Seven Best Practices for Storing Your Crypto - Reading time: about 4 minutes
Cryptocurrency is an exciting and rapidly evolving industry that attracts investors from all over the world. However, with great potential rewards come great risks. Safeguarding your crypto assets is essential in an industry that is still undergoing scrutiny from governments and regulators, as is protecting it from potential hacking threats and scams.
One of the most important risks for cryptocurrency investors is security. In this article, we will explore some best practices for securely storing and managing your assets.
Choose a Secure Wallet
Secure wallets are digital storage devices, specifically designed for cryptocurrencies. They offer varying levels of security, depending on which type of wallet you choose.
Wallets can fall into one of two categories: cold or hot wallets. Hot wallets are internet-dependent crypto wallets, typically used for day-to-day transactions and accessed through a mobile app or web interface. They can take the form of desktop or mobile wallets. Because hot wallets are connected to the internet, they are more susceptible to hacking and other security breaches.
A cold wallet, on the other hand, is not connected to the internet. Cold wallets are often hardware devices that take the form of a USB drive or a specialized hardware wallet device. Hardware or cold wallets are often considered the most secure type of wallet, as they store your private keys offline, which makes them less vulnerable to hacking attempts. However, they can be expensive and can take some time to set up. Cold wallets are preferred for long-term crypto storage. They are a better option if you want to hold onto your coins for an extended period of time without needing to access them frequently.
Desktop and mobile hot wallets may be more convenient for day-to-day use, but they are vulnerable to malware attacks. Choose a wallet that best fits your needs, and remember to always keep your private keys safe and secure.
Enable Two-Factor Authentication
Two-factor authentication (2FA) is an additional layer of security that helps protect your accounts from unauthorized access. Most cryptocurrency wallets and exchanges including ProBit Global now offer 2FA, which requires you to enter a code or use a security token in addition to your password to access your account.
Enabling 2FA is a simple and effective way to protect your cryptocurrency assets. If you use a hardware wallet, make sure to enable 2FA for your exchange accounts as well.
Keep Your Private Keys Safe
Your private keys, used to access your wallets, are the keys to your cryptocurrency assets. If someone gains access to your private keys, they can steal your funds. Therefore, it is essential to keep your private keys safe and secure.
One way to do this is to store your private keys offline. Hardware wallets, for example, store your private keys offline, making them less vulnerable to hacking attempts. You can also use a paper wallet to store your private keys offline.
Remember to never share your private keys with anyone, and avoid storing them on a device that is connected to the internet.
Back Up Your Wallet
Backing up your wallet is important in case your device is lost or damaged. Most wallets offer a backup feature that allows you to create a backup of your wallet. Make sure to keep your backup in a safe and secure location.
Keep Your Software Up to Date
Keeping your wallet and other software up to date is important for security reasons. Updates often include security patches that fix vulnerabilities that can be exploited by hackers. Make sure to update your software regularly to ensure that you have the latest security features.
Use Strong Passwords
Using strong passwords is essential for protecting your accounts from unauthorized access. Make sure to use a unique and complex password that includes uppercase and lowercase letters, numbers, and symbols. Avoid using the same password for multiple accounts.
Be Wary of Phishing Scams
Hackers use phishing scams as a common tactic to steal personal information. They often involve fake emails or websites that mimic legitimate ones. Be wary of any emails or websites that ask you to enter your private keys, passwords, or other sensitive information.
Always double-check the website's URL and make sure that it is a legitimate website before entering any information. If you are unsure, contact the company directly to confirm the request.
In conclusion, securing your cryptocurrency assets is essential for protecting your investments. By following these best practices, you can help ensure that your assets are secure. Remember to always keep your private keys safe, enable two-factor authentication, and be vigilant against phishing scams. With the right precautions, you can invest in cryptocurrency with confidence.