If you are a cryptocurrency investor or going to become one, you probably know that it is very important – to keep your crypto holdings as safe as possible. You can read some security tips to find out how to do it.
Store Private Keys Offline
It should go without saying that your private key is absolutely private and should not be known to anyone except for you. For example, you can store them on a computer that has no internet connection in order to not fall prey to malware or hacker attacks. Also, private keys can be stored on a piece of paper hidden in a secure place.
Make Use of Hardware Wallet
You may already know this, but using a hardware wallet is perhaps the safest way to store your cryptocurrency. This wallet is an offline storage so hackers won’t be able to steal your coins or tokens from such a wallet.
Secure Your PC
Always be aware of whether your antivirus software is up to date, as well as any other security options. It only takes just one security vulnerability to have your computer hacked – you must remain vigilant at all times.
Kept in a secure place, a backup of your cryptocurrency wallet may save you from hardware failures and a lot of human slip ups. It will also let you restore your wallet in case your PC or phone gets stolen.
Protect Your Identity
As much as you can, do not divulge any piece of information which can be used to access your personal information – PINs, phone numbers, email addresses, passwords, etc. Not even your mother’s maiden name or the name of your first pet – those are common backup questions. You should also avoid suspicious transactions to protect your funds.
Use an Escrow Service
When you need to buy or sell something and you aren’t sure who is on the other side, you can use an “escrow service.” In these cases, the person who needs to make the payment sends their Bitcoins to the escrow service while they wait to receive the item they are buying. Meanwhile, the seller knows their money is safe with the escrow service and sends the agreed item. When the buyer receives the merchandise, they notify the escrow service to finalize the payment. That way, both the buyer and seller remain safe.
Use Two Factor Authentication (2FA)
An additional layer of security is never bad. It may be tiring to constantly go through this authentication, but you are better off than losing your coins. 2FA includes a second layer of protection wherein after passwords the system sends in a verification code on trusted device so it becomes a bit difficult for hackers to invade this protection.
Use Multiple Signature (MultiSig)
This is an additional step created mainly for corporations, but anyone can really use it. To complete the transaction, several people need to allow it and the potential for misuse of funds is minimized.
The smartest thing to do when it comes to your digital wealth is to keep your mouth shut about it. That means no bragging about how much you have made on your last trade on crypto trading groups, no telling people in bars after a few drinks that you bought bitcoin “years ago”, and no pictures of your bitcoin wallet to show off your wealth online. There is zero benefit to bragging about your crypto wealth. Only downsides. Potential violent attempts to access your wealth is one of these downsides.