Cryptocurrency is a digital currency that is exchanged and recorded on blockchains. It does not require central intermediaries (i.e. banks) for transactions.
Blockchain is a decentralized technology spread across many computers that record transactions. One of the reasons a lot of people have been hesitant to invest in cryptocurrency is because of security risks. Cryptocurrency has become more popular and leaves us with an increasing number of people with bad intentions trying to take advantage of new technologies. By following a strict security protocol, you will be able to secure your cryptocurrency assets.
- Use different wallets for different purposes
You should use different wallets wallets for different purposes. For example, you may store some crypto on a centralized exchange,but that should not usually the crypto you intend to hold on to for a long time.
The rule of thumb should be:
- Use a hardware wallet for long-term investments.
- Use a software wallet for smaller investments.
- Use a centralized exchange if you trade, swap or buy crypto.
- Protect your cryptocurrency wallet with a strong password
Most people use passwords that can easily be guessed, such as their date of birth. Don’t do this instead create a strong password that no one can easily identify or track. Ensure the passwords are long strings and combinations of numbers, symbols, uppercase and lowercase letters. Change the passwords from time to time, never use a particular password for too long.
- Do not put much crypto in online wallets
Keeping cryptocurrency offline is the best way to store it. Offline storage is the best option and a hardware wallet is a great tool for that. The most secure wallet is a hardware wallet which is a dedicated cryptography device to generate and store secret keys and sign transactions. This type of wallet usually is a USB stick, Bluetooth device or smart card with special embedded software to do cryptography functions. It is not general-purpose computer so hackers cannot install a malware program easily.
- Avoid trusting any unreliable cryptocurrency exchange
Scams come in various forms, but the most obvious way hackers steal crypto is when unsuspecting individuals attempt to buy digital currency on fake crypto websites. Always double-check any crypto exchange website to ensure you are on the right site. Check the spelling of URL, including KYC, certificates, linked social media platforms and reviews from past users.
- Be cautious with your mobile traffic
Malicious apps can gain access to your mobile device and steal your login credentials, so be cautious with your mobile traffic and purchase antivirus software on your mobile device.
- Avoid sharing private keys
The private key is the users’ access code to their
cryptocurrencies. If someone else has access to your private key, they can steal all of your cryptocurrencies, so avoid sharing your private keys.
- Never use public Wi-Fi for transactions
Never use a public Wi-Fi connection for any transaction. Hackers can easily track transactions conducted over public Wi-Fi networks. Therefore always use a private network.
- Enable two-factor Authentication
Passwords can be compromised. However, as a second layer of security ensure you enable two-factor authentication. You can also use multiple passwords using two-factor authentication, this increases the security level of your cryptocurrency account.
- Use Cold Wallets
Cold wallets are also called offline wallets that are installed on an offline air-gaped device to avoid any online hack and virus. The device has no internet connection and transfers keys and transactions with USB stick.
10. Keep your Software updated
Whatever device you are using keep it up to date with the latest software. Make sure that your device including the applications is up to date.
You may feel like a lot to do to keep your cryptocurrency secure, but it is worth protecting your investment from hackers. The easier it is for you to log in and access your crypto wallet, the easier it is for an attacker as well. So applying these practices will not only help you to protect your crypto wallet but also your everyday online transactions.
Frequently Asked Questions (FAQs)
What does a crypto wallet hold?
Cryptocurrency wallet holds public and private keys that allow users to exchange currencies and keep track of the balance of their currency.
Which key is used to store crypto?
Private keys are used to store crypto.
How to store crypto securely?
You can store your crypto in a cold wallet.Cold wallets are also called offline wallets that are installed on an offline air-gaped device to avoid any online hack and virus.