Several billion dollars in cryptocurrencies were stolen over the past few years. Hence, in the existing time of highly skilled hacks on crypto exchanges and wallet providers, it is more essential than ever to take different security safeguards when dealing with cryptocurrencies. Here are some security guidelines to sufficiently protect your cryptocurrencies from attackers. Let’s take a look at it in more detail.
Not your keys, not your coins
The absolute base of the safe possession of cryptocurrencies is to be accountable for storing the coins/tokens yourself and not to leave this to exchange. Again and again, exchanges become targets of hacker attacks for different reasons and the clients’ coins simply vanish. It has often occurred that a stock exchange went down as a result of such a hack and clients were not reimbursed for their losses. So always keep the cryptocurrencies in a private wallet and not on an exchange. There you can simply leave the coins you need for trading.
Separate devices or hardware wallets for handling cryptocurrencies
This may now look costly, and unneeded, but the past has demonstrated that it doesn’t have to be. Particularly when the crypto assets to be held are worth thousands or maybe even millions of dollars. Using an additional smartphone or machine to set up and utilize crypto wallets significantly lowers the risk of the coins being stolen by viruses, malware, spyware, or any other third-party-related complications. If you want it to be more straightforward and possibly more affordable, you can use a hardware wallet. This kind of wallet is very safe as the private keys never leave the device but stay securely on the wallet.
Create multiple wallets
Since it is notoriously foolish to put all your eggs in one basket, we suggest using multiple wallets. They are straightforward to create, yet symbolize an extra layer in the overall security approach. Even if one of the wallets is compromised, the coins in the other wallets are still secure.
Never store private keys on the computer
Private keys or passphrases are best written down by hand on a piece of paper and kept on it, as this makes it almost inconceivable for hackers to get hold of them. Of course, there is still a slight risk here. The hackers could possibly hack the webcam at a suitable moment and thus spy on the private keys. Yet, this is much less likely than an attack that only operates on the computer. To cover the sheet of paper from a tipped water glass or other contamination, it is better if you laminate it.
Multi-signature wallets
As the name implies, this kind of wallet utilizes multiple signatures (private keys or authorization codes) instead of a private key. A transaction can then only be executed if all (or 2 out of 3) of the needed keys are entered.
Install security software on the devices
The installation of existing anti-virus programs, anti-malware software, and firewalls to protect the devices is also one of the definitely crucial basics to save your own computer, private data, and cryptocurrencies from cyber attacks.
Never talk about money
For many, this may be an ancient principle that has long since lost its truth, but it is exactly this that can defend against attacks on one’s wealth. After all, if no one knows that you have a large number of cryptocurrencies, then you are a challenging target for attackers who always look for wealthy potential victims.