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How to Keep Crypto Assets Safe

16 May 2024 11:56, UTC

Photo by Art Rachen on Unsplash

Cryptocurrencies have entirely revolutionized the financial world with a decentralized form of currency. This revolutionary innovation in the world of blockchain brings with it a good number of challenges, especially the security of digital assets.

Using a Virtual Private Network like Nevada VPN can add more security to your online activities. Nevada VPN encrypts your internet connection, making it much harder for hackers to intercept your data, especially when using public Wi-Fi.

Below are some practical ways in which you can keep your crypto assets safe.

Choose a Secure Wallet

The first step in securing your cryptocurrency is choosing the right wallet. Several types of wallets are available, each with its security features. Hardware wallets, such as those from Trezor and Ledger, are highly recommended because they store your private keys offline, making them less vulnerable to hacking. Software wallets are good for day-to-day transactions, though they should be chosen with caution. Ensure that software wallets possess very strong safety features, including encryption and two-factor authentication.

Keep Your Software Up-to-Date

Make sure you update your wallet and other devices you use to manage your cryptocurrency. There are common updates for patches of security vulnerabilities that hackers can exploit. Always make sure to be vigilant with updates and to install the very moment they come out. You do need to be wary of automatic updates for crypto applications because they might have some bugs; in any case, it is better to wait a couple of days to ensure the new version runs smoothly.

Use Strong, Unique Passwords

For your accounts, you need a strong and unique password. Do not have one single password for two different accounts. Password-managing applications, like LastPass and Dashlane, can make and securely store complex passwords for you. Most importantly, ensure that you set up a two-step verification on your password manager with a strong password.

Enable Two-Factor Authentication (2FA)

Enable two-factor authentication that involves a second level of verification apart from the password you have entered. This means something like a code sent to your phone or generated in an authenticator app, like Google Authenticator. Turn on 2FA for all your accounts, including email and crypto exchange accounts. This makes it much more difficult for hackers to access your accounts, even if they manage to steal your password.

Avoid Public Wi-Fi

Public Wi-Fi networks can be a hotbed for hackers looking to intercept data. Avoid accessing your crypto accounts or conducting transactions over public Wi-Fi. If you must use public Wi-Fi, ensure a reliable Virtual Private Network encrypts your internet connection and protects your data from prying eyes.

Keep Your Private Keys Secure

Your private keys are the most crucial element of your crypto security. Never share your private keys with anyone, and avoid storing them digitally in a way that hackers could easily access. Write down your private keys on paper or use a metal plate product designed for recording crypto keys. Store these in a safe, secure location, such as a fireproof or waterproof safe.

Be Wary of Phishing Scams

Phishing scams are a common method hackers and scammers use to steal personal information. These scams often appear in emails or messages that appear to be from legitimate sources, asking you to provide sensitive information or click on a malicious link. Always double-check the sender’s email address, and never click on links or provide information unless you are sure the request is legitimate. When in doubt, contact the company directly through its official website.

Minimize Crypto Held on Exchanges

While it might be convenient to keep your crypto assets on exchanges for trading purposes, storing most of your holdings in a secure wallet is safer. Exchanges can be vulnerable to hacking, and you could lose your assets if an exchange is compromised. Keep the amount you need for trading on the exchange, and regularly transfer the rest to your secure wallet.

Use Reputable Exchanges

When choosing an exchange to buy or sell cryptocurrency, opt for reputable platforms with a track record of security. Exchanges like Coinbase, Binance, and Kraken are well-known for their robust security measures. Additionally, these platforms offer features like 2FA and insurance against certain types of losses. Always do your research before committing to an exchange.

Educate Yourself About Common Scams

Staying informed about common scams in cryptocurrency is one of the best ways to protect yourself. Scams can take many forms, including fake giveaways, phishing emails, and Ponzi schemes. Familiarize yourself with these tactics and remain skeptical of offers that seem too good to be true. Educate yourself through reliable sources and communities, and never invest in something you do not fully understand.

Backup Your Wallet

Regularly back up your wallet and ensure multiple copies are stored securely. This will protect you if your primary device is lost, stolen, or damaged. Use digital and physical backups and ensure that all backups are encrypted and stored securely.

In summary, while the decentralized nature of cryptocurrency opens many avenues for advantages, it also places a large share of the security burden on the individual. Following these steps will help drastically to minimize any potential loss of your crypto assets and secure your investments much more. Keep your eyes open and your security practices current, as the landscape of cryptocurrencies grows and changes.