There has been a lot of activity in the crypto market this year. Over time, more people have come to know that cryptocurrencies are the future of finance, and they have no choice but to embrace them.
However, crypto is a two-faced coin. The good times can be good, but the bad times can also be overwhelming. For all the benefits that they provide, cryptocurrencies remain very risky - and not even from the price perspective. Hacks and thefts have seemingly reduced in 2021, but there is always the threat of a security failure.
Those who are new to crypto will need to be careful as they handle their assets. If you’re such a person, you need to understand some fundamental security tips. We’ll go through a few of them below and see how they can help you:
Be Versatile in Your Approach to Coin Storage
Today, there is an explosion of popularity for online wallets. Exchanges and more use online wallets, and while they make transactions easier, they are more susceptible to hacks. Since they’re online, they can be hacked.
This is why you should also consider the use of offline wallets. In fact, the top recommendation will be to store most of your money offline while the rest is kps online - probably for quick transactions or investments. If you’re the type of person to hold on to cryptocurrencies for long, offline wallets are definitely a great option for you.
You should also take care to store your physical wallets in a secure place - perhaps a safety deposit box or a safe. This way, they can’t be tampered with.
Whatever wallet you use, make sure to secure it with a strong password and, if possible, multi-factor authentication.
Use a backup for your crypto wallet
Once you select a wallet to send and receive cryptocurrencies, you need to make sure to back it up. This is one of the most important steps you can take to protect your money. A backup ensures that you can recover your funds and important keys if your device gets lost or stolen. This way, retrieving your coins will be easy as a snap.
For most wallets, backing up is pretty easy. You simply need to write down a series of words - known as a recovery phrase. For instance, Ledger’s Nano wallet* uses a 24-word security phrase. Once you have this phrase, you will be able to retrieve your coins in a new wallet.
Note that you need to be careful with how you store your recovery phrase. Don’t take a picture of it, and don’t store it on your computer. The latter is much worse - if the computer gets infected, a hacker could get the recovery phrase and steal your money.
The best way to keep your recovery phrase is to keep it off-site. You can write it down on a piece of paper and keep it.
Only Work With Reputable Services
This point is also quite important. You want to protect your wealth as much as possible, and the services you use will have a huge part to play in that. There are several exchanges, trading platforms, wallet services, and more today. Make sure to only work with reputable ones.
When selecting the service to work with, be sure to look into their security infrastructure and what they offer. In your best interest, read reviews about these services before you select them - especially reviews that focus on their security infrastructure. Names like Coinbase, Binance, and Kraken are reputable services that have built a reputation for safety in the crypto space.
Check Your Official Communications
Another famous way that hackers try to get through your security infrastructure is through phishing. Essentially, they send emails pretending to be people they’re not. These emails ask for your sensitive information, and the hackers immediately use this information to steal your funds.
Some emails also ask that you click on certain links, after which ransomware is installed on your computer to steal your information. So, be sure to check for emails and other communication materials that you get. If a message is from an untrusted source, don’t engage it.
Protect Your Identity Too
Another interesting point is that attacks on cryptocurrency investors themselves are increasing. Back in 2019, the crypto community was put on notice after a Dutch citizen was kidnapped and tortured at gunpoint. The attackers used drills and other weapons to threaten him after they found out that he had cryptocurrencies.
So, it’s important that you practice privacy and security for yourself as well - not just the coins you hold.
Remember not to share any personal details that can be used to access your information. These include phone numbers, PINs, email addresses, and more. Even things like your pet’s name or your mother’s maiden name can be used to track you. So, be careful while using them. You also need to avoid suspicious transactions that will involve exchanging your personal details.
You are responsible for the safety of your funds, and you should pull off all the stops to ensure that things work.
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