Five Ways to Secure Your Crypto Assets Safely
Security is one of the most important features of blockchain-based technology and cryptocurrency.
Over the years, however, hundreds of traders and investors have lost their crypto savings. The reasons are varied. There are many ways that scammers could attempt to steal your savings, including improper key management, hacking exchanges and phishing scams.
We’ve curated five ways you can secure your crypto assets:
1. Make Sure You Have a Secure Wallet
Users must understand that cryptocurrency threats are not connected to the blockchain but through their wallets or exchanges. Your private key can also be stored and tracked at the provider level. Hackers can access this information to steal your savings.
As more people use cryptocurrencies, the competition between digital wallets is increasing.
It is becoming increasingly important for users to choose carefully which wallet they use. You should only use wallets made by trusted companies like Coinbase, Gemini or The Bitindex AI that have a track record. You can find out more about our trusted crypto wallets guide and the top seven non-custodial cryptocurrency wallets. There are many things that you can do after you have done this to ensure the safety of your Bitcoin or other cryptocurrencies.
2. Back Up Your Wallets
You should keep your private keys for your wallet offline as a rule. Hackers can’t access them this way. These private keys should be protected offline as well as being backed up.
You should also keep a backup copy of your keys out of your home. This will ensure that you have them available in the event of an emergency such as a fire or earthquake.
It may sound strange, but a safe in your bank is a good place to keep your private keys. This should be used as a backup, and you should have full access to your private keys at all times.
3. Make Use of Cold Storage
Using cold storage is a good practice for investing and security. Even if you have cold or hot storage, it is a bad idea to keep your entire cryptocurrency portfolio in one wallet. It is best to use multiple cryptocurrency wallets to spread your savings so that you won’t be affected if any one is compromised.
It is highly recommended to use cold storage devices. These wallets cannot be connected to the internet, and are therefore almost impossible to hack, unless you fall for a phishing scheme, which is also discussed below. Trezor is the most well-known brand, followed by Ledger.
4. Protect Yourself From Phishing Scams
As more people become involved in cryptocurrency, phishing scams have been growing in popularity in recent years.
There are many ways that someone could compromise your security, including fake Google, Facebook and YouTube ads, false applications incorrectly uploaded to Google Play Store and App Store, phishing domains, which mimic popular websites, among others
Your cryptocurrency assets will disappear as soon as you send your private keys to a phishing website. These scams are often very complex and anyone with some experience may fall for them. They often look identical to the original. It is important to avoid visiting websites that you do not trust. You should double- and triple-check any applications you download to make sure they are legitimate.
5. Do Not Store All of Your Crypto on an Exchange
Although many of the leading exchanges are safe and have insurance, it is not a good idea to keep the majority of your crypto on exchanges. Keep only what you use to trade on exchanges. If it is hacked, your money will be gone. There have been many hacks on big-name exchanges like KuCoin. Your crypto could be at risk.
When dealing with cryptocurrency, there is no centralized security system. In essence, you are your own bank and keeping your investment safe is your responsibility. The main problem with crypto and bitcoin is that unlike traditional banking, there is no way to get your digital currency back. There is no insurance. Therefore it is of critical importance that you keep your crypto assets safe.