Regardless of where you stay, leaving a bill worth $100 on a park bench will most likely bring you huge losses. With digital currency the scenario will be no different. Despite their virtual nature, not taking required precautions can put your hard earned money in danger. In this article, we will see how to ensure your cryptocurrency security.
How Can You Ensure Your Cryptocurrency Security In Easy Steps?
In contrast to the famous belief, safeguarding your digital currency is not something that is attained by simply storing your funds with any secured third part. From the point of view of cybersecurity, attacking an end user is easier than running after entities.
As per a recent study by the University of Maryland, there is one hacker who attacks every 39 seconds. And among those attacks, one out of three are successful. To make sure that you do not fall into this trap ensuring your cryptocurrency security is very crucial. Follow the below mentioned steps to protect your cryptos from hack.
In the list that have been mentioned below, you will find the ideal easy-to-implement tips that guarantee the safety of your cryptos. So let us begin.
1. Choose A Reliable Crypto Wallet
Similar to fiat currency, there are varied types of crypto wallets you can use to keep your virtual currencies. As you would want, each type of crypto wallet arrives with specific advantages and disadvantages attached. Here is a quick overview of those types:
- Hot wallets: These wallets are associated with the Internet, which raises their exposure to all kinds of cyberthreats. Since they are always online, availing funds is quick and convenient. These wallets are usually provided by exchange platforms.
- Cold wallets: These crypto wallets are offline, implying they cannot be hacked. This is a valid choice for those who require extreme cryptocurrency security. Typically, they come in the form of paper and hardware wallets. Ledger is among the best players in that market.
- Warm wallets: These are the mixture of the best features of both hot and cold wallets. They are online, provide a wide range of services, user-friendly, but funds are kept in cold storage. The Crypterium Wallet is a great example of this type.
2. Activate 2FA (two-factor authentication)
2FA (Two-factor authentication), also called multi factor authentication, is an added layer of security for your digital currencies. The concept is simple: every time you do an action that puts your money at risk, the system automatically wants to verify it is really you.
To stop someone who gained access to your account from easily withdrawing the funds, the system will request an added security code to grant the transaction. The code is unique, and it is sent to the phone number or email address that is linked to the account.
3. Create Seriously Strong Codes And Passwords
No matter which type of cryptocurrency wallet you are using to keep your crypto, most of them need you to set some sort of PIN or password. Those codes are your initial line of defense, and formulating them should not be taken lightly.
A few points to consider:
- Use a combination of numbers, letters, and symbols
- Avoid passwords that are used for other services or platforms
- Make them at least 8 characters long
- Do not use personal data to create them
- Never share your cryptocurrency security key, not even with family or friends
- Instead of printing them, you can use avail a password manager
4. Withdraw Cryptos From Your Cryptocurrency Exchange
Picking the ideal cryptocurrency wallet will largely vary on your personal requirements. However, from a security point of view it is highly suggested to avoid hot wallets.
Most of the digital currency exchanges keep funds online, which makes them the target of various attacks. And despite the efforts to safeguard them, something simply doesn’t work.
5. Double-Check Emails, Websites, And Text Messages
There are many varied ways to hack a crypto wallet. One of the most famous, and successful hacking techniques is phishing a cybercrime aimed at obtaining the passwords or codes from the user itself. How? Through the help of social engineering.
Hackers aim to contact you by telephone, email, or text messages as if they are representatives of an entity. In this case, your crypto wallet service. So recheck the address from where the mail has been sent to, check the spelling. In case of calls, before taking any action, confirm by calling in their customer care number.
6. Use Mobile Internet Instead Of Public Wi-Fi
This is another important cryptocurrency security issue. You enter a coffee shop, and the first thing you ask for is the Wi-Fi password. And while that might not be a problem, you never really know who is behind that network or what are their aims. Connecting to public Wi-Fi comes with several risks associated with it, mainly if you are holding a sizable amount of crypto in your wallet. So if you have to make any transaction using the internet, always use your phone’s mobile data rather than any public Wi-Fi.
Virtual currencies are the future of money. And knowing how to safeguard your crypto from all forms of cyber threats is as crucial as never leaving your pocket wallet on a park bench. The tips above on cryptocurrency security will definitely put you on the right track. There are various cryptocurrency security companies who can also help you to keep your cryptos safe.