Crypto Security: 5 tips to secure your cryptocurrency assets
Updated: Dec 10, 2022
With the rising popularity of crypto, more and more people are investing in these digital currencies. However, not everyone knows how to secure their investment and protect their assets from malicious attacks. Here are some tips that will help you how to keep your crypto assets safe:
What is Crypto Security?
Crypto security is the process of protecting your cryptocurrency assets from theft, loss, and damage. They are a set of techniques and practices that you can use to protect your cryptocurrency assets.
5 Tips to Secure Your Crypto Assets
Backup and recovery
When you're storing your cryptocurrency, it's always a good idea to make backups of the following:
Private keys - These are the long strings of numbers and letters that allow you access to your wallet. The private key should be kept safe away from public view and protected from prying eyes by storing it on a USB drive or other device that's not connected to the internet. If you lose this key, all funds in your account will be lost forever.
Recovery phrases - Similar to private keys, these are also long strings of numbers and letters but they're used differently. Recovery phrases allow you to recover your cryptocurrency if you lose access to your account or if it's compromised by hackers. You can write down the recovery phrase on paper or store it digitally on a USB drive that's not connected to the internet.
Use a hardware wallet
Hardware wallets are the easiest and most secure way to store your crypto assets. A hardware wallet is a physical device that encrypts and stores your private keys in an offline environment, making them extremely difficult (if not impossible) for hackers or other malicious actors to access. The best part about using a hardware wallet is that it's portable, meaning you can take it wherever you go. Check out our recommended hardware wallets here.
Avoid crypto scams
You don't need to be a crypto or a blockchain expert or even understand how the technology works in order to protect yourself from phishing scams, wallet scams, and more. Here are some tips you can use:
Phishing - This refers to when someone impersonates another individual in an attempt to steal their identity or financial information by sending them emails or text messages with links that look like official websites but aren't legitimate. Be wary of any emails or messages that ask for personal information such as passwords, PIN codes, or login details for online accounts (e.g., Gmail). If anyone claims they know you personally—or even if they claim otherwise—and requests sensitive information over email/text message then take caution before responding.
Wallet Scams - These occur when scammers try stealing funds stored on your personal wallet by tricking users into entering their private keys.
Practice good password management
It's a good idea to use long and strong passwords for your crypto wallets, especially if you're using an exchange. Ensure the password is at least 8 characters long and contains numbers, upper- and lowercase letters, and special characters (such as #). Don't use the same password for multiple accounts—it only takes one mistake for hackers to gain access to your funds. Similarly, don't rely on easy-to-guess passwords like your name or birthday date/time information as they are often hacked because many people reuse these.
If you feel like you need extra security measures when it comes to keeping track of all these passwords then we recommend using "2FA" which stands for two-factor authentication.
Never share private keys
The most crucial part of securing crypto is the private key. Private keys are what you use to access your crypto assets and perform transactions on the network.
If someone like an expert hacker gets their hands on these keys, they can use them to create a transaction that looks like yours but isn't actually yours (called double-spending). They can also sign messages with your private key, which would allow them to impersonate you and send money into an account you don't own or control.
Crypto security is always evolving and it’s important to stay up-to-date on the latest news. You can help protect your assets by following these tips and keeping your eyes open for scams. We also offer training on how to further secure your cryptocurrency investments and how to protect your assets using effective security devices and strategies. Reach out to us today at CryptoConsultz. We hope that this article has given you an insight into the world of crypto security—and that it will help you stay safe from hackers!