Do you really want to know How to Safeguard Your Cryptocurrency? Securing your crypto currency might not seem to be a very easy task but it is very necessary to prevent crypto losses from hackers and fraud.
Learning How to Safeguard Your Cryptocurrency requires that you know about the hardware and software wallets used to store data that proves the ownership of cryptocurrencies.
Cryptocurrencies Have a Higher Risk of Getting Stolen
Cryptocurrencies are simply stolen or lost because of the decentralized nature of many digital coins unlike that of a stolen credit card number which can be a surmountable problem. If you have a problem with cryptocurrencies, you might seldom find anyone to run to.
Hackers are very attracted to cryptocurrencies because they can be stolen over the internet which means there can be an easy escape as victims are usually in faraway places.
Cryptocurrency comes with security risks that other kinds of investments don’t have, says Don Pezet, co-founder of the online IT training company ITProTV.
“If a hacker steals your funds, they’re just gone,” said Pezet, a longtime IT professional who also serves as chief technology officer of ITProTV’s parent company, ACI Learning.
According to him, the best thing you can do is make sure your cryptocurrency is secured from the get-go, so you don’t run into problems down the road.
Crypto Exchanges With Easy Swap Features Are Constantly Under Threat
Surprisingly true, such crypto exchanges pose a higher threat of losing cryptocurrencies from theft from cybercriminals looking to score big paydays by emptying the vaults.
One of such thefts occurred in August. Cybercriminals took advantage of the vulnerability in Poly Network, a platform that connects different blockchains, the online ledgers that record crypto transactions. The sum of $600 million was stolen from Poly Network although it was later recovered.
Hackers are also looking forward to robbing individual investor wallets so you might be in big trouble if you give up your credentials in a phishing scam or let your devices get infected with malware.
Though people may worry about being targeted by attackers, in reality, they themselves may be the biggest threat to their cryptocurrency’s security, says Andrew Gunn, a senior threat intelligence analyst at ZeroFox.
“We can’t afford to forget about the human element,” says Gunn.
The steps given below are great tips from experts on how to protect your digital assets.
How to Protect your Cryptocurrency
The procedures below will put you through on How to Safeguard Your Cryptocurrency
Use Cold Wallets for the Majority of your Digital Assets and for Long-term Storage
According to Pezet and Gunn, cold wallets are the safest option for storing your cryptocurrency. Cold wallets are wallets that store the data proving the ownership of cryptocurrency offline, making it harder to be stolen by cybercriminals.
You can store the private keys of your cold wallets on a storages device like a USB drive or better still have it printed and file it away. Either way, No cybercriminal can get to your cryptocurrency without them.
This way, the security of your crypto assets falls solely on your hands. If you misplace your USB drive or lose your file, you cannot get your cryptocurrency.
“There is a ridiculous amount of unclaimed crypto out there from these types of situations,” Gunn said, adding that some people have sought password crackers to break into their accounts after they’ve forgotten their credentials.
Since cold wallets are not as convenient as hot wallets which are hosted online, it is advisable to keep some of your funds in your hot wallet if you do day-to-day crypto transactions. Keep as little funds as possible in your hot wallets.
We are advised by Gunn to use multiple colds and hot wallets to have their own unique passwords. That way you won‘t lose all your money if one gets hacked.
Use a very Strong Password and Multi-factor Authentication
It is very mandatory to secure your crypto assets with very strong passwords( 12 random characters) if you want them to be safe.
Using two-factor authentication will involve using another form of identification like a notification pushed on your smartphone or a fingerprint. This action will go a long way in helping you if your password is compromised.
Access your Wallet with Only One Device
Don‘t access your wallet with a public computer such as that of a library or a hotel business center because there’s no way to tell if they are infected with malware.
Similarly, make sure to take care of your devices. Keep your antivirus software and operating systems up to date. Always use a secure internet connection, preferably bolstered by a VPN, Gunn says.
Do your Research on How to Safeguard Your Cryptocurrency
They are so many out there, make sure you are using a very reliable one especially if you are going to use it for a hot wallet.
Be very careful with emails that look like they are coming from a company that looks like they hold your cryptocurrency wallet. It could be a scammer looking to steal your credentials and ultimately, your funds.
If you must know about the establishment, it’s best to skip any hyperlinks and go straight to the company‘s website.
As stated before, it is better to take precautionary measures than recovery measures. Therefore, use these tips (How to Safeguard Your Cryptocurrency) given above to secure your crypto assets as best as you can.