Cryptocurrency Security Tips for Now
Cryptocurrency Security Tips for Now
When it comes to cryptocurrency, it’s not the blockchain or crypto you need to be worried about. As a matter of fact, blockchain technologies are secure because it would take an unrealistic amount of computing power to hack them.
However, as human beings, it's our own habits and systems that can let us down. The technologies we use to interface with crypto and our conventional security methods aren’t nearly as secure as the technology itself.
With that in mind, here are some tips to minimize human error and keep your crypto secure. Especially concerns after you created a bitcoin exchange platform and thinking about the integration of cold wallet storage to minimize risks.
If you run a crypto business, the security of your crypto assets is key to success along with an effective marketing strategy. While the former might come naturally to you, a guest posting service can help you with the latter if that’s not your expertise.
Phishing is a common way to try and take advantage of people online. Phishing scams work by trying to get people to freely give them their personal details by acting as a legit business. Hackers create a fake, version of the exchange or web wallet page which looks like exactly as a true one.
People give their personal information voluntarily, getting onto even bigger trouble because then they are not able to blame someone else. Always make sure that the crypto-related emails you get and the websites you visit are from authentic sources and that their email and web addresses are exact matches.
The blockchain itself might not be hackable, but crypto exchanges certainly are. Although they are a convenient way to exchange and trade cryptocurrencies, they aren’t secure enough to save your money long-term. Just look at the $460 million Mt. Gox hack or the more recent $60 million Zaif hack.
Besides, a more secure option is to save your crypto in a private wallet. Although web-based wallets are convenient and more secure than exchanges, they are still vulnerable to phishing and other attempts at hacking. An offline wallet stored on your computer called a “cold wallet”, is where you should store the bulk of your crypto when not actively using it.
What do we mean? We are talking about a piece of hardware made for the sole purpose of securely storing your crypto money. The private key of the wallet holder is stored in a protected area in the microcontroller and can’t be transferred off of the device.
The most important thing is that it can’t be used by someone else if they don’t know your private key or have your seed key paper. However, if you lose your device and your seed without a backup, your crypto will be gone forever.
Two-factor authentication is an effective way to secure all your interactions online. In addition, you can enable it with most reputable crypto exchanges and crypto software wallets. Even if someone knows your username and password, they won’t be able to do anything if they can’t get the code sent to you via email, SMS, an app, or an authentication device.
A private key uniquely identifies your wallet in combination with the public address and allows you to access and use your funds.
This scam is very profitable for the people running it and those in the inner circle, but others stand to lose almost everything they invest.
It may be a good idea to invest in multiple cryptocurrencies and to not hold all your crypto in a single exchange or a web-based wallet. Get a separate hardware wallet for each crypto that supports it. That way, if one gets compromised, your others will still be safe.
Security is not just about protection from other people. You can also lose any of your devices or access details at any time. If you own crypto on any physical device, make sure to backup it up using USB sticks, other computers, or hardware wallets. Designate one device as your ultimate backup that you never directly connect online or use in transactions.
With crypto being such a hot right now, there will always be some unscrupulous individuals trying to make a quick buck. Every day, new scams promise huge returns for investors or early adopters. Chances are if it sounds too good to be true, it probably is.
There are also many underground elements operating in the crypto industry. While it might seem reasonable to conduct transactions outside of the usual channels, be careful when meeting someone in person or dealing over unregulated platforms.
And remember, it’s not the crypto technology that needs to change, because they are already safe enough, but we need to take responsibility for our own security.
#1. Avoid being lured by a phishing scam
#2. Use an offline wallet to save your cryptocurrency
#3. Get a physical cryptocurrency wallet
#4. Enable two-factor authentication
#5. Store your private keys securely
#6. Keep your computer (or phone) secure
#7. Avoid scams like “pump and dumps”
#8. Diversify your crypto portfolio
#9. Backup, backup, backup
#10. Finally - be careful who and what you trust