Are you on the lookout for the best ways to secure your crypto?
Let me tell you straight up: Security is a big deal for anyone who owns cryptocurrency.
You’ve probably noticed how crypto has become a big deal globally.
Over the past decade, cryptocurrency has turned into a real goldmine.
Investors and traders have made a ton of money from cryptocurrency. But at the same time, scammers are out there looking to scam people who might not know much about it.
The last thing you want is to end up being a victim. So, it’s crucial to figure out how to secure your crypto.
Think about it: What’s the point of having something so valuable if you can’t keep it safe?
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7 Best Ways to Secure Your Crypto
The best practices to keep your cryptocurrencies safe.
1. Use Strong Passwords
Using a strong password is the first step towards securing your crypto.
As you may already know, they provide the first line of defense against unauthorized access to your crypto accounts.
Here are some simple tips for creating a password that’s tough to crack:
- Length: Use a password that is at least 12 characters long. The longer the password, the more difficult it is to crack.
- Complexity: Use a mix of big and small letters, numbers, and special symbols (like ! or $). This makes your password much trickier to guess. Avoid using obvious stuff like “password” or “123456”.
- Avoid Personal Information: Don’t use things like your name, birthday, or phone number in your password. These are easy for others to guess, especially if they’re snooping around online.
- Do Not Reuse Passwords: Try not to reuse passwords for different accounts. If someone cracks one of your passwords, they shouldn’t be able to get into your crypto account too.
- Change Passwords Regularly: Regularly change your passwords to reduce the risk of a hacker cracking your password.
If you find it hard to keep track of all your passwords, you might want to try using a trusted password manager.
But remember, having a strong password is just one piece of the puzzle when it comes to securing your crypto.
2. Enable Two-Factor Authentication (2FA)
Two-factor authentication is an extra layer of security that requires you to enter a code in addition to your password.
It is another effective way to secure your crypto.
So, if someone gets hold of your username and password, they can’t just stroll into your account.
Why? Because with 2FA, they’d also need to type in a special code – like a one-time code – to get in or send crypto out.
This clever setup means only authorized users can access your crypto account.
The cool thing is that lots of crypto exchanges and wallets offer this 2FA thing.
And the best part? It’s usually really easy to turn on.
3. Avoid public Wi-Fi
Using public Wi-Fi might seem convenient, but it’s not just us who find it attractive – hackers do too. The main reason is that these networks don’t require any special login to connect.
So, if you log into your crypto account using public Wi-Fi, it’s like playing a bit risky.
These networks are often not secure and can be easily messed with.
Why? Well, hackers can sneak into your data and maybe get into your crypto account, taking away your money and personal info.
Let’s break down the risks of using public Wi-Fi:
- Man-in-the-middle (MITM) Attacks: Picture a hacker sitting in the middle of your data’s journey from your device to the public Wi-Fi. They can snatch your login details and personal information as it passes by.
- Unsecured Networks: Public Wi-Fi is often not secured, which means practically anyone can hop on and maybe grab your data.
- Fake Networks: Hackers can set up fake networks that look totally legit but are basically traps designed to steal your data.
To secure your crypto, some people suggest using a VPN when dealing with crypto accounts.
Why? Because a VPN can encrypt your data in a protective layer, making it hard for hackers to snoop around.
It’s like having a secret tunnel between your device and the VPN server, making it tough for hackers to intercept your data.
Read Also: Best VPNs for your Crypto Accounts
4. Avoid Unreliable Crypto Exchange
You know, there have been times when crypto exchanges vanished along with their customers’ money, leaving them in a real mess.
Take QuadrigaCX, for instance. It was a Canadian crypto exchange that went bankrupt in 2019 when its boss, Gerald Cotten, passed away suddenly.
They said Cotten was the only one who could access the codes that controlled the money – and when he died, so did access to over $190 million in cryptocurrencies.
Then there’s Mt. Gox, a Bitcoin exchange in Japan.
Back in 2014, it went bankrupt after losing a staggering 850,000 Bitcoins – that’s around $450 million!
And these aren’t the only examples. It really shows why you’ve got to be careful with which crypto exchanges you use.
Here’s how you can identify unreliable crypto exchanges:
- Research and Due Diligence: Before you trust an exchange with your money, do some digging. Find out if they’ve got a solid history of security, if they’re open about how they run things, and if they’re serious about protecting users. Check out reviews, check community forums, and see what people are saying about them.
