Cryptocurrency investments have been the hype for years because of the many benefits. Among the benefits is the ease of investing in cryptos. You don’t need a broker to buy crypto as you only need to register in a crypto exchange wallet, fund it and buy from the market.
Because of this, many people from across the globe are into crypto investments, making it a ‘market’ for hackers. Hackers can easily access your crypto exchange wallet account and steal your digital assets, leaving you with nothing. You can combat such cybercrime by considering the following ways to keep your investments safe:
1. Secure Your Seed Phrases
Crypto wallets these days can hold billions of different keys. In fact, almost every wallet has seed phrases. These are collections of words that the owner will use to generate the keys of their wallet, which make such storage known as seeded wallets. Anyone who knows your seed phrases can gain access to your crypto wallet. Thus, it may be best to do the following to secure your seed phrases:
- You need to consider what material to use when storing your phrase. For instance, you may want to engrave the seed phrase onto the metal instead of writing it on paper that can easily get lost or destroyed. Moreover, you also need to ensure that where you’ll keep it is safe. Even if you’ve engraved it onto metal, leaving it at home may not be recommended unless you have a safety deposit box. If there’s none, you may need to store it in your bank’s safety deposit box.
- When using offline devices such as a flash drive or cold wallets, you may want to have a backup. That way, you still have the other device or devices when one breaks. Of course, secure them in a safety deposit box so that no one can access them.
- Avoid saving your seed phrase online. If you keep it on your computer, the seed phrase can be compromised once a hacker controls your PC remotely or when your device has downloaded a virus.
2. Use A Virtual Private Network (VPN)
Performing a monetary transaction online can be risky if your internet connection isn’t safe. Hackers can use ‘man in the middle cyber attacks to steal data on unsafe networks. Using a VPN allows you to avoid such types of attacks. A good VPN can keep every transaction safe and secure, especially when accessing your online wallet or crypto exchange accounts. That’s due to the VPN’s 256-bit encryption methods, wherein your data is protected with encryptions. As a result, even the most experienced and skilled hacker may find it hard to decipher the data.
3. Invest In Cold Wallets
Although cryptocurrency exchanges take security precautions, they’re still at risk of cyber attacks or hacking. That’s why you must not store your digital currency assets there. What you must do is keep them in cold wallets, also known as hardware devices or cold storage.
Cold wallets are flash drive-looking devices that act as storage for coins or tokens. As they’re offline devices, hackers can’t access them. Moreover, access to the cold wallets requires decrypting the cold wallets with a password-like bit of code known as private keys. However, you shouldn’t lose your password key because, when you do, you can’t access the wallet’s contents: your cryptos.
4. Use Reputable Crypto Exchanges
Although you’ll not store your cryptos in a crypto exchange, you’ll still use such a platform to buy or sell cryptos. You never know when cyber criminals will attack. For instance, you purchased many cryptos when the exchange suddenly became inaccessible. When this happens, you can’t recover or trace where your cryptos have gone. With such, use trusted platforms.
Do this by carefully researching and understanding the security features of each platform, which is among the essential security tips for beginners in crypto. Choose the ones that store cryptos offline using air-gapped devices, use SSL/TLS encryption, and require multifactor authentication.
When you decide to use any platform, you must use complex passwords. If you’re using multiple crypto exchanges, you must have different complex passwords too. That way, you can strengthen the security of your cryptos.
Keeping your cryptocurrency investments safe is possible even if there are experienced and determined hackers lurking around. As long as you keep your seed phrases secure, use VPN for transactions, store cryptos in cold wallets, and use reputable crypto exchanges, you can prevent hackers from stealing your assets. Thus, start trying these safekeeping methods now and not later.
Author’s Bio: Edgar Castillo is a financial investor, consultant, and writer who specializes in all things cryptocurrency. He shares his knowledge of the ever-changing crypto landscape through his blog contributions. When he’s not monitoring his stocks and assets, Edgar loves to go for a hike around the country.