Ideally, cryptocurrencies are based on cryptography, and this element makes them inherently safe. It is very hard to hack a private key or “the blockchain” because an attempt to get past the blockchain algorithm that is encrypted will require one to have enormous amounts of computational power.
The only logical way to steal a wallet is to take advantage of the carelessness of the owner, especially the newbies who are starting out in crypto investments. To help you securely safeguard your cryptos, we are going to look at 10 crypto security tips you need to adhere to safely keep your digital assets from the hands of hackers.
Store your device safely
Always ensure that you have your firewall and antivirus system enabled. Avoid any software installation that you are not sure about. In case you want to make software installation, remember to research about it first. Additionally, do not download random attachments that you come across in your email.
Beware of phishing scams
Hackers are known to create a fake web wallet or an exchange that they use to target unsuspecting victims. These sites tend to have very compelling messages where users are trapped to fill in their login details.
Once the details are submitted, hackers then use the data to access your real accounts. To avoid this trap, always check the link you are using on the browser against the one you use on your web wallet or your exchange and confirm if they match.
Use a VPN service
You can be directed to any browsing page by Wi-Fi hosts which in some instances can be fake wallets or exchange sites. Hackers can also collect sensitive details like your password through the network. If you want to use your wallet through a safe channel, always use a secure VPN service.
Avoid storing cryptocurrencies on exchanges
You might be confident enough about your efforts of securing your cryptos, but you should not be too reliant on storing your coins on cryptocurrency exchanges. Cases have been reported where large exchanges have lost cryptos for several individuals because of hacks and technical errors. When you are not trading, always withdraw your funds and store them in your wallet.
In case you still insist on storing them on an exchange, choose the best crypto exchanges that you can find. The topmost exchanges will most likely be trustworthy when it comes to safeguarding your coins.
Use a two-factor authentication procedure
An additional layer of security when you buy BTC is added in a 2-factor authentication system for the purpose of validating the access to your wallet. This makes it hard for hackers to get to your wallet or exchange account because the password is not sufficient enough to gain access to the account. Most exchanges and wallets provide the use of 2-factor authentication option which can include the use of a random PIN that is either sent to you as an email or SMS.
Use complex passwords
When setting up a crypto exchange or wallet account, always use complex passwords. You have to combine numbers, lower and uppercase letters, and even symbols. In other cases, you can also use an online password generator to create a more complex password.
Once you have the password generated, to store it in a safe place. The safest way to store your password is to write it down in a book or a file. Always ensure that you store it offline so that no one can have access to it.
Purchase a cryptocurrency wallet
The safest way you can store your digital assets is to use crypto hardware wallets. This is a device that is engineered specifically to store a user’s private keys inside a circuit that is impenetrable, and at the same time, it allows users to authorize transactions easily. Some hardware wallets also have a “seed,” which is a physical paper that allows the transfer of keys to a different wallet when the device gets stolen or lost.
Avoid crypto gambling sites
Bitcoin gambling is a sensation to many people because of its anonymity. However, this can also be a disadvantage. Most Bitcoin gambling sites exist without the explicit disclosure of the individuals running the sites, and this makes it hard to check if the site has the necessary licenses to operate. For you to safely keep your cryptos, avoid using gambling sites, especially those that have been in operation for less than 1 year.
Ensure that you store your holdings privately
There are several cases where people have been murdered and assaulted because of their cryptos. For instance, there is a Norwegian male who ended up being murdered after completing a huge bitcoin transaction.
Criminals are attracted to stealing cryptos because they are hard to trace. It is hard to steal from a bank account because trails can be sourced, but when it comes to cryptos, the opposite is true.
Encrypt your data
You can download a .dat backup file in your software wallet that contains your keys. Using a VeraCrypt software, you can encrypt the .dat file and store it in your USB device. If a hacker manages to steal the stick, it is hard for them to access your wallet.
Crypto theft has become a popular venture in cyberspace over the last decade. Hackers are becoming more interested in this line of business because it is highly profitable compared to attacking banks. To safely store your coins, follow the guidelines we have listed above.
It is sad but true that we need to make a dedicated effort today to protect what is rightfully ours. It may seem like an added hassle and expense to follow the tips and advice that has bee provided but you definitely will not regret it in the end when your investment is protected.