The blockchain is the technology that drives and supports cryptocurrencies. Generally, the crypto transaction backend mechanism is complicated, and the transactions are time-stamped and recorded into blocks. And, due to its complexity, hackers will have a tough time breaking in, keeping cryptocurrency relatively safe.
However since certain cryptocurrency businesses still do not offer the same level of security as banks, several risks and measures must be addressed and executed while investing in cryptocurrencies.
You will surely benefit from knowing how to keep your cryptocurrency safe and secure. Remember to protect your cryptocurrency investment as equally as critical as securing your other assets, especially when transacting on crypto trading platforms such as bit index ai
So, before making this kind of investment, it is important to ensure you understand how it works. As you use these six security tips listed below, you can guarantee that you are not taken advantage of. Let’s begin!
6 Ways to Protect Your Cryptocurrency Investments
If you have cryptocurrency investments, security should be your top priority, and you should be diligent in keeping them appropriate. It would be best to protect your cryptocurrencies like how you protect your cash at home or in the bank.
Because if you become a victim of digital theft due to security flaws, your bank will not be able to help you with that issue. And to prevent this type of situation, here are the top six ways you can consider to protect your cryptocurrency investments.
1. Set a Strong Password for Crypto Account
Setting up strong passwords is suggested whether you use a cold wallet or a mobile app for your cryptocurrency investment. Uppercase and lowercase characters, numerals, and so on should all be used in a strong password. You are free to combine any characters and letters you want.
After you’ve created your password, keep it somewhere secure. A password containing various characters, letters, and digits may be tough to remember. You can record it in a book or use a password management program.
Also, remember that using the same password on all your wallets increases the danger of being hacked by hackers once they gain access to just one of them.
2. Do Not Share Your Private Key
Private keys are one of the pieces of information needed to access a Bitcoin wallet. When you establish an account, they are produced with your wallet address. It’s a long string of numbers, letters, and other characters unique to each user.
The secret keys are personal and must not be shared with anybody. Remember that crafty and unscrupulous people may be found anywhere, including on the internet.
The very last thing you want is for them to get access to any of your accounts. As a result, never leave a digital trail of your account credentials.
3. Keep Your Cryptocurrency With Trusted Wallets
Among all the crypto wallets available, hardware wallets are considered one of the safest and most secure types of storage for your cryptocurrency investments.
And as the name implies, hardware wallets are like physical wallets. With this, you can be assured that the privacy of your account and the security of your crypto assets is in the best condition.
Among the best things about using hardware wallets is that they cannot be easily hacked since your private keys are stored in a physical wallet and not on the internet. But if your hardware wallet gets stolen or lost, don’t worry because you can safely transfer all the keys stored in your hardware wallet to another wallet using wallet seed.
4. Make Sure Your Devices Are Secured
Another beneficial tip to protect your cryptocurrency investments is to check the security and safety of all the devices you use in opening your account and making transactions. Devices are known as easy targets for hackers.
While using your device, you don’t know if hackers have entered your system and every important piece of information, including your crypto wallet, is already being hacked. That is why it would be best to check the security of your devices and take the necessary actions.Â
So to prevent yourself from experiencing this situation and keep your digital assets safe from thefts and hackers, consider installing various anti-malware or virus software. Make sure to run them daily to check your device is not infected.
5. Apply 2-Factor Authentication
Aside from strong passwords, you can also consider using 2FA or Two-Factor Authentication to add security to your account. Fortunately, most crypto wallets include 2FA to assure users’ safety and security while using their apps.
But how does 2FA work? To answer that, 2FA usually comes after inputting our password and username. The app will send an OTP or a one-time password to your registered phone number or email. Then after that, you will now have access to your account. With this method, hackers will have difficulty getting into your account.
Also Read: Top 10 Cryptocurrencies To Look Forward to in 2024
6. Refrain From Using Public Wi-Fi
Most people don’t know that using public Wi-Fi networks when opening certain personal accounts is more prone to getting your data leaked and, worse, hacking. And that also applies if you plan to access your crypto wallets or even make transactions with the help of public Wi-Fi. Remember that public Wi-Fi is a common way hackers like to access their victims’ personal information.
Additionally, as the name suggests, public means it’s open to everyone. You will not know whether someone connected is a cyber thief or hacker since you don’t know who is connected. Also, your IP address can be tracked by others, so any data you share online while being connected to public Wi-Fi can be stolen.
But if there are some cases where you need to connect, a reliable and trusted VPN connection will do. This way, the VPN will hide your IP address, and any information you share online will be secure.
