The cryptocurrency industry has expanded dramatically since the creation of Bitcoin, drawing investors from all spheres of society. For potential investors, however, rising popularity also means rising danger.
Hackers, scammers, and other criminal types see this as an ideal opportunity to exploit unsuspecting new investors. Because they are entirely digital, cryptoassets are unbacked by anything tangible.
Being security conscious is essential for the crypto community. Knowing the best ways to secure your investments is necessary if you’re considering investing in cryptocurrencies. The following tips can help you safeguard your digital assets.
The Power of Two-Factor Authentication (2FA)
Enabling two-factor authentication whenever you can is a crucial decision, especially for email and anything financial. When the code is sent by email, a skilled hacker may be able to bypass 2FA (especially if the victim does not have all of the above-recommended security practices in place).
A transaction cannot be completed without a second layer of verification from you, which is a feature of several wallets. In order to gain that extra layer of protection, it is preferable to use this option if your wallet has it.
Utilize Crypto Wallets
There are many ways to store cryptocurrencies. Tech-savvy users may prefer to hold their bitcoin, USTC coin, and other currencies directly on their own hardware wallets instead of using internet exchanges to store tokens.
The choice of “hot,” “cold,” or a combination of the two storage methods is available to cryptocurrency owners.
With a hot wallet, owners may easily access their coins so they can spend their cryptocurrency. A hot wallet is connected to the internet. Convenience comes with a cost: a chance to encounter dishonest people.
By keeping them offline and storing your cryptocurrency in a digital wallet, cold storage helps secure your digital assets. These online-decoupled digital wallets are less prone to hacking due to this.
Using cold storage might reduce the risk of losing your cryptocurrency by keeping it on an exchange. This entails taking your digital assets offline and storing them in a physical location, but it also means that your assets will be less liquid and more difficult to move quickly.
Make Your Password Strong to Protect Your Crypto
Majority of us don’t prioritize password security and we forget that we can change our password as often as necessary. Make it a routine to update your passwords frequently if you want to safeguard your accounts and coins.
Your account passwords need to be exceedingly complex—at least 16 characters—and one-of-a-kind. Password managers like 1Password or Dashlane can be used to create and remember your passwords because doing it on your own is not easy.
Safeguarding your seed phrase
Protecting your cryptocurrency is a vital component of its functioning. Using your twelve-word phrase, you can retrieve your cryptographic key on a different device. You must correctly store your security phrase so that no one else has access to it.
Some people suggest memorizing the phrase in several separate places, such as various fireproof safes. Others advise keeping the entire phrase in one place and dividing it among several memorization aids, such as personal items that are difficult to lose or forget.
You may also want to use a password manager to store your seed phrase in an encrypted form or use different password managers to store different parts of it.
Buy and trade cryptocurrency only from reputable sources
Security has been a critical factor in the growth of cryptocurrency. Before deciding which cryptocurrency exchange to use, investors should study the security features offered by each platform.
They should verify that the platform is legitimate by checking its certificates and qualifications, KYC requirements, and anything else that might suggest reliability. A major platform like KuCoin has strong security features and is known for having high-quality security measures in place.
Watch out for Fraud
When protecting your cryptocurrency holdings, it’s essential to use appropriate security tools, but you should also review your online presence and avoid online boasting about your holdings.
There are multiple types of scams like phishing and mining pool frauds but unreliable cryptocurrency websites are one that can cause you to lose a lot of money. Suspicious websites imitating legitimate exchanges are made by con artists with the intention of stealing account information.
Whether new or established platforms, these websites make every effort to pass for reliable cryptocurrency exchanges or platforms. Before entering any credentials or logging into your account, double-check the website’s address.
As the world of cryptocurrencies expands, so does the risk of cyber attacks on users’ digital assets. In addition to basic cybersecurity precautions, it is crucial that cryptocurrency users follow safe storage procedures and be security-conscious at all times.
The single most crucial factor in cybersecurity and protecting your cryptocurrency is to constantly be vigilant and careful. Hackers are constantly improving their skills, especially in the crypto industry. Every day a new fraud emerges, and nobody wants to be a victim.