If you’re following the latest trends in the financial world, chances that you haven’t heard about cryptocurrencies like Bitcoin and Ethereum are minimal. Therefore, you know that they truly represent one of the best investments you can make these days. They have become more popular in 2020, for obvious reasons.
One of them is that they have received wider adoption. Naturally, as their value increases, so does the risk of them being stolen. It’s of the utmost importance to do whatever it takes to prevent this from happening. You don’t want to suffer massive financial damage, right? If you’re holding onto any digital currencies, it’s significant to start the process that will guard your assets.
These wallets can be hacked, but the risk is relatively low if you take proper precautions. Nevertheless, many owners make an error by thinking that it is sufficient to have one of these and they do not pay enough attention to possible additional coatings of defense. While most crypto wallets use a form of encryption to shield your assets, it’s still important to follow the best ways to keep your wallet safe.
Now, let’s take a look at a couple of tips for protecting your crypto wallets.
1. Create a solid password
The password you use needs to be robust and exclusive. So, using the same one in a couple of places is a no-no. In most cases, you will see that these apps will present you with some recommendations on how this should be done. For instance, it’s significant to use an upper case for at least one letter, add a figure, and sometimes, add some special symbols like “@”.
2. Use a different password for each wallet
If you have multiple cryptocurrency wallets, make sure each one has a different password. While this may not look like an important factor, we assure you it is. Just think about it, if it gets, let’s say, cracked, you will have no way to defend other accounts. They will also be cracked without any effort invested into the matter.
3. Use a secure browser extension
Several browser extensions can help protect your crypto wallets. Naturally, based on the browser you use, you will have a wide array of different options you can choose from. Therefore, we would recommend you conduct careful research and narrow down the list to a couple of options you think will meet all of your needs and preferences. One of the most popular is called LastPass.
4. Use two-factor authentication
Two-factor authentication adds an extra layer of safety to your accounts. They can be used to protect your digital assets, as well as another sort you might have. We are talking about a quite useful approach that will not only provide a new layer for protection but is also still impenetrable by a vast majority of hackers out there. Paying attention to these is an absolute must.
5. Keep your computer secure
It’s needless to say that your PC or laptop is secure and has updated security software. Malware can steal your cryptocurrency passwords and funds. For some reason, we can see that a vast majority of people are not sure whether they should update their system. In any case, this is something you should utilize if you have the chance.
6. Back up your wallets
The first thing you should do, just in case something happens to your device, is to perform a backup. You can back them up to a USB or a cloud storage service. Even though the chances you will lose all the crucial data are minimal, you should do it, just in case. Without having them, reaching out to your assets will be simply impossible.
7. Store your cryptocurrencies offline
Since you are interested in having the highest level of safety, you can store your cryptocurrencies offline after trading on https://bitql.org/. It means that the coins will be stored on hardware (like a USB drive) instead of an online server. Having all of your assets offline will help you save all the data you have. Just think about that, and you will see that it makes perfect sense.
8. Keep your hardware wallet up-to-date
Always keep the software for your hardware wallets updated to avoid any security risks. If you’re unsure how to do this, contact the seller or manufacturer for more information. You will certainly agree that conducting this process should be an absolute must in this case.
9. The recovery phase should be safe
In case you are interested in keeping the backup phases on paper, make sure that it is stored in a safe place, to avoid any unpleasant situations. During the recovery phase, there is a possibility that you can lose these assets for a wide array of different reasons. Before you conduct it, do everything you can to make the whole process secure enough.
10. Use a cold wallet for large amounts of money
If you have a lot of money in cryptocurrency, it’s a good idea to keep them on a cold wallet (i.e. offline hardware wallet) instead of an online hot wallet. As you can presume, these will be unreachable by pretty much anyone interested in taking your assets from you.
Why Is Important to Pay Attention to This Detail?
The safety of these wallets is significant because you don’t want to lose any of your hard-earned money. Truth be told, having one of these is pretty much the only way you can keep it safe. Cryptocurrency is a virtual currency and as such, there is no physical or tangible form that you can have in your possession. It is kept in a digital wallet and can only be accessed with a proper password.
It’s understandable to keep the information on devices you use every day, such as your phone or computer. But while this means it’s easy for you to access them, it also means they could be vulnerable if someone gains access to the device. This is why it’s significant to take precautions to protect the storage, such as using a strong password and two-factor authentication.
Also, remember that cryptocurrencies are not regulated by governments or banks, so you are responsible for their security. If something happens to your digital currencies, there is no one to help you recover your funds. This is why it’s important to store them in a secure wallet, rather than keeping the digital coins on an exchange where they are potentially vulnerable to hacking attacks.
It’s obvious what even though wallets are safe enough, it is essential to up the level whenever possible. Here, you can inform yourself about all the relevant pieces of information regarding this topic. We are sure you will find them useful.