How To Safeguard Your Cryptocurrency

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As crypto trading becomes increasingly more mainstream, cyber criminals are become more persistent in attempting to steal personal and business information, using increasingly more creative ideas and disguises to be successful in their attempts. The good news is that, when it comes to protecting your cryptocurrency, there are some steps you can take to improving your cyber security. Not only can this protect your funds, but these handy tips and tricks can be applied to the rest of your digital life, too. 

Although cryptocurrency is a relatively new concept, only forming shape within the last 10 years, a large amount of cryptocurrency goes missing through scams and hacks, with it seemingly disappearing into the internet void. It makes sense to take steps in order to protect your cryptocurrency, so with that in mind, let’s take a look at the ways in which you can safeguard your cryptocurrency. 

Use A Secure Wallet

Many crypto trading investors buy popular cryptocurrency, such a Ethereum and Bitcoin, as part of an exchange or as a way to keep the currency on that platform. Digital wallets exchanges tend to use their own safety precautions, but that doesn’t make them immune to hacks and scams. One of the best ways to protect your cryptocurrency is to use a secure wallet. There are two primary forms of crypto wallets, but the best option is perhaps a hardware device. 

These physical (also known as cold) wallets look just like a USB stick and act as a physical store for which to store your coins. Each hardware walley is linked with its own private key – a password-like snippet of code that allows you to decrypt the wallet when needed and access the coins which are stored on it. Although these hardware wallets are effective against digital thieves, there is a risk involved with losing your password. If you lose this, then you’ll never recover the contents. 

Use 2-Factor Authentication

As well as ensuring that you use a secure wallet, you can also use 2FA (2 factor authentication) where possible. This is just another way of protecting your accounts and ensuring that your digital information is kept safe, including anything cryptocurrency related. You should always look to use the strongest types of 2FA that is available on each platform, ideally using Yubikey or similar security. 

If a platform doesn’t allow the use of your chosen authentication app, then use something like Google Authentication. If SMS 2FA is the only thing available, then this is better than nothing and you can at least request a one-time code to be sent to your phone each time you login. 

Stay Vigilant

It’s not only important to do as much as you can to secure your accounts, but staying vigilant is vital, too. Avoid making yourself a target by not talking about your cryptocurrency holdings online and ensuring any information you do disclose is to trusted people. Crypto hackers often pose as friendly traders willing to make investments on your behalf, or as crypto tech support, so if anyone ever approaches you saying that they are one of these people, be especially careful. They may pressure you for account credentials, so avoid anyone asking for passwords, codes or remote access to your computer.

You should also be wary of anyone asking you to make transactions to their crypto wallet if you’re not sure who they are, of if you’re sending large amounts of money. There are services you can use to carry out checks on online crypto wallets to ensure you are sending funds to the right person.