How to Keep Your Crypto Savings Safe? Ways to Protect Your Crypto Wallet
Security online has always been an important issue. Blockchain technology and cryptocurrencies came as a solution – we should not worry about the security of operations anymore, as the distributed ledger technology creates a transparent environment and absolutely secure digital environment. Well, from the one hand, that is true. But the number of hacks and crypto stealing does not seem to be decreasing. Why?
The answer is that the threat comes directly via the cryptocurrency wallet or the online exchange where users store their digital coins.
Every crypto wallet user knows that during the sign-up process, digital wallets asks for information it is necessary to provide. It usually includes full name, personal e-mail, and general address, for example, country.
Digital wallets can track the information, and the private keys which wallets create for their users may be used by hackers. This is the way they can access your wallet. So, how to make the wallet secure and what to do to protect crypto coins? Let’s look into it and first start by discussing what kinds of digital wallets exist.
First: choosing the most reliable wallets
First, digital money can be stored at stock exchange or in the wallet. It is crucial to know that if you are not planning to trade actively making transactions on the everyday basis, keeping your cryptocurrency at the exchange is not the best solutions, as it is mot centralized and can be hacked easily. If you are up for the long-term investment and storage of your digital coins, choose a wallet.
Second, all wallets can be divided into two groups: cold and hot. For the better security, use the cold storage of your altcoins – offline wallets. These are, for example, hardware wallets which store private keys in a hardware device, or desktop wallets, which store savings locally on the PC, without the required access to internet.
Second: securing the wallet
1. Encrypt! Encryption is the popular way to create a protection of the digital wallet and make it secure. If you encrypt, you set a password which everyone trying to access and take your funds has to know. Of course, don’t set the easy password! The password has to be strong and hard to break (let it consist of letters and numbers, including dots, commas, dashes, etc), and you remember it.
2. Backup! First, you should backup your whole wallet. It will assist you in protecting your savings in case of the computer damage or some mistakes. Or in case if your computer is stolen, you will be able to recover your wallet this way if it was encrypted. Once you created a backup for your wallet, you made your funds more secure. But you can make more steps towards your safety and encrypt your online backups. For a greater level of security, you can also backup your wallet into various locations and make regular backups as well.
3. Be careful about your online search! Going online using the device which has your crypto wallet on it, can be potentially dangerous. Websites you go to and wi-fi networks you connect to, can be risky, and may cause harm to your wallet.
4. Be aware of application bugs! Application bugs may lead to the loss of your savings, and of course, you don’t want it. Bugs can appear if you have an auto-update being set for crypto applications. It is better to do updates manually, after they are tested by other people and you are sure that they are reliable.
5. Scams, scams, scams! Be careful! These phishing scams usually come through e-mail or Google advertisements. Watch carefully that everything is spelled correctly in the message of your wallet in the email, and don’t open messages once you see something is not correct.
6. 2FA! What is 2FA? It is two-factor authentication. If your wallet provides a possibility of setting a double authentication of your identity, definitely go for it! The ways to create 2FA are different: you can have you own unique code which is constantly changing, or you can use your fingerprint. You can choose what is more suitable for you, the most important is to ensure you can do it with your wallet.
7. And Don’t Forget Some More Things! Of course, it is also very important to always keep in mind that it is better to create a new account for your e-mail which will be only used for your wallet and making transactions. Also, create a password which will consist of a big number of different symbols, and remember it. Don’t pass the device with your wallet to any service without the additional security measures. Always check addresses where you send payments to several times, and check, check, check everything all the time.