How To Maintain Security in The Crypto World
The crypto world continues to grow as we begin to shift toward digitalization. In fact, it already has 300 million users globally as of 2021. Despite that, a lot of people are still hesitant to invest in cryptocurrencies due to security risks. And also because of knowing that having full control over their money means taking full accountability when something unfortunate happens.
You must understand that centralized cryptocurrency services cannot provide the same level of security as banks. If your money is lost or stolen, it can be difficult getting them back. Therefore, maintaining security in the crypto world is essential.
While you can use the same procedures to protect your bank accounts, there are a few more precautions you should take to keep your crypto safe. We’ve put together a list to help.
1. Choose a secure platform
Before you start your crypto journey, you must do your research first. Learn about exchanges and which platform is built with a more secure blockchain.
In general, all cryptocurrency platforms use blockchains, but the level of security may vary depending on their consensus mechanism. Therefore, you must carefully analyze a platform’s security features to determine how they can protect your data and investments.
You’ll know that you can trust a platform if it offers SSL/TLS encryption, multi-factor authentication, and air-gapped devices. These three are primary security measures that protect you as you begin to explore the crypto world.
2. Consider using the hot-cold wallet hybrid approach.
There are two different types of cryptocurrency wallets: Hot and Cold.
Wallets that you can access using the internet are considered “hot.” They are accessible from anywhere at any time. However, this type of wallet being accessed online poses a higher risk of data breaches. When hackers get into your provider’s data, you might lose all your investments.
On the other hand, cold wallets are air-gapped devices or hardware wallets that you can use offline. It is considered more secure since no one can hack into it remotely. All you need to do is keep it somewhere safe because if you lose it, you also lose your access and all your money in it.
Using both wallets will help you get one step ahead of the hackers. Store most of your cryptocurrency in the cold wallet and keep a small amount in your online wallet. If one wallet gets compromised, you still have one that contains a portion of your crypto investments.
3. Use Strong Passwords and Update Them Regularly
Another way to maintain security is using a strong and complex password. You can create random passwords using different sets of letters, numbers, and special characters. Just make sure not to include any personal information or recycle a password you already use on other platforms. Also, keep it safe and update it from time to time.
4. Enroll in Multi-Factor Authentication
Multi-factor authentication adds an extra layer of security to your account. By enrolling in it, you’ll need the verification code sent to the number or email address you input whenever you try to log in. This makes it difficult for cyberhackers to access your cryptocurrency.
5. Keep Your Private Key and Seed Phrase Safe
Your crypto wallet, whether digital or hardware, holds public and private keys. They are complex strings of letters and numbers that can be encrypted or decrypted during crypto transactions. You can think of private keys as your PIN or password, while the public key is your username. Keeping both to yourself will keep your cryptocurrency secure.
On the other hand, a seed phrase is a set of random words that work as your only backup when you forget or lose your private key. To keep them secure, you should write them down and store them somewhere safe. Anticipate that while the crypto market is evolving, attackers are also upgrading their ways to get your data—through the digital world.
6. Secure Your Wi-Fi Network
One thing to avoid when accessing your crypto account is connecting to a public Wi-Fi. Cyber actors can intercept the messages sent over public Wi-Fi and obtain your login. They can also install keyloggers and trackers on your network without your knowledge. To maintain security using public Wi-Fi, use a VPN. It creates an encrypted tunnel to hide your IP address, location, and your online activity from anyone.
7. Be Vigilant: Avoid Social Engineering Scams
The number of people falling for phishing scams would surprise you. It is a targeted attack in which the attacker pretends to be a reputable company to steal your data. They frequently send you emails asking for your login information on a website that appears to be legitimate. Therefore, always check if the link has HTTPS and points to the correct website. Instead of clicking on the provided links, you can store the URL to your favorites or type it directly into your browser to check. Also, keep in mind that no one from crypto exchange companies will ask for your secret recovery phrase on your social media platforms.
8. Keep Your Device And Programs Up To Date
Finally, keep your device and programs updated. Software companies release newer versions to offer new features and enhance the program’s functionality. Therefore, staying up to date is as important as having antivirus software. To avoid any hassle, you can choose to make update installations automatic.
Security is crucial, especially when we talk about real money. While the crypto world strives to make a secure and private platform for users, taking primary security measures is still needed. By following our tips above, you’ll be one step ahead from hackers.