Ways to Keep Your Cryptocurrency Safe

As you may know, if you’ve delved into the cryptocurrency space, it’s important to store your cryptocurrencies in a wallet. However, security doesn’t stop there. There are various other factors to consider. In this post, we’ll go over just those.

Choose Your Wallet Carefully

Cryptocurrency wallet - definition and example
According to BlockGeeks.com: “When a person sends you bitcoins, they are essentially signing off ownership of the coins to your wallet’s address. To be able to spend those coins and unlock the funds, the private key stored in your wallet must match the public address the currency is assigned to.”

While most platforms, like a cryptocurrency exchange, would have you believe storing assets there is safest, that’s not really the case. Sure, store some assets there if you’re a day trader for easy access. Otherwise, you’ll want to hold them in a different cryptocurrency wallet in cold storage.

Cold storage means holding your assets offline. The best places to do this are in a paper or a hardware wallet. That way, no hackers or bad actors can break into your wallet and steal your private keys.

Keep Your Assets Private

Don’t look at your cryptocurrencies while in public. Wi-fi networks in places like coffee shops are open to anyone with the know-how. If you log into your wallet on one of those networks, smart users can see your information. That, and you don’t want anyone looking over your shoulder to see your assets.

In that same vein, don’t discuss your investments or profits with other people. Keep talking about your crypto to trusted family members and friends. Otherwise, you’re risking becoming a potential target. This extends to online use as well. Don’t talk about big profits on a forum or somewhere similar.

Utilizing a VPN when logging into your wallet is a good idea here. That way, no one can access your IP address and access your information.

Use a Password Manager

Don’t use an easy password to secure your cryptocurrencies. Family or pet names are a no go. Hackers know how to look at your information and can guess these things easily. Utilize a password manager to generate a unique, strong password that can’t be easily cracked.

This might go without saying, but don’t use a password you’ve used for another account, either.

Take Advantage of Security Features

Depending on your wallet of choice, you might see various levels of additional security features. Two-factor authentication is one. Make sure to set this up, so no one can log into your account unless they have your phone as well.

That, or you can even set up a multi-signature wallet. These don’t allow anyone to access them without the signature of a trusted party. A significant other or trusted family member is a good choice for this.

Use a Valid Wallet

When looking for cryptocurrency wallets, pay attention to user reviews. Make sure to utilize a wallet that users praise. Otherwise, you’re putting your keys at risk on a lower security platform.

Additionally, consider dividing your cryptocurrencies into various wallets. Take a look at different wallets that review well, and separate your cryptos into each. You can keep the majority in one wallet and a smaller amount that you intend to use more often, in a different one.

Use Wallet Backups

Most wallets offer the option to back them up. This means you’re copying your private keys to another place, in case you lose access to the initial wallet. That way, even if someone breaks into, say, your exchange wallet, you can still manage your cryptocurrencies from a backed-up hardware wallet.

Keep Everything Updated

Finally, ensure your wallet is constantly updated. Most companies consistently update their wallets to keep their security features as strong as possible. Making sure you’re keeping up with these updates is vital.

Now that you’re aware of how to protect your cryptocurrencies, make sure to do some research and pick the best place to do so. The right wallet will keep you at ease when storing your digital assets.

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