Cryptocurrencies have been around for a long time, but the question is always the same – whether and how secure we can keep them. In this case, I am not only talking about Bitcoin, but also about other well-known cryptocurrencies such as Ethereum, Litecoin, Bitcoin Cash, Dogecoin, and Tether, but also the popular NFTs.
The value of cryptocurrencies has skyrocketed over the last year. Many people are now investing their savings into these new assets. Unfortunately, they don’t always know how to secure them properly. There are several ways to store your coins, tokens, and other virtual currencies.
Cryptocurrencies are kind of digital tokens that represent ownership rights over assets — whether they’re real estate, stocks, gold, or even virtual items such as games. They’re stored securely in your computer using cryptography, meaning they shouldn’t be counterfeited, hacked, stolen, or altered.
But, do things really work like that?
While cryptocurrencies are convenient because they don’t require banks, exchanges, or other middlemen, they also come with risks. Cryptocurrencies are vulnerable to hacking attacks, double spending (two parties simultaneously spend the same coin), and inflation.
This means you have to find a way to protect your tokens and cryptocurrencies. Well, let’s see how it is possible.
Learn what a crypto wallet is
A cryptocurrency wallet is simply software that enables users to store their cryptocurrencies safely away from hackers and thieves. As technology advances, new types of wallets have emerged over time, each offering unique features and security measures to ensure user safety.
You have to explore your options and even check on reviews online like AZCryptoExchanges to stay informed on wallet and exchange options.
A crypto wallet is either software or hardware, or both. It is used so that you can trade cryptocurrencies and always have an insight into the availability of funds.
There are two basic types of crypto wallets, which are called hot and cold wallets.
A hot wallet is one that is connected to the internet and is always updated online. On the other hand, cold wallets are not connected to the internet and allow you to store your assets offline. They work unilaterally, that is, you can receive money, but you cannot make direct transactions, and hacking is really difficult.
It is up to you to choose what is most practical. One of the best tips we’ve heard is to use multiple wallets so you can maximize security. Divide the whole amount into several parts. So even if one happens to be hacked, you only lose a small portion of your crypto savings.
Safety precautions and measures
Backing up your Bitcoin wallets can save you if something goes wrong. You should make sure to back up your wallets frequently and keep them stored securely.
Keep your wallets up to speed. A pocket full of cash could be a soft spot for thieves. The latest version of your money manager app should include new features that help keep your funds safe. Updating your app regularly will ensure that you’re not vulnerable to any major problems. Your phone or PC needs to be kept current with the latest patches and updates so that you’re protected against potential threats.
Multi-signature features allow multiple parties to sign off on a transaction. It requires at least three signatures to complete any transaction. So if someone tries to steal your coins by taking control of your wallet, he needs to get the permission of at least three people before he can transfer funds out of your account.
Most of the wallets have these features, so it wouldn’t be that hard to implement all these safety features and precautions.
How to ensure you did everything to keep your crypto assets safe and secure?
Use private keys to your wallets all the time. To prevent stolen private keys, use strong passwords, keep them safe, and never share them.
Also, keep the computer or any device you use completely secure by doing these things:
- Keep your cryptocurrencies safe by storing them securely
- Use a pin code for your hard wallet
- Make sure to always use 2FA when logging into your account
- Never post any information related to crypto wallets online
- Store the hardware device properly
- Beware of phishing sites and always check the URL twice
- Use a valid HTTPS certificate
- Always use secure Wi-Fi connections for any sensitive transactions
- Keep your funds separate from each other
- You must whitelist your own IP addresses when withdrawing from an exchange
- You should double-check the crypto address every time
Make sure that you use security measures that you can handle. Some folks never feel secure and go to the farthest lengths to secure their cryptocurrencies. However, they forget they can also lose their cryptocurrencies to their security tools. Learning how to keep your cryptocurrencies safe and secure is an important part of your crypto journey. If you want to be able to use them for anything, you need to know how to protect them.
This conclusion is going to be quite a bit longer than usual, but there are a few key points that we want to pay more attention to.
If you think that losing and stealing cryptocurrencies can’t happen to you, then you have a misconception about the whole concept of cryptocurrencies.
The safest way is cold storage because the chances of hacking are almost zero. Our recommendation is to use them whenever you plan long-term crypto activities.
Never forget that cryptocurrencies are not yet an officially legal way of doing transactions all over the world. But that doesn’t stop hackers from creating fake apps and services that lure you into clicking and giving them all your money and data yourself.
However, this topic is really deep and there are many security aspects about which there is no public awareness at all.
What you can do is constantly inform yourself about these things and be sure that you are always and everywhere safe. And of course, never forget that cryptocurrencies are still volatile. It should be an additional motivation for you to take care of the security of your assets.
We hope this was really helpful for you and your crypto aspirations.