The cryptocurrency craze has swept the world. People are mining it, buying it, and trading it like crazy. However, not everyone is aware of keeping their coins safe while they’re out there trading in this volatile market. If you’ve been thinking about getting into cryptocurrencies but don’t know where to start or what precautions to take, this blog post is for you.
We’ll cover everything from securing your private key with a hardware wallet to backing up your seed phrase; these nine steps will help you keep your crypto-assets safe.
Let’s take a look at these safety ways.
- Address digital wallet security in a mixed manner
Always use strong passwords for your wallets. Remember that it is a common convention not to keep money in an exchange or on an Internet-connected device because they can be hacked into by criminals who may then steal all of the funds you have deposited there.
If you choose to store them somewhere else, always follow the steps above to ensure full safety measures are taken against possible threats from hackers or computer viruses. Bitcoin Up is an amazing trading platform you must use.
- Two complex passwords are essential
Use a unique password for each account. A strong, complex password is essential to protecting your cryptocurrency and wallets from hackers. Your passwords should be between 12 and 30 characters long, not include words found in the dictionary or any proper nouns such as names of places or people you know, contain numbers (0-99), symbols (#@#!@), lowercase letters(a-z), uppercase letters(A-Z), and capitalized case lettering.
- Avoid disclosing the secret key
If you have a secret key, keep it away from your computer. That’s because if anyone gets access to the file that contains this string of characters, then they can steal all of your cryptocurrency. If you are using an online wallet, ensure that the service has a good reputation. Remember, if someone gets access to your private key, they can take all of your cryptocurrency in seconds.
- Avoid utilizing provider-hosted wallets
If you use a hosted wallet, such as an exchange, you trust the third party with your assets. If that company were to go bust or be hacked suddenly, then your funds would be at risk. It is much safer to use a self-hosted wallet that you control yourself.
- Cold wallets have disadvantages for busy traders
Because the private keys are offline, it is impossible to sign off for transactions that happen quickly. Additionally, if your desktop wallet gets hacked or infected with malware (like CryptoShuffler), there’s no way you can stop an attacker from taking all of your coins since they’re in cold storage.
- Hot wallets are much handier for traders, but the losses may be higher
For long-term storage or savings, a hardware wallet is recommended. They are not as user-friendly as hot wallets, but they offer better security. Cold storage should only be used to store large amounts of cryptocurrency that you don’t plan on spending shortly.
The Bottom Line
Make sure you keep your cryptocurrency safe by following these tips. Don’t let yourself become a victim of theft or fraud. Stay vigilant and take the necessary precautions to protect your investment.