With Bitcoin and several other cryptocurrencies reaching new all-time highs as of late, many have a newfound interest in digital assets. But before hitting the “buy” button, you may want to read up on a few ways to keep your cryptocurrencies safe and secure. By following a few steps, you can limit your exposure and make sure that your crypto journey is one that is fruitful and well protected.
First of all, it is important to remember that cryptocurrency needs to be secure and safe. By design, crypto transactions and ownership are built on a technology known as a blockchain. This makes them inherently more secure as blockchain technology relies on cryptography to achieve data security, therefore your personal data is safe because your private information is encrypted. The blockchain is also immutable (unchangeable), which means instances of fraud are very difficult to commit.
Despite the fact that they are designed to be secure, there are definitely specific things you can do in order to ensure that you keep your cryptocurrency safe. By taking these additional steps, you will ensure that you are not taking any chances when it comes to your investments. Here are some tips you may find useful.
1. Select the right wallet with the proper security features.
It is imperative to select the right type of wallet for yourself and to make sure that it has adequate security features. For example, a “cold wallet” might just be the most secure way to store your cryptocurrencies. Paper or hardware wallets are what are oftentimes referred to as cold wallets, and they are without a doubt the most secure type of digital wallets in the sense that they cannot be hacked since they are offline. Examples of an offline hardware wallet like a USB or a hard disk bypass storage on online exchanges, ensuring that hackers cannot steal your stored currency. In comparison to wallets that are stored online and on clouds, these wallets are offline and therefore cannot be accessed unless they are physically plugged in.
If you are someone who never loses anything, you can also opt for a paper wallet. A paper wallet is a piece of paper with a crypto address and a private key in the form of QR codes. This type of wallet is extremely resistant to hacking as it is offline and untraceable. If you are sure you will never lose this piece of paper, this offers great levels of security.
2. Never share your private keys or investments.
Particularly online, as those can be scams! Be sure to keep your keys and addresses safe and secure, sharing them with someone can mean compromising all your digital assets. There are also fake trading groups that are lurking online that promise high returns in exchange for membership fees paid out in cryptocurrencies. Beware of making any investment that appears dodgy or too good to be true.
3. Use multi-factor authentication
Using a strong, two-factor authentication method is vital when it comes to securing your wallet and your cryptocurrency. Additionally, opting to use a multi-signature or several keys to authorize transactions will greatly reduce any chances of fraud as this will add an extra layer of protection and make it nearly impossible for hackers and scammers to access your cryptocurrency.
4. Use a secure connection.
Since public Wi-Fi networks can be easily hacked or rigged to install malware on users’ devices, they are best avoided when it comes to your cryptocurrency. For additional doses of security, always be sure to access your account and wallet from a private and secure network that you trust like your home network.
5. Conduct software updates routinely
In order to benefit from all the cutting-edge safety features, it is vital that you update all your operating systems and wallets. A wallet that is running on non-updated software can make for a prime target for hackers. Software updates ensure that bug fixes and any possible security breaches are kept at bay, keeping your coins safe and your wallet happy. Be sure to also update your operating systems as ensuring that your own computers and networks are safe will beef up security as well.
Owning cryptocurrency is akin to being your own bank. This puts the onus of security and management (that is traditionally on banks) on the owner of the crypto. As cryptocurrency markets are in the midst of a major bull run with Bitcoin reaching a new all-time high, security concerns are more relevant than ever. All in all, we find that keeping your crypto safe can be as simple as selecting the proper kind of wallet and ensuring that you do not share your private keys and information with anyone. By following these steps, you can help keep your digital coins safe.