Since Bitcoin’s inception in 2009, crypto has grown at a fast pace, becoming popular among investors worldwide. Nowadays, there are more than 20,000 cryptos out there, some of them being top favorites for investors, like Ethereum and Binance Coin. While appealing to many, the market is still new, hardly regulated, and very volatile, making it a perfect target for cybercriminals and scammers. Thus, before diving into crypto, it’s imperative to learn how to keep your funds safe. That’s what we’ll discuss in this blog, so keep reading!
Use a reputable exchange.
If you want to buy and sell stocks, you must choose an exchange – the same rule applies to crypto. Such a platform allows you to analyze the BTC price chart, so you can always stay up-to-date with the changes in the market. Different exchanges are available, and many of them have a considerable trading volume. However, choosing a reputable one is imperative, as not all of them are considered safe. Here are some factors to keep in mind when looking for a platform:
- Security;
- Numbers of traded cryptos;
- Fees;
- Liquidity;
- Insurance policy;
- Regulation compliance;
- Reward programs.
Opt for a hardware wallet
Innovative technologies like blockchain have excellent pros, but taking control of your cash comes with responsibility, so you need to implement solid security measures. The saying’ Not your keys, not your coins’ exists for a reason – if you can’t access your private keys, it means you don’t really have ownership of your coins, as the exchange is the one to choose when you can withdraw them. Plus, despite their security, exchanges can still get hacked, compromising your funds. So what’s the solution? Purchasing a hardware wallet enables you to store your crypto offline, giving you full ownership over your digital assets. This boosts security and is particularly useful for long-term holdings. But make sure to keep your seed phrase in a safe place – if someone accesses it, they will also access your funds, and that’s the last thing you want. So, consider writing the s off the Internet and avoid saving them on your mobile.
Make sure your Internet connection is secure.
This may seem evident, but using a safe Internet connection is not just about avoiding public Wi-Fi and staying away from questionable websites. Chances are, most of your trading will happen at your home, meaning you should have a basic security infrastructure in place. Firstly, you want to your Internet’s security by checking your firewalls for vulnerabilities and ensuring your antivirus software is updated. It’s also vital to use a solid for your wireless router and enable encryption. You can also invest in VPN for extra safety, as it will encrypt your data and hide your online activities from potential attackers, even if you can use pseudonyms when trading crypto, that doesn’t ensure total anonymity. Several exchanges require AML and KYC procedures for legal and security reasons, which means your data can be easily accessed if an app or an exchange is hacked. However, VPN minimizes this risk considerably.
Use a different for each .
It’s common for Internet s to have a single for different websites, but that’s a no-go, as it is risky and can compromise your . To protect your crypto, you must ensure your s are unique and complex. Also, it’s vital to change them regularly. “But how am I supposed to so many s?” you may wonder. Well, the good news is you don’t have to! A manager can do the job for you, putting your mind at ease and improving your crypto experience by making it easier and safer. Briefly, a manager is an app that stores your s so you no longer have to them. Once you to it with a master , the app generates all the other s for your online s. One great feature of managers is that many of them can even enter the s into sites automatically, which means you can without having to type them in! Isn’t that great?
Consider installing 2FA
2FA, the acronym for Two Factor authentication, adds an additional layer of security for your crypto. That’s because it verifies your identity through a text message when logging in to the exchange. Installing 2FA will help monitor your activity and signal any suspicious activity. Most crypto exchanges already have this feature, or multi-factor authentication, which is great. However, it’s worth mentioning that 2FA is not perfect and has loopholes, like a SIM swap where bad actors can move the data from one mobile to another, from photos to apps and s.
Be wary of scams
Crypto attracts many scammers due to its decentralized feature. These bad actors use several tactics to steal money from victims, including rug-pulls, Ponzi Schemes, and creating fake crypto giveaways. Phishing attacks are also common, so it’s imperative to be aware of all these threats. You can take different security measures, such as not clicking on suspicious links and double-checking apps and websites. Setting up a secure digital environment should be among your top priorities when investing in crypto, so make sure to watch out for threats and only deal with reputable crypto entities.
Do your research
When ing the crypto space, it’s vital to take the time to learn about what this industry involves. Fortunately, a lot of information is available, so make sure to do your homework and learn how to make the right decisions when purchasing, exchanging, and storing crypto safely. Many online resources teach about the risks of crypto, why security is paramount, and give tips on staying protected. So, get educated on the topic as best as you can – that way, you’ll be able to protect your funds from bad actors.
The bottom line
Protecting your crypto may seem daunting, but the effort will pay off in the long run. Prevention is always better than mitigation, especially when it comes to digital money. By following the steps mentioned above, you can considerably reduce the risk of a breach.