- Check for Security Features: The best exchanges make sure your money’s safe. Look for ones that offer two-factor authentication, cold storage for a significant portion of funds, and regular security audits. These are all signs they’re taking your safety seriously.
- Verify Regulatory Compliance: Ensure that the exchange complies with relevant regulations and has transparent policies. Regulatory compliance adds an additional layer of accountability and can be an indicator of a reputable and secure platform.
By sticking to reliable exchanges, you lower the chances of something going wrong with your crypto.
Read Also: My Recommended Crypto Exchanges
5. Diversify Your Crypto Storage
In the world of crypto, there’s a saying: “Don’t put all your eggs in one basket.” This means it’s a bad idea to keep all your crypto in one place.
It’s not just a cool saying; it actually makes a lot of sense.
Let me break it down for you:
- Spread Crypto Across Different Wallets and Exchanges: Imagine if you kept all your money in one wallet or on one crypto exchange. If that place has a problem, like getting hacked, you could lose everything. By using different wallets and exchanges, you spread out the risk. So, if one place has a problem, your other money is still safe.
- Reduce Risk Exposure: Each way of storing your crypto has its own weaknesses. But by using different methods, you lower the chance of everything being at risk at once. For example, if there’s a problem with a “hot” wallet, your money in a “cold” wallet stays safe.
So, remember: don’t put all your crypto eggs in one basket. Spread them out, mix them up, and keep your money safe!
I highly recommend using more than one crypto exchange.
Read Also: How to Choose a Crypto Exchange
6. Beware of Phishing Scams
Loads of hackers try to steal your crypto using something called phishing scams.
They set up fake websites or send phishing emails to trick you into giving away your login details, private keys, or other important info.
Here are some tips to help you steer clear of falling for their tricks:
- Be Cautious of Unsolicited Emails or Messages: If you get an email or message out of the blue that looks like it’s from a legitimate company, like a crypto exchange or wallet provider, be careful. Don’t click on any links or download stuff from senders you don’t know.
- Double-check URLs: These scammers often use fake website addresses that look similar to the legitimate ones. So, before you put in any sensitive info, make sure the website address is right and starts with “https” to show it’s secure.
- Be Wary of Offers That Seem Too Good to Be True: Sometimes, these scammers promise free tokens or airdrops to lure you in. But remember, there’s no such thing as free money. If something sounds too good to be true, it probably is.
By keeping your eyes peeled and taking care, you can lower the chances of getting caught out by phishing scams and securing your crypto.
Read Also: How to Avoid Crypto Scams
7. Use Cold Wallets
Keeping your crypto connected to the internet might be more convenient, but it comes with risks like viruses, hacking, and phishing scams.
That’s where cold wallets, also called hardware wallets, step in.
A cold wallet stores your cryptocurrencies offline, making them safer from cyber threats.
Here’s why using a cold wallet to secure your crypto is a smart move:
- Provides Maximum Security: A cold wallet is like a fortress for your cryptocurrency. Since it’s not online, hackers find it nearly impossible to access your private keys and steal your funds.
- Protects Against Phishing Attacks: Cold wallets save you from the headache of phishing attacks. Online wallets are often targeted, tricking people into handing over their login details. But with a cold wallet, your keys stay offline, so hackers can’t get their hands on them.
- Easy to Set Up: Setting up a cold wallet is easy. Most come with simple instructions and user-friendly interfaces, making it easy for you to send and receive cryptocurrencies once it’s all set up.
- Offers Long-Term Storage: Cold wallets are your go-to for long-term storage of crypto investments. Unlike online or software wallets that can be vulnerable to hacking, cold wallets provide a secure, long-term solution for keeping your cryptocurrency safe.
In a nutshell, if you want a reliable way to secure your crypto investments, cold wallets are the way to go.
Excited to learn more about Bitcoin and cryptocurrencies? We’ve got some awesome resources below to help you out.
- 7 Best Practices for Crypto Wallet Security
- Best Cold Wallets for Storing Crypto Offline
- 5 Trusted Crypto Exchanges to Use
- How to Research a Crypto Project Properly Before Investing
- 7 Common Mistakes Crypto Investors and Traders Make
- Most Common Crypto Scams and How to Avoid Them
- 20 Things You Should Never Do as a Crypto Investor/Trader
The information provided here is intended for informational purposes only and should not be solely relied upon for making investment decisions. It does not constitute financial, tax, legal, or accounting advice. Additionally, I strongly recommend that you only invest in cryptocurrency an amount you are comfortable with potentially losing temporarily.