Since cryptocurrencies appeared on the market, they have disrupted many industries.
However, the more considerable interest in Bitcoin, Ethereum, and the other popular coins eventually led to an interest in crypto theft.
Cryptocurrencies are a great financial asset for many traders and investors. But despite the fact that they’re so useful, they aren’t without risks – the loss of your private keys, computer failure, and theft can permanently banish your coins to the void.
Your private keys are an important piece of information that gives you access to your cryptocurrency wallet. In order to protect them from being lost or stolen, it’s vital that you keep them in a secure location.
How to protect your cryptocurrency
Cryptocurrencies are gaining momentum, but they come with risks. The value of Bitcoin, Etherium, Litecoin, etc. fluctuates constantly. There are many ways in which you can protect your online wallets when trading cryptocurrency. Here are some tips to help safeguard your wallet.
- Protect your cryptocurrency wallet with a strong password: Don’t use the same password across multiple services, especially cryptocurrency services. It’s crucial to take security seriously. Make sure you implement two-factor authentication and regularly change your passwords in case a service is breached. Using a password manager can help to automate this process and save you a lot of time.
- Do not put much crypto in online wallets: Keeping cryptocurrency offline is the best way to store it. Hackers have been targeting online wallets lately, so consumers will have to be careful about which ones they choose to use. Offline storage is the best option, and a hardware wallet is a great tool for doing just that. A physical wallet can fit in a safe or safety deposit box, and it’s easy to use – just plug it into a computer or phone via USB and transfer your currency.
- Avoid trusting any unreliable cryptocurrency exchange: If you invest in cryptocurrency on the cryptocurrency market, you should know who to trust. And who to run away from. A good starting base is to check reviews on Trustpilot before you buy Ethereum or any other crypto coin.
- Be extremely cautious with your mobile traffic: Phishing campaigns are only going to get worse as cryptocurrency prices continue to soar. Aside from phishing, malicious apps can also gain access to your mobile device and steal your login credentials. It may be a little hard to believe, but these malicious mobile apps have a way of watching what you type or even taking pictures of your screen. It will be best to consider purchasing antivirus software on your mobile device, too.
- Avoid sharing your private key: The private key is a user’s access code to their digital currency. Think of your private key as your user name and your public address as your email address. If someone else has access to your private key, they can steal all of your cryptocurrencies. This is why it is important to keep this information secure and never share it with anyone else. The best thing to do is print out the key on a piece of paper to avoid any information leak or hack attacks.
- Run away from wallets hosted by providers: The method of storing private keys (the “wallet”) on servers controlled by third-parties is a major security risk. It means the fate of your coins is in the hands of somebody else. If somebody gets access to one of their servers, they can empty them remotely. If somebody breaks in, they can steal everything. And there’s no way to get it back.
When to use hot wallets and when to resort to cold wallets
A cold wallet is like a regular savings account because once the coins are stored inside, they’re relatively secure. However, coins can’t be moved as quickly as those stored in a hot wallet – which might be fine for those who aren’t active traders or don’t deal with crypto transactions very often. Hot wallets make it easy to send and receive crypto but carry more risk than cold wallets – and therefore represent a double-edged sword for crypto users.
Be safe from potential losses
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’ll be able to secure your cryptocurrency assets, protect them from fraudsters, and be safe from any potential losses.