too much for you, consider using a password manager. This can help to keep track of your passwords and make it easier for you to create strong passwords.
Designate a Crypto-Only Device
For most people, we suggest designating just one device for all their crypto transactions. This helps to keep track of all activity and reduces the risk of losing any coins or tokens.
Additionally, using a single device makes it easier to monitor for suspicious activity. If you notice any strange activity, you can take appropriate steps to secure your account—-something that could escape your notice with several wallets to track.
This piece of advice will not work for everyone. Day-traders, for example, won’t dream of just having one device for their crypto activities. But if you’re not trading frequently, we recommend sticking to this rule until you become more familiar with the wide world of crypto scams.
Keep Up with the Latest Crypto Developments
News in the crypto world moves fast. So it’s important to stay up-to-date with the latest developments, whether it’s a new coin on the market or an exchange hack. This will help you make informed decisions about which coins and wallets to use. You’ll also get a heads-up on possible scams. The best way to stay informed is to follow news and discussion sites dedicated to crypto.
If you have friends also interested in crypto, start a group chat or join a forum to discuss the latest news. Twitter is also a great resource for following industry leaders and influencers. Our tech articles are a good place to start your research.
You’ll still have to make the final decision about which coins to invest in and how to store them, but being up-to-date with the latest news will help you make better choices.
Jumping straight into the world of cryptocurrency can be overwhelming. But by following these simple security measures, you can minimize your risk and have peace of mind. While there’s no such thing as guaranteed security in the crypto world, following these measures will help to keep your coins and tokens safe. So you can focus on what’s really important: making money!