Table of Contents
- 1 Separate wallets
- 2 Strong passwords
- 3 2FA as an additional line of defense
- 4 Never leave your funds on an online exchange
- 5 Hardware Wallet
- 6 Do not share your crypto wallet’s private keys with anyone
- 7 Back up your wallet
- 8 Multi-signature (or MultiSig)
- 9 Update your crypto wallet’s software.
- 10 Your computer should be secured.
- 11 Consider using coin mixer to secure your online identity
If you are getting into the business of cryptocurrency, say Bitcoin, then your first investment should not be buying bitcoins. What is the first order of the day? Spend time educating yourself.
You should understand how to buy bitcoin, store them, and keep them securely.
At this point, you should already know that buying or investing in Bitcoin is dramatically different. One, it does not exist physically. Therefore, Bitcoin is completely new from what we know and use on a daily basis.
In cryptocurrency, however, if one loses his or her private keys, she or her may lose his or her Bitcoin forever.
If you accidentally lose your passwords for your Bitcoins, no bank or any customer service can help you retrieve the funds you have invested.
While Bitcoin aims to help people have power to control their resources, the responsibility to protect digital assets from possible attacks or human errors rests upon you.
I understand, this can feel like a huge task.
However, you should not worry. Here are some 11 tips that can quickly and easily keep the Bitcoin that you have more secure. Whether you are a new to the whole industry of cryptocurrency or you consider to be an advanced one, here are the reminder you should do (and not do), when it comes to securing whatever crypto investments that you have.
Even if you are just planning to invest in one kind of cryptocurrency, it is strongly recommended that you have various wallets to keep your money.
The market right now offers various wallets that offer various features and benefits. It is quite common among crypto investors to maintain several wallets when keeping their funds.
A mobile wallet, for instance, can be used when you are trading or making small day-to-day transactions. You might want to get a cold wallet if you are keeping a huge amount of cryptocurrency.
Having a few wallets to maintain your crypto funds can substantially reduce the possibility of losing all your money in just one wallet.
However, having more wallets means more responsibility and closer attention on your part.
Having a strong password for your crypto wallet can be a good basic defense position for possible cyber-attacks.
That means you should not also use the same password you use in your other accounts – such as social media sites such as Facebook or Twitter and email – for your crypto wallet. Hackers will not have a hard time hacking your crypto wallet.
Your information, say in your Facebook account, can leak somewhere, giving hackers full access to the wallet you are using and contains your funds.
As much as possible, for the wallets you are using, you have to make strong and unique passwords. To make your crypto wallets more secure, you should set up a two-factor authentication (2FA) process for your exchange accounts.
2FA as an additional line of defense
Think of 2FA as an additional tier of security you can use on your crypto wallet.
To boost your security, 2FA should be activated across all crypto wallets that you maintain.
Once 2FA is enabled, each time you use your online exchange, the process requires you to enter the password of your wallet password. Then it will ask you for a one-time passcode (OTP). Think of OTP as another means of confirmation, a type of verification for your wallet’s security.
Having this setup in makes it harder for hackers or online thefts to get your funds.
Never leave your funds on an online exchange
Do not leave your cryptocurrencies on an online exchange – or at least any longer than you need to.
Allocate enough money that you actually need to trade then move the money off the online exchanges as soon as your transaction is finished.
If you are using free crypto wallets on cryptocurrency exchanges to store your money, then you are putting the ownership of your funds at huge risk. You are practically giving third-party permission to access your funds, especially those whose accounts are susceptible to hack attacks.
In addition, better to avoid using those web wallets when you can.
Actually, it is just fine to maintain small amounts of cryptocurrencies on your mobile phone if you are planning to do some small purchases or while you are trading transactions on an exchange.
However, if you plan to store huge amounts of cryptocurrencies on a long-term basis, you should consider using a hardware wallet.
By far, a hardware wallet is the safest and most secure method of keeping your funds. Up until now, there have been no incidents of cryptocurrencies being stolen or hacked from a hardware wallet.
If you still do not have a hardware wallet, get a reliable one. Always buy a brand new one you can get directly from an official store.
Do not get a hardware wallet from a third party, no matter how cheaper it is compared with the one in the store. If the hardware wallet is tempered, there is a very high chance you would lose all your cryptocurrencies.
Regardless of the wallet or wallets you are using, the most crucial part is your private key. What is a private key? It is basically a secret code that enables you to sign transactions, manage funds, move your coins in real-time.
Your cryptocurrencies are only safe if you alone have 100-percent control over the private key you are using.
Thus, it cannot be stressed enough that your hardware wallet should have the capacity to generate private keys and securely store them. Any person that knows your private keys can unlock your wallet and steal your money.
Your top priority is to have your private keys safe, offline, and hidden from anyone’s view.
Back up your wallet
If your device gets lost or damaged – or stolen in some cases – then your backup would allow you to retrieve your keys and restore your access to your cryptocurrencies.
This process is simple and straightforward. You just need a recovery phrase (also known as recovery seed) that asks for a unique series of words. As long as you have this, you can restore your cryptocurrency investment even if you are going to use a new wallet.
Multi-signature (or MultiSig)
A MultSig, aside from 2FA, can be an additional security step to stop anyone from stealing your assets.
With multi-signature, a few people have to sign in order for you to complete a transaction. Standard transactions need just one single person to make a transaction. That can be very risky.
By getting the permission from a few users before any person can have access to a crypto wallet can substantially improve security, particularly when a certain crypto wallet gets compromised.
Update your crypto wallet’s software.
Make sure you have the latest security patches, features, and bug fixes. That way, you can be sure your crypto wallet’s security features are updated and give you the best safety.
Your computer should be secured.
Providing a safe environment for your crypto wallet also means getting the latest software version on the computer or mobile phone you are using.
You should also practice safe computing and Internet use measures. These include avoiding malicious or randoms websites or downloading suspicious programs or files. The antivirus software you are using must be up to date.
If you are using web-based wallets, you should always check their URLs. When visiting a certain website, check out first whether it is secure. The browser’s top address bar should start with https://.
Lastly, do not use your crypto wallet using a public computer or accessing it from a public WiFi network.
Consider using coin mixer to secure your online identity
All your cryptocurrency transactions will be permanently recorded online and available for anyone to view.
If you are moving huge amounts of cryptocurrencies and want to hide your identity, you should consider getting a coin mixer. A coin mixer can break the connection between sending and receiving addresses, making transactions more anonymous.
Here are 11 easy tips to keep your cryptocurrencies safe from theft, hacking, and other forms of risks.
While getting a crypto wallet entails more responsibilities for you and requires you to be more conscientious of your internet and online practices, these 11 best practices would help you maintain and manage your funds more securely.
Spend time to educate about the practices yourself, begin practicing the methods in order to maximize your security and privacy.