Protecting your digital assets is not an easy task given the fact that the ever-rising popularity has resulted in a surge of investors and traders into this field.
Simultaneously, there is also a significant rise in scams and hacks resulting in heavy loss.
Therefore, it is essential that you know the best ways to protect your crypto tokens and store them securely in your digital wallet.
In addition to knowing about all the safety measures, you should also stay updated with the other factors that will enhance your crypto assets’ security. These are:
- The latest news on security which will inform about the happenings in the crypto market and the developments made in the security aspect of the crypto coins.
- The attack and hacking techniques are also good to be aware of so that you can take accurate precautionary measures to ensure that your digital wallet is not subject to such malicious attacks.
- Also know about the latest prevention strategies by going through different reliable websites and blogs of experts suggesting newer and better ways to protect your digital assets.
However, hacks and heists still happen since the hackers come up with ingenious ways to steal your money or reroute it in plain sight where you watch your fund moving out and you can do nothing about it.
- 13 Best Ways to Keep Crypto Safe
- 1. Choose a Hardware wallet
- 2. Choose a Secure Internet
- 3. Use Several Wallets
- 4. Use a secure device
- 5. Strong and Complex Password
- 6. Avoid phishing mails
- 7. Backup
- 8. Update software
- 9. Multiple Signatures
- 10. Avoid Storing Private Keys with the Exchange
- 11. Check the Address of the Recipient
- 12. Make Smaller Transactions
- 13. Few Other Safety Measures
13 Best Ways to Keep Crypto Safe
The best way is to protect your private key, and along with that follow these simple yet effective steps to prevent your digital assets.
Here is a guide that will help you a lot in that matter, teaching you about everything from choosing the right wallet to the protective measures to follow.
This will enable you to avoid the most common risks and enhance your crypto security. Check out Best Crypto Journals and Journal Apps.
1. Choose a Hardware wallet
The first step to ensure safety and security of your digital assets is to store them in a cold wallet, also known as a hardware wallet.
The benefit of using a cold wallet is that it is typically not connected to the internet and therefore is much more secure than a hard wallet.
This means that it is less vulnerable to cyber attacks because the private keys will be encrypted making it difficult to intervene.
2. Choose a Secure Internet
Since most of your crypto trading and transactions will be made online, you should always make sure that you use a secure internet connection and not those available in public places with free Wi-Fi service.
Moreover, to ensure a much better security, choose a reliable VPN or Virtual private Network provider, even if you are using your home network.
This will enhance privacy because your IP address and location will be changed by the VPN which will keep all your browsing activity secure and prevent the threat actors from intervening.
3. Use Several Wallets
While dealing with cryptocurrencies, there is no limit in wallet creation. Therefore, you should take advantage of this aspect the most.
Make sure that you create several crypto wallets. This will enable you to diversify your crypto portfolio and investments making it less vulnerable to cyber attacks.
The best ways to do so is use a particular digital wallet for your daily crypto transactions and store the remaining in a different wallet or wallets.
This will not only keep your investments safe but will also mitigate any loss you may incur due to any potential breach to the account.
4. Use a secure device
The personal device you use for crypto transactions should also be absolutely secure.
Check that it is up to date and has all possible and latest anti-virus software to protect your system from any possible vulnerability.
If your system comes with a weak or no firewall protection the security of the device will be weak and it will be much easier for the hackers to take advantage of it and write codes to favor their malicious activities.
5. Strong and Complex Password
You must change your password on a regular basis and ensure that it is hard to crack. A password is the basic security of any account and should have a combination of upper and lower case letters, numbers and special symbols.
Make it as strong and complex as you can so that it is difficult for others to guess. Abstain from using the same password for different devices and apps, social media accounts, and multiple digital wallets.
Also, choose a Multi-Factor or Two-Factor Authentication at least for enhanced security.
6. Avoid phishing mails
You should not get attracted to any phishing emails and ads. More often than not, these ads and mails are malicious and scams.
These emails look very authentic and may even come with fake domains of affiliated employees or organizations.
Be careful of these rampant mails and ads while making crypto transactions that often come with unknown and suspicious links.
Keeping a proper backup of your entire crypto wallet is a good option to choose early and regularly.
This will help you to recover your currency in the wallet from its history, in case there is a failure in your system.
Store the wallet.dat files in multiple locations such as on the hard drive, on a USB, or on CDs. And, also set a strong and complex password for your backup.
8. Update software
You must keep the software updated to prevent it from being a soft and easy target for the hackers.
All the latest versions of wallet software typically come with updated security solutions and protocols which will enhance the safety of your crypto coins and help you to evade a major security issue and crisis.
9. Multiple Signatures
This is a popular concept to ensure security of the crypto wallet and coins.
In this process, every transaction that you wish to make will require approval from at least 3 or 5 people within the specific network.
This will eliminate the threats of theft since it will not be possible by a sole controller or a server to send or withdraw coins to and from a specific address.
10. Avoid Storing Private Keys with the Exchange
When it comes to storing your private keys you should not share it or store it with the exchange.
Since these are the keys to access your digital wallet, storing them with the exchanges will allow easy access and thereby increase the risks of theft from your digital wallet.
These exchanges can get hacked easily and often increase the vulnerability of your wallet.
11. Check the Address of the Recipient
Do not rush while making your transactions because, in most of the cases, once you make a transaction, it is often irreversible.
This means if it goes to the wrong address your assets are gone! Also, there are a few malware that may also interfere with the address of the recipients and change the destination address.
Therefore, when you make a transaction, you should double check that the address of the recipient is correct.
12. Make Smaller Transactions
In order to deal with your crypto coins safely, you should make smaller transactions. You will be better off if you do so through different exchanges as well.
This will allow you to know whether or not an exchange is operating properly. It is the key factor to secure your fund.
13. Few Other Safety Measures
You may also take some other safety precautions to add to the security of crypto coins. Some of these best practices are:
- Not keeping the crypto assets in an exchange for too long a period than it is necessary
- Not boasting of your holdings in public especially with an identifiable address or in your real name
- Trusting only what is displayed on your hardware wallet screen
- Verifying all the information
- Checking the website address of the exchanges before logging in to see whether or not it is correct and starts with ‘https’ and
- Creating a proper recovery contact with someone you can trust and tell about the location and even passwords of your wallets
- Using a distinct email for your crypto account and communications
- Dividing one wallet in two computers along with offline signing feature for making transactions
- Not posting your home address, email address, or phone number on social media to minimize the risk of identity theft.
However, with all these steps to follow, make sure that you do not overcomplicate the security of your digital wallet by using too many tools that you cannot handle.
Remember, striking a perfect balance between security and complexity is the key to master the art of keeping your crypto coins safe.
With the significant evolution and popularity of cryptocurrency over the years, keeping your digital assets safe is your own responsibility.
You must take all possible safety precautions mentioned above in order to secure your wallet.