Anything that you consider of value, should be kept safe and secure. Your cryptocurrency is certainly no exception. A gold coin is likely best stored in a vault bolted into the wall, or possibly a safety deposit box. The most appropriate solution for your cryptocurrency is often unknown.
Modern life inundates us with passwords. Those which we regularly use are simple and much easier to recall than the 16-word seed phrase that gives us access to the $10,000 in Bitcoin we bought last year and haven’t had reason to retrieve since. Memory aside, what are the repercussions for your crypto investment, if your computer crashes or gets hacked? In the aftermath of several initial public offerings going bust, and the related take-up by millions of people the world over, there are of course useful steps in place to safeguard your coins, that won’t take up much of your time and don’t require technical expertise.
Exchanging your cryptocurrency via a digital wallet or exchange provider is an area of potential vulnerability where safety is concerned. While this wallet doesn’t hold your coins, the password now called a private key, which is your digital ID enables you to trade online. Cyber criminals seek out these private keys and with access, can defraud investors. We’ll look at a few ways to ensure your comfort levels into the future.
- Change your password regularly
The account information which a hacker gets to give up is usually a password. Its significance should therefore never be underestimated. Regularly changing your password will support efforts to mitigate the risks according to The Money Mongers, a site that explains everything there is to know about cryptocurrency. Set a regular reminder to ensure consistency. The strength of a password has been elaborated on ad nauseum and yet, individuals continue to be utterly predictable in their selection. This fact and the ease of access for ill-intentioned people have intensified guidance on what constitutes a strong password. Please do yourself the large favor of getting to grips with this. The additional security layer of two-factor authentication is also a must when making withdrawals and deposits. This necessitates your inputting a security code, sent to the device of your pre-selected choice. Username insertion usually precedes a password. The former also deserves your attention in ensuring a different one per platform.
- Monitor your account activity daily
Regular monitoring of your crypto account enables detection of change, which may necessitate a specific action on your part. It also strengthens your safety management, quickly being able to respond to any activity not given your express permission. This maintenance must include checking your account settings, the features of which may be enhanced from time to time. Characteristics are activating text alerts, which report on all account modifications made.
- Invest in a hardware wallet
A crypto exchange is a marketplace where you can buy and sell cryptocurrencies. The nature of these currencies requires a specialized platform for its unique set of complexities. More than 500 exchanges exist and this number is ever-changing. Currently, half of these are being tracked and measured and the other half is in a start-up phase. Centralized and decentralized exchanges differ in relation to the pecking order of their operations and governance. The latter is less exposed to theft and server downtime, which will likely guide the important decision when selecting a reliable and reputable exchange. Digital exploitation is a reality, hence the availability of storing your coins offline.
Cold storage is a wallet which is a hardware device or even a piece of paper with a QR code, into which you can move your currency. Significantly, they are not connected to the internet, except for when you are in your account and trading. While you are in, cyber criminals cannot claim access. Physical theft of your hardware device is possible, but if you alone retain the public key details, you can continue to exchange, even if the hardware wallet is destroyed. Investing in this wallet is an excellent option for a long-term investor or someone who doesn’t transact frequently.
Be aware of fake websites which pretend to lead you towards a solid tip offered by an expert. False tweets, scamming emails, and counterfeit mobile apps are all phishing scams that you should hold the top of mind as you navigate the crypto environment.
Hackers typically target the most profitable industries. Cryptocurrency cybercrimes exceeded $4 billion in 2019. Your crypto journey must include actions to safeguard you from those who seek to manipulate investors.