For many traders and investors, cryptocurrencies are a fantastic financial asset. The loss of your private keys, a computer malfunction, or theft can all result in the irreversible loss of your coins, irrespective how beneficial they are.
An essential piece of information that enables you to access your bitcoin wallet is your private keys. You must keep them in a secure location to guard against being misplaced or stolen.
One of the first things beginners should learn is how to keep their cryptocurrency wallet secure. It’s equally crucial for seasoned cryptocurrency users to stay up to date with new best practises and standards. The two main causes of security problems are external threats and human error.
How to Safeguard Your Cryptocurrency
Although they are gaining popularity, cryptocurrencies are not without risk. Cryptocurrencies like Bitcoin, Ether, Litecoin, and others continuously change in value. While trading cryptocurrencies, there are several strategies to keep your online wallets secure.
1. Invest in a trusted wallet service
Be sure the wallet provider has a solid reputation in the market before you import your keys or move crypto to a new wallet. Read evaluations from many unbiased publications. In addition to reading good evaluations, look into usage data to get a feel of how well-liked the wallet is across the board in the crypto world.
2. Utilise two-factor authentication (2FA)
You might be able to use 2FA device-based security depending on your wallet provider. By forcing you to input a code generated by your authenticator app in order to sign in, BitPay leverages 2FA to increase wallet security (if using a BitPay ID account)
3. Lock your wallet using biometric/facial recognition technology or an entering passcode
It is inevitable under normal conditions for someone else to handle your phone. Use any additional security your wallet offers. For added privacy and security, the BitPay Wallet features optional fingerprint, facial recognition, and PIN screen locks to secure your valuables against unauthorised access.
4. Back up your wallet
When you make a new wallet or key, be sure to write down your recovery phrase as quickly as possible. Self-custody wallet services like BitPay do not save or maintain seed phrases in order to provide you total control over your money. Your money is probably gone if you misplace your wallet before recording your seed word.
5. Secure your devices
Users are advised to safeguard their personal devices as best security practise. This procedure entails a number of stages, such as applying system updates and setting up reliable firewall and anti-virus defences. These precautions constitute a crucial layer of safety for digital investors, even though they are insufficient on their own.
6. Frequently change your passwords
While this could at first seem useful, it quickly turns out to be unhelpful when a threat actor manages to hack a user’s password and compromise their data. It is vital to establish secure, complicated passwords that are different for each account. Managing dozens to hundreds of login credentials can be a pain, so it’s helpful to use password managers or single sign-on (SSO).
7.Keep your private key to yourself
The private key is the password for a user’s digital currency. Consider your public address as your email address and your private key as your user’s name. Your entire collection of cryptocurrencies is vulnerable to theft if someone else obtains your private key. This is why it’s crucial to keep this information private and to never divulge it to third parties. To prevent data leaks or hacker attacks, it is best to print out the key on some paper.
8. Avoid Fake Software
For instance, several con artists sell imitations of MetaMask, a well-known Ethereum wallet. They even promote these fake wallets on Google or Facebook.
By avoiding click-through adverts on search engines or social media platforms, the easiest method to avoid this kind of scam is to only download wallets from the developer’s official website.
9. Register for a VPN service
Choose a secure private internet connection while managing crypto investments rather than a public Wi-Fi network. By encrypting a user’s online traffic, a virtual private network (VPN) can change their IP address and location. VPNs are a simple way to protect users’ online data and browsing activity from outsiders, like hackers.
10. Don’t store a lot of cryptocurrencies in online wallets
Customers will need to be cautious about which online wallets they choose to use as hackers have recently been targeting them. A physical wallet is small enough to fit in a safe or safety deposit box and is simple to use all you have to do is connect it to a computer or phone through USB to transfer money.
How Hackers Steal Crypto
Hackers mostly utilise one of two techniques to steal cryptocurrency: either they steal it outright or they deceive victims into handing it to them. When people or companies wish to invest in cryptocurrencies, they frequently use a blockchain exchange. This procedure entails opening an account and funding it with money that has been converted into the chosen digital currency.
The exchange is the sole party with access to the private keys that are used to control and store the cryptocurrency in a custodial wallet, where it is typically kept.
Hot wallets are made to hold bitcoin online, but cold wallets store the private keys needed to access it offline. Due to the nature of blockchain networks, it is nearly impossible to identify the hacker or hackers who stole the money.
Tips for Secure your crypto
- Support your seed words with actual written documentation.
- Store the backup in a secure location where it won’t burn or flood.
- Save no screenshots or unencrypted copies of your seed words on your computer.
- Keep your physical backup’s location a secret.
- Use your seed words to restore your accounts if your device crashes.
Final Thoughts
As more people download wallets and sign up for networks for the first time, the cryptocurrency market keeps reaching new highs, but this surge in activity also attracts more crooks who want to take advantage of the new users.
Increasingly more people are trying to take advantage of new technologies as a result of the popularity of cryptocurrencies. You may secure your cryptocurrency holdings, safeguard them from scammers, and avoid any potential losses by adhering to a stringent security procedure.
