What Can I Do to Protect My Cryptocurrency?
One of the major advantages of blockchain technology and cryptocurrency is the difficulty of gaining unauthorized access to or altering a decentralized and secure peer-to-peer network. However, there are many preventive measures you can employ to course alleviate the security risk posed to your machine without having to pay for it.
Look at yourself as a User
Let us start with trying to point out some of the security measures that you may be responsible for as a user. For instance, updates, backups, and strong passwords are integral parts of security. In this article, we will give you some insight on how you can defend your PC or mobile phone and minimize your cryptocurrency winter losses.
The biggest risks in terms of cybersecurity do not come from the blockchain technology or from cryptocurrencies, for instance, bitcoin, or from any other cryptocurrencies in fact. Rather, they emerge in the devices that we use to perform such assets like cryptocurrency, smartphones, computers, and laptops where the wallets and keys are kept and the websites that are used for the transactions, more or less. In essence, any instrument which is used to visit any of the blockchain networks is susceptible to attack. Do the actions that follow to reduce the risk of being exposed to such threats.
Be Alert
People such as you and I have been referred to as ‘the weakest link’ in the computer security architecture. Though we have a plethora of security measures, this should still raise alarms, and we should be able to critically assess the reliability of tools and/or sources. It is a general principle on the internet but becomes even more important when dealing with cryptocurrencies, more so because there is money involved and loss of your assets can occur behind your back.
If you want to protect your assets in the crypto space, it is necessary to establish certain practices and habits that you follow automatically.
Practice Cyber Security
The temptation of using public Wi-Fi networks is pretty hard to ignore. However, it is necessary to check other people’s networks before using them. Some networks and websites are unstable and do more harm than good to any wallets you keep on your devices, unlocking your funds. As a rule of thumb, you should look for ways to keep your funds offline. For those who cannot do without a wallet on the mobile or the desktop, such a wallet should be a password-protected one and should have only a limited balance. In such an instance, using a private email that you never leave unattended and as well, never lend out your devices is a must. When sending devices to be repaired, also, take out all the funds from your wallets operated on those devices.
Pulse Your Software With Fresh Updates
One important but a bit of an internalized rule is to always have all the software updated, applying any updates as soon as they come out. Malware can take advantage of gaps that can be found in any version of software and operating systems for which reason it is very important to be on alert. To cultivate such a practice, one suggestion is to allocate a specific day for everything that concerns updates on all the devices, for example : Fridays.
However, do not activate auto updates for crypto apps since new versions can be faulty. It is advisable to first wait a couple of days to see if an application works properly and then you can install it on your devices. This caution also applies to firmware updates suggested by partnered blockchain companies for the provision of services.
*Use an Encrypted Password Manager
As an ordinary internet user, a lot of accounts have probably been registered by you in the current accounts. It is possible you have also set a single password across many accounts, which is risky. If one password is obtained by an individual, every password owned by that individual would be accessible.
The answer is simple: use different passwords for different services. There is no need to remember dozens of passwords; they can simply be saved in an encrypted password manager such as LastPass or Dashlane. Using your encrypted password manager now will help eliminate the burden of managing passwords in a secured way.
Enable Two Factor Authentication (2FA)
In order to further lessen the chances of your accounts and the assets within them being hacked, make use of the 2F authentication wherever applicable. This is a relatively simple technology to implement, and adds a layer of security to your accounts, be it your google account or any service related to cryptocurrency.
After downloading an authenticator application on your mobile device, and after enabling 2FA on any of your accounts, you will be required to provide a six-digit code in addition to your password every time you attempt logging in. Download the application for the authenticator, examine all the services and wallets in which you take part, and switch on 2FA. This one step which takes between 30 seconds to a minute to implement can greatly enhance your security level.
Employ Hardware Wallets
There might be a certain temptation in keeping your digital assets online, however it is not recommended. Rather, do it as standard practice to never store your assets in web wallets, always use a hardware wallet. Now we advise simple hardware wallets from two proven companies Trezor and Ledger. Both firms have established themselves in the cryptocurrency industry and keep improving their products.
Find a Good cryptocurrency exchange for Trading
It is of great importance to note however that selecting a suitable platform for your digital asset transactions provides a level of security and comfort. Once any decision to engage in cryptocurrencies is made, in the course of setting things up one of the most important tasks is looking for the best platforms in the internet and figuring out what would be most appropriate.
It is easy to get lost given the list of platforms that are vying for your attention. So instead, search for a platform that is secure, regulated, and has a professional team behind it. The platform should have adequate liquidity, have reasonable volumes, and employ sophisticated technology aided by an easy to comprehend interface. Besides, the platform should also accept both fiat and cryptocurrency for better international customer service.
Headquartered in Vienna, Austria, Bitpanda is a disruptive platform for digital assets, bringing together inexperienced and experienced users alike. It allows customers to buy and sell digital assets in a speedy, safe, and easy manner through a large variety of payment channels. The Bitpanda Global Exchange claims to offer some of the lowest fees for professional traders and institutions with a wide number of trading pairs and is able to operate in 54 countries around the world.
Dispel the Odds: Avoid SIngle Points of Failure and Diversify Risks
When concerns of security arises, there is need to always avoid single points of failure. The single point of failure, also known as SPOF, is an element that can stop the entire system’s operations if it breaks down. As a result, make several copies (of files on different USB sticks, for instance), have different wallet accounts, and different passwords.
Once again, we stress the importance of cold storage or hardware wallets. Do not depend on anything that is permanently connected to the Internet or your computer. While we advised earlier on choosing a reliable platform to buy and sell crypto assets, keep in mind that although trading on the internet is fine do not keep your assets there.
When you perform trades on an exchange, it is most certain that you will have some funds on the exchange to facilitate liquidity. But, let them know how much they really need for trading as opposed to how much they would prefer to have on hand. Don’t leave all of your crypto assets in an exchange wallet, if for instance, an exchange gets hacked – look at Mount Gox once more. Nobody is safe and no exchange is totally free from such dangers as hacking.
In Conclusion
Offline, use hardware wallets, but better still, more than one hardware wallet to leave your funds in and in doing so decrease the likelihood of your assets becoming lost through hacking. Develop a practice of these preventive techniques and in this way, do regular audits of yourself so that your activities in the crypto realm are quick, secure and private.
