Cryptocurrency wallet

How to keep your cryptocurrencies safe?

Cryptocurrencies can sometimes gain an unfair and inaccurate reputation for being insecure. It is not the case at all. However, as with anything, valuable precautions must be taken to ensure their safety.

First of all, the most important thing to keep in mind when using cryptocurrencies and blockchain is to write down anything that you think might be important. Passphrases and private keys cannot be recovered once lost, it is simply impossible. In this regard, it is better to be safe than sorry.

Naturally, there are certain risks associated with having sensitive information written anywhere. For example, it can be destroyed or accessed by another party. However, taking proper precautions, such as using a lockbox and making more than one copy, can help negate these issues.

When creating an account on the blockchain, please take your time and take all necessary steps as a precaution. It is worth doing this to avoid problems at a later stage.

Do not write information on an electronic device, such as a smartphone. Such devices can be hacked. Traditional paper and pencil are much more recommended.

Do not keep your crypto-currencies on exchanges

Some people are skeptical about the security of cryptocurrencies due to the fact that the mainstream media will report on hacks that occur in cryptocurrency exchanges. Nevertheless, it is a problem that you can easily avoid.

Check out our top of the best cryptocurrency wallets to keep your crypto safe!

Cryptocurrencies themselves are distributed and decentralized, as well as highly encrypted. This makes them extremely safe. However, many exchanges are CEX. This means that the cryptograms sent to them are kept in a centralized wallet.

In other words, if a hacker gains access to this wallet, they will have access to all the funds stored in that particular wallet, making it an attractive target. In general, exchanges are safe, but keeping funds, especially those not used to trading on a regular basis, off-exchange and in wallets is strongly advised.

Always do your research to make sure a wallet is compatible with the token you are sending it. If you send an incompatible token, these funds will be lost.

Undeniably the future of exchanges is the DEX. A decentralized exchange is a stock market that does not rely on holding customer funds in a centralized wallet. Instead, transactions happen directly between users through an automated process.

Passwords

Some aspects of blockchain and cryptocurrency trading require passwords, such as connecting to an exchange. In order to keep encrypted assets secure, there are a few best practices that are very important to follow.

Always use different passwords for different accounts. That way, if an account is compromised in some way, it doesn't put all of your assets at risk.

Do not use personal information as a password. Use a combination of upper and lower case letters, numbers and symbols.

Use long passwords, as they are harder to crack. A minimum of 15 characters is recommended.

Using a Password Manager tool makes these steps possible and easy to perform and is highly recommended, even at a cost. It's just not worth the risk of having your crypto stolen. Such password practices are also recommended outside of the cryptocurrency space.

Double check any address you also send cryptocurrency to. This may seem difficult, since public addresses are completely random combinations of numbers and letters. However, it is worth doing. Transactions that occur on the blockchain cannot be undone and there is no mediating party that can help with funds that have been wrongfully transferred. Always take your time when sending funds.

Enable two-factor authentication

Two-factor authentication is a system in which two different forms of identification are required to confirm a user's identity. The first is knowledge-based, being an email and password, the second is rooted in the physical, like having access to a device associated with that user, such as their smartphone.

IThere are various apps that offer this extra layer of security, including one created by Google. The system works by asking the user to scan a QR code. This gives the device its distinct identity and allows it to generate a different six-digit number every few seconds. These six digits will now be required to log in to the account that has 2FA installed.

If 2FA is associated with a device that is subsequently lost, it can cause a serious account login problem. It is therefore strongly advised to configure 2FA on more than one mobile device. This can be done by downloading the Authenticator app on more than one device and scanning the QR code with both devices at the same time. A device can then be stored in a secure location, ensuring the user has access to their account no matter what.

This added layer of security means that for a hacker to gain access to an account, they must have access to the user's email and password, as well as their device, and in particular the 2FA application. This makes things much more difficult, if not impossible.

Phishing sites

A phishing site is a website designed to look like a legitimate site, a site that a user might be looking for. However, the phishing site is only there to steal private information or convince a user to transfer money to an illegitimate account. Such scams are relatively common in cryptocurrency and it is very important to beware of them.

When researching a website, always make sure the spelling is correct and be careful when following a link that is clearly an ad. Also, always search for the green padlock by the URL. Once you are sure you are on a legitimate site, add it to your bookmarks.