If you are keen on trading cryptos or enjoying the many benefits it brings to the financial world, you should learn to secure your assets. Here are 5 simple but effective ways to secure your cryptocurrency.
While blockchain is often touted as the model of internet security, it doesn’t mean that all its systems are secure for the users. For instance, there are a few security risks associated with digital wallets, which many cryptocurrency investors don’t know. Security threats to digital wallets don’t occur through the blockchain but via wallets or exchange providers.
For instance, your information such as your private key can be traced at the exchange provider level and used by hackers to access your wallet without permission. To be safe, here are 5 simple but effective ways to secure your cryptocurrency.
Add An Extra Layer Of Security With Two-Factor-Authentication
Two-factor-authentication (2FA) passwords change every 30 seconds, giving potential hackers little to no chance of breaking into your crypto account. However, 2FA may not fully guarantee your crypto assets’ security because there are workarounds they can still use. So, besides your crypto exchange, enable 2FA on all other online accounts associated with your crypto assets, including your mailbox, social media, and file storage platforms.
Disable Auto-Updates For Your Crypto Wallets
Most crypto wallets are periodically updated to secure them against potential security threats. And failing to update your wallet exposes your funds to cyber threats. So, it is recommended to always monitor your wallets for new update releases. However, never rush to download new updates as soon as they are available because new versions may be released with bugs that can compromise your security. Wait for a few days until other users have updated their wallets or until things are quiet. And always disable auto-updates.
Leverage Cold Storage
Have two or more wallets. You could use one for transactional purposes and the other for storing your crypto savings. The latter wallet should be a cold storage wallet. If possible, store a backup of your private keys offline. It’s even better to separate the private key into multiple parts and store them differently.
Create Your Own Cryptocurrency Wallet
The best way to secure your cryptocurrency is creating your own wallet to access and store those currencies. There are different types of cryptocurrency wallets and the process of creating each is different owing to varying security levels. Mobile wallets are preferred by many cryptocurrency investors because they allow quick and easy access to crypto assets.
However, they are more vulnerable to cyber attacks, especially when compared to paper and hardware wallets. When you decide to create online wallets, therefore, it is advisable to fortify its security. Secure online wallet provides a lot of benefits, including quick access to your assets, easy management of a wide range of assets in a single space, and authenticated transaction among many other benefits. You may also search for cryptocurrency exchange development company that will assist you in developing an online wallet.
Have A Backup Of Your Digital Wallet
With a backup, you will still access your digital wallet if you lose your device or if it fails. Choose a safer or different location for your backup. In case your device fails or gets stolen, you can restore your access to your digital wallet via the backup file.
If you are keen on trading cryptos or enjoying the many benefits it brings to the financial world, you should learn to secure your assets. Although the above-highlighted precautions may seem to be a bit complex if you are just starting, you will soon find that they are not hard if you turn them into your daily habits.
Bill Adams has been into currency trading for over 5 years. After taking a short course about Forex and Cryptocurrency, he decided to put his knowledge to good use as a writer and trader at TenkoFX. His educational background in Business Administration and Economics has given him a broad base from which to approach Forex and Cryptocurrency topics.