Cryptocurrencies have been the most trending topic that is spoken worldwide these days. With this cryptocurrencies have become a popular target for hackers and scammers. Cryptocurrency security encompasses everything you need to know about the potential dangers with cryptocurrency, as well as the fundamentals of what you can do to make your setting related to your crypto investments or trades safer and safeguard your crypto assets. This article lists the potential tips for you to keep your crypto safe.
Fake Crypto Giveaways
Crypto giveaway scams are online posts, usually on social media, that invite users to deposit crypto to an address with the promise the sender will receive double or more back. This type of fraud has been around since the initial coin offering boom of 2017 and tends to abide by a very rigid format. This makes fake crypto giveaway scams easy to spot once you know what to look for.
Avoid Public Wi-Fi
Wi-Fi can divert your browser to any page. This may sometimes be a mimic version of your exchange or wallet. They will also be able to gather the data transmitted through the network, in case it carries the password you had typed. If you are accessing your wallet from public Wi-Fi, be sure to use a Virtual Private Network (VPN). It is a method used to add privacy and security to private and public networks, like the internet and Wi-Fi hotspots. VPN is mostly used by businesses to protect sensitive data.
Beware of Phishing Scams
Phishing scams are becoming increasingly difficult to detect as malicious agents take greater care in creating seemingly real emails from legitimate companies. Many will encourage people to click on links that instantly infect the device with malware, giving the perpetrator full access to information stored on it. Other phishing emails will redirect users to imposter websites and ask them to reset their passwords, send money or reconfirm their seed words.
Diversify Your Investments
Diversification is a key to any good investment strategy, and it holds when you’re investing in cryptocurrency too. Don’t put all of your money in Bitcoin, for example, just because that’s the name you know. There are thousands of options, and it’s best to spread your investment around to several currencies.
Use a Hybrid Strategy
Online wallets are becoming increasingly popular, attracting the attention of hackers. The majority of a consumer’s cryptocurrency should be stored in offline or physical wallets, with only a small amount kept in an online wallet. The physical wallet should be kept safe, such as in a safe or a safety deposit box. Separating the private and public keys is also a good idea. When possible, both should be secured using complex passwords and multifactor authentication.
Use Strong Passwords
Use strong passwords to log in to websites on a clean smartphone or laptop and a secure network. In addition, enabling two-factor authentication (2FA) can improve security by requiring an OTP sent to your phone/email anytime you log in. This action can be seen in your internet banking website, and any other website that allows using a Google/Facebook account for authorizing a login. Similar 2FA functionality is available on crypto exchanges as well.
Keep the Secret Key to Yourself
The secret key is used to verify that the person sending or receiving the digital currencies is the wallet’s owner. Cold storage is the safest technique to store your private key. Printing out your key and erasing all digital traces of it is what cold storage entails.
Use Cold Storage
You don’t have to go 300 meters underground, but you should keep the majority of your crypto “cold”, that is, air-gapped and offline. Only keep an amount in exchanges and online wallets that you are willing to lose. You can either build an air-gapped computer by removing the network card from your PC or laptop (Tails is an operating system that you can run offline) or buy a hardware wallet. When generating the seed phrase, plug your hardware wallet into a wall outlet to keep it as cold as possible.
Prepare for Volatility
The cryptocurrency market is a volatile one, so be prepared for ups and downs. You’ll see dramatic swings in prices. If your investment portfolio or mental wellbeing can’t handle that, cryptocurrency might not be a wise choice for you.