In the current scenario of prevalent high profile exchange hacks and assorted/garden variety attacks on individual entities using spyware, malware, ransomware etc. for stealing crypto assets, it is more important than ever to review your cryptocurrency security and make certain that there are powerful mechanisms to ensure just that – your funds stay safe and are transferred or converted under authorization, not otherwise. Read below guidelines to ensure just that, after all crypto is poised to increase its value greatly in the long run.
Not your keys, not your funds
The absolute basic of crypto security is to take responsibility for your crypto assets yourself, rather than outsourcing the security aspect to exchanges. Exchanges are frequently hacked for surprising reasons and many have never refunded their customers properly – if at all. So it is wise to keep your funds in private wallets, rather than on exchanges.
Keep separate devices for crypto assets or get a hardware wallet
It sounds expensive, paranoid and unnecessary. But it is hard to put a price on security, especially when there are thousands if not millions of dollars of assets at stake. Keeping a separate smartphone or PC for crypto wallets, which is reserved for only that, reduces the error rate of downloading viruses/malwares/spywares or getting your device compromised through other means.
A hardware wallet is extremely safe, since your private keys never leave your device nor you have to expose them directly every time for transactions, they are stored safely on the hardware wallet.
Make multiple wallets
Because it is not wise to keep all your eggs in one basket. They are easy to make and add a layer of complexity in your overall security strategy. Even if one is hacked, still your funds on other wallets are secure.
Never store private keys or pass phrases on computer files
They are better stored manually on handwritten papers, making it almost impossible to steal them. A notepad or word file containing sensitive information can be stolen or intercepted, the same isn’t however true for paper when properly stored.
Multi Signature Wallets
As the name indicates, multi-Sig wallets are secured using multiple private keys or authorization codes, rather than only one private key. A transaction can only be authorized, when all (or 2 out of 3 keys amongst other configurations) of the requisite keys are input.
Install proper protection on your devices
It’s again basic but installing updated anti virus software, anti malware suite and firewall to properly secure your devices is absolute essential to keeping your PC secure from attacks, which may steal crypto-assets or compromise sensitive information from it.
If you have a large amount of crypto assets, it is indeed wise to not brag or declare them over Internet. Anonymity goes a long way to ensure that your assets remain secrets and you don’t become a focused target of hackers looking to release wealthy owners of their funds. You are less likely to be attempted to be hacked, if there is no knowledge that you even have possession of large amount of crypto-assets.
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Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.
Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future.