Today there are thousands of cryptocurrencies you can invest in, as more and more people want to invest in them. Many consider them to be a great opportunity for profit, many are dreaming of being part of the next success story and becoming rich with an insignificant investment. And this is possible, even though you should always be very careful about investing in cryptocurrencies and never invest more than you can afford to lose since they can be highly volatile.
And, more to the point of being careful, if you have started buying coins, you should always be sure to keep your investment protected. Keep in mind that even though the major cryptocurrencies are very secure – using highly advanced technology to ensure their protection, such as blockchain technology –, nothing that’s online is 100% safe. However, thankfully, there are measures you can take to keep your cryptocurrencies as safe as possible.
1. Trade on Secure Exchanges
As the popularity of cryptocurrencies grows, there are increasingly more tools you can use for handling them. To buy, sell or trade cryptocurrencies a trader may use a crypto website, called an exchange. Right now, there are hundreds of cryptocurrency exchanges you can choose from, to exchange Bitcoins, Ethereum, RVN, and other coins. This can make it hard for beginners to select one.
Since people are entrusting their investment to these virtual marketplaces for crypto, they should be able to provide the best possible protection against potential threats. Everyone who registers has to provide their personal information, and the platform must be able to protect it.
So, once you find a reliable crypto exchange with a good reputation, you should learn how they protect their users. Their security standards should be state of the art, and they should have a team of trusted cybersecurity specialists able to provide an immediate response to threats.
Transparency is another trait you should be looking for in any crypto website. You should be able to understand their terms and conditions, their fees, and how your funds and personal info are protected. Some trusted exchanges also offer cold-storage options for your cryptocurrencies.
2. Use Wallets Cleverly
Cryptocurrency wallets are where traders store their digital assets. They keep their private keys, which give them access to their currencies, safe. So, wallets are used to send, retrieve and spend cryptocurrencies. There are several types of crypto wallets, and the most important distinction between them is whether they are connected to the internet or not.
Being connected to the internet, hot wallets, such as web-based, desktop, or mobile wallets, are, obviously, less secure than cold wallets, such as hardware wallets – or devices that can’t be hacked and keep your private keys safe. Hot wallets work much faster and are by far more convenient than cold wallets.
However, if what you are aiming for is the best security, you should think about investing in a cold wallet. You could also use a combination of both, to have the easy access ensured by a hot wallet, and the security ensured by a cold wallet. Alternatively (or additionally), you could also use several hot wallets for different purposes.
3. Use Two-Factor or Multi-Factor Authentication
When you are creating a password you have to choose something complicated since weak passwords are far more likely to be hacked than stronger ones. An incredible number of people use the same password across devices and platforms (e-mails, social media, apps) But when it comes to your cryptocurrencies, you must be very careful, and make sure that you use a separate strong password for your exchange, your wallets, etc.
Nevertheless, it’s very clear by now that passwords alone aren’t the best protection against cyber-attacks. This is why, when it comes to cryptocurrency, you should always choose software that allows two-factor or multi-factor authentication.
4. Protect Your Devices and Use Secure Internet
It’s known that your computers, smartphones, or other portable devices are vulnerable to cyber-attacks. This is why you should make sure that you only handle cryptocurrencies on devices that are protected by the best possible software. Keeping your operating system, as well as your antivirus or antimalware programs, up to date, is also a great way to ensure that your digital assets are secure.
Your Wi-Fi network is also a good point of entry for hackers, so you should only use secure internet. Avoid using public Wi-Fi networks, and for additional protection, use a VPN even when you are handling your cryptocurrency on your home network.
Final Words
Everyone wants to keep their assets secure. Investing in cryptocurrencies is risky because they are volatile but also because (however rarely), they can be stolen. These four safety measures should help you keep your funds and personal information protected against different threats.
