After buying your first cryptocurrency and diversifying your stake into altcoins, protecting your cryptocurrency, as well as online security, should be your concern. Computers aren't very safe. They may have viruses and other bugs that enable you and your data to be spied on by individuals as well as making compulsory adjustments to your laptop.
Ever since the crypto exchange QuadrigaCX founder, Gerald Cotten, died, clients were unable to access a staggering 190 million dollar worth in bitcoin, thus leaving the investors mind-boggled on would they guarantee that they would get compensated for the bitcoin that was lost.
Using Wallets From Unknown Sources
There are a growing number of ‘wallets’ from numerous unknown companies which offer astonishing features, but they are unknowingly malwares in disguise. Cybersecurity experts say that to have a safe transaction of cryptocurrency, one should choose a well known and regulated exchange because it is more likely to have proper safety mechanisms.
Storing Coins In A Cold Wallet
Using a hardware solution, moving your assets to cold storage is the easiest way to save your digital wallet private key as a file on a USB stick. This way, the only way to steal your coins is with the USB wallet in hand, as long as there is no other copy of the private key left on any device connected to the internet.
There are physical solutions for safeguarding coins known as hardware wallets, which are also tailored. These are simple devices for data storage that are specifically designed for this task, and usually look like a USB stick but have a small display on them. Most hardware wallets include additional security features and support holding multiple coin types.
Never Keep All Your Assets In A Single Place
Similar to any typical investment advice, investors should not keep all their assets on a single wallet. If an accident happens where an investor would lose all of its assets for unknown reasons, at least they can keep their investments seemingly protected that would minimize the impact of any loss.
Back-Up And Storage Of Cryptocurrency Keys
The same simple passwords that are used on social media sites should be avoided by investors. It is essential to use at least one multisignature or more than one button to authorize a bitcoin exchange, as this will decrease the likelihood of fraud considerably.
In the same sense of using an offline wallet, in case the keys are lost, the storage of the private keys is required. It is advisable for investors to create a redundancy such as playing it safe and having links. They need to make cryptocurrency stash backups as often as necessary, anytime there is a transaction and especially when an incident occurs.
The Purpose Of Making Strong Passwords
The use of a very strong password or collection of random keys protects your wallet and backups as a powerful password can't be readily recognized or broken. Criminals use complicated password crackers to try and hack accounts, and these tools utilize dictionaries. Therefore, if your password is long and complex, it is harder to crack by hackers.
Never Discuss To Anyone Your Investments
Cybercriminals today are scouring social media sites, online forums, and some other sites to find potential victims for the cyberattack. Thus, investors should keep a low profile on all of the information regarding their investments and accounts. The most important thing to remember is to never talk about investments and portfolios on the internet.
Understanding and following that important thing to do when investing in cryptocurrency, hackers will be having a difficult time trying to exploit your information. Although crypto is giving power to the ordinary people, and as always, great power comes with greater responsibilities.
About the Author:
Joshua Ahorro, is a self-proclaimed geek, he enjoys discussing anything technology related. After work, he makes sure to spend quality time with his small family.