You know the biggest fear of cryptocurrency users are?
Losing their hard-earned cryptocurrencies. Be it Bitcoin or any other altcoins.
What could you do?
Well, read on this guide to learn the essential guide for securing your cryptocurrencies from hackers.
Before that, we all are well aware that 2017 and the first quarter of 2018 have been dominated by two major buzzwords – cryptocurrency and blockchain.
Both these terms work hand-in-hand to promote what has essentially grown to become one of the most significant financial developments in recent memory.
The fact that merely attaching the word “Blockchain” can considerably improve the stock prices of products that have nothing to do with this terminology speaks volumes when it comes to the popularity of this phrase in today’s day-and-age.
More and more people want to get into the cryptocurrency scenario to earn a quick profit, even though things aren’t as simple as they might seem at first glance.
However, the fact of the matter is that cryptocurrency is still a viable avenue of investment that one should take into account if they genuinely want to explore and experiment in the financial domain.
Keep in mind that the information around blockchain and cryptocurrency is still pretty hazy, and one needs to be wary of the time and manner of their investment in this domain if they don’t want to lose out on a substantial amount of money.
While the decentralised nature of cryptocurrency does mean that your financial dealings will remain relatively secure, there are still some measures you should adopt from your side to guarantee an extra level of security.
4 essential security tips for Cryptocurrency hodler’s:
Manage your passwords efficiently:
It doesn’t take an expert to tell you that repeating the same password across multiple platforms is not a wise course of action to take. We also understand that, while forming complex and unique passwords for each online domain might sound like a neat idea, the reality is that most people won’t be able to remember all these complicated phrases. So, to make sure that you don’t end up forgetting your password to your crypto wallet and lose out on substantial sums of money, it’s highly recommended that you use a password manager like Dashlane or LastPass to make sure that you don’t forget any of your passwords.
Using two-factor authentication to secure your password is also a great way to ensure security – utilizing a personal question, an OTP on your phone, or anything else as a confirmation of sorts with your password can prove to be incredibly helpful.
Secure your computer:
The threat of a virus infecting your laptop is all too real and can prove to be incredibly harmful – especially if you’re dealing in the field of crypto. To prevent any debilitating attacks on your computer, make sure that you secure an anti-virus system that enables total protection for your PC.
Using an adblocker to avoid scam offers from even appearing in the first place is another level of security that you should enable.
In fact, uBlock (one of the most popular and useful adblockers around) is actively taking steps to prevent third-party cryptocurrency mining scripts from running on an unsuspecting person’s browser, which is a great course of action to take.
Maintain anonymity:
While utilising an anti-virus or an adblocker to prevent scams or attacks might work to an extent, a hacker who’s actively targeting your system won’t be deterred by such means. Therefore, in such a case, it’s imperative that you disguise your IP to prevent these attacks from inflicting any lasting damage. There are two ways to enable this anonymity – either a VPN or Tor.
In the case of a VPN, while your IP address is hidden, it’ll still be stored on the VPN provider’s domain. However, in the case of Tor, the browser re-routes your signal through many nodes that make it impossible for a hacker to track your IP.
Use a hardware wallet:
Even after following the points mentioned above, there’s still a chance that your foray into the field of crypto can be hampered by individuals who want to turn a quick profit at the expense of others.
The most important piece of your crypto wallet security is the private key. If you are storing your coins on an exchange, then it’s a big mistake. You own Bitcoin or other coins only when it’s in your wallet where you control the private key. CoinSutra has written an interesting article on different types of Crypto wallets which will give you a head start.
The best way to keep your Bitcoin or other coin is by using a hardware wallet.
A Hardware wallet ensures that your private key is never exposed to the computer or your mobile and thus ensures maximum security. The fact that there has been no reported theft or loss of any form of cryptocurrency from a hardware wallet speaks volumes when it comes to the immense level of security that is enabled by this service.
Here are a couple of options for you in hardware wallet category:
- Ledger Nano S (Highly recommended)
- Trezor (New T model is what you should opt for)
There are few new companies also out there, but these two crypto hardware wallets are the best. One reason is, you can store Bitcoin, Ethereum, All ERC20 tokens and many more coins.
Summing it up:
Your password is the first line of defense which works for keeping your login secure on an exchange. Using 2 factor authentication is a must and something all popular exchanges like Binance and KuCoin offers these days.
However, the most important thing is to secure your wallet private key and that should be done using a hardware wallet. A mobile wallet or desktop wallet is easy to hack and should be avoided.
If you are seriously interested in dealing with cryptocurrency, then you should secure your transactions to help prevent any tampering with your crypto wallet.
After all, the boom in cryptocurrency pretty much speaks for itself when it comes to the profitable nature of this particular aspect of the financial domain.
Do let me know how you liked our security guide for cryptocurrency users. If you want us to cover any of these in details, feel free to ask. Cryptocurrency is a growing industry and the more informed you are, your chance of growth will be faster.
- Also check out: Best Cryptocurrency exchanges to trade cryptocurrencies