How to protect your cryptocurrency investments
How to protect your cryptocurrency investments
Blockchain is the technology that powers and supports cryptocurrencies. In general, the crypto transaction backend mechanism is complicated and the transactions are time-stamped and recorded in blocks. And because of its complexity, hackers will have a hard time breaking in and keeping the cryptocurrency relatively safe.
However, since certain cryptocurrency companies still do not offer the same level of security as banks, there are several risks and measures to be addressed and implemented when investing in cryptocurrencies.
You will surely benefit from knowing how to keep your cryptocurrency safe and secure. Remember to protect your cryptocurrency investment the same way you protect your other assets. So before making this type of investment, it’s important to make sure you understand how it works.
And by using these six security tips below, you can rest assured that you won’t be taken advantage of. Let’s begin!
6 ways to protect your cryptocurrency investments
If you have cryptocurrency investments, Security should be your number one priority and you should be careful to keep it reasonable. The best way to protect your cryptocurrencies is to protect your cash at home or in the bank. Because if you become a victim of digital theft due to security gaps, your bank cannot help you with this problem.
And to prevent this kind of situation, here are the top six ways you can consider to protect your cryptocurrency investments.
1. Set a strong crypto account password
Setting up strong passwords is recommended regardless of whether you are using a cold wallet or a mobile app for your cryptocurrency investment. Uppercase and lowercase letters, numbers, etc. should be used in a strong password. You are free to combine any characters and letters.
After you create your password, keep it in a safe place. A password that contains different characters, letters and numbers can be difficult to remember. You can keep it in a book or use a password manager.
Also remember that using the same password for all your wallets increases the risk of being hacked by hackers once they have access to just one of them.
2. Do not share your private key
Private keys are one of the pieces of information required to access a bitcoin wallet. When you set up an account, they are created with your wallet address. It’s a long string of numbers, letters and other characters unique to each user.
The secret keys are personal and must not be shared with anyone. Remember that smart and unscrupulous people are everywhere, including on the internet. The last thing you want is for them to gain access to any of your accounts. Therefore, never leave a digital trace of your account credentials.
3. Store your cryptocurrency with trusted wallets
Among all of them crypto wallets available, hardware wallets are considered one of the most secure ways of storing your cryptocurrency investments. And as the name suggests, hardware wallets are like physical wallets. With it, you can rest assured that your account privacy and the security of your crypto assets are in top condition.
The best thing about using hardware wallets is that they cannot be easily hacked as your private keys are stored in a physical wallet and not on the internet. But if your hardware wallet is stolen or lost, don’t worry because you can securely transfer any keys stored in your hardware wallet to another wallet with Wallet Seed.
4. Make sure your devices are backed up
Another useful tip to protect your cryptocurrency investments is to check the security of all the devices you use to open your account and conduct transactions. Devices are known to be easy targets for hackers.
While using your device, you don’t know if hackers have entered your system and all important information including your crypto wallet is already hacked. Because of this, it is best to check the security of your devices and take necessary measures.
To avoid this situation and protect your digital assets from theft and hackers, you should consider installing various anti-malware or virus software. Make sure you run them daily to check if your device is not infected.
5. Apply 2-factor authentication
Aside from strong passwords, you can also consider using 2FA or two-factor authentication to increase the security of your account. And fortunately, most crypto wallets include 2FA to keep users safe while using their apps.
But how does 2FA work? To answer that, 2FA usually comes after entering our password and username. The app will send an OTP or one-time password to your registered phone number or email. After that you now have access to your account. Using this method, hackers have difficulty in entering your account.
Also read: Top 10 cryptocurrencies to invest in 2023
6. Do not use public WiFi
Most people don’t realize that using public Wi-Fi networks while opening certain personal accounts is more vulnerable to your data being leaked and, worse, hacked. And this also applies if you plan to access your crypto wallets or even conduct transactions using public WiFi. Keep in mind that public Wi-Fi is a common method that hackers like to use to access their victims’ personal information.
In addition, as the name suggests, public means that it is open to everyone. You won’t know if someone connected is a cyber thief or hacker because you don’t know who is connected. Also, your IP address can be tracked by others, so any data you share online while connected to public WiFi can be stolen.
But if there are cases when you need to connect, a reliable and trusted VPN connection will do. This way the VPN hides your IP address and all the information you share online is safe.