Blockchain technology and the related cryptography revolution has gained a lot of attention. This attention has charmed people looking to rob unsuspecting cryptocurrency holders. Although, it may seem like blockchain technology is immune to fraud or deception. In reality, according to MIT reports, hackers have stolen nearly $2 billion worth of cryptocurrency since the beginning of 2017, that too mostly from exchanges.
The security of our coins is vital. Crypto investors are becoming a huge target. Hackers target Crypto because it is decentralized, private, and censorship-resistant. No bank or insurance company is going to help you out if your account gets hacked. There has been an increase in phishing attacks in volume and complexity at an astonishing rate. We read about online scams and think they would not happen to us, but it is better to be safe than sorry. Therefore, make sure you follow these tips and take a step forward towards protecting your investments:
1. Let’s start from the basics.
The easiest thing you can do is get an excellent antivirus. We all know this already but often forget to install or upgrade our antivirus software. Be careful with the antivirus you use, as it should not be resource intensive.
2. VPN:
For ensuring network safety, don’t forget to use a VPN in public places. Keep a regular check on your home router, change the password every month or so and make a strong password each time unrelated to your details, like your date of birth, house number, your dog’s name, etc.
3. Web browser safety:
Never save passwords in your browser, it is equivalent to encouraging the robbers to steal your valuable assets. Bookmark important sites, especially Crypto exchange sites so you don’t get tricked by fake websites that look similar to the original one. Keep a check on the browser extensions you install because malicious browser extensions could access your data
4. Email:
Create a separate email account solely for Crypto transactions and set a unique password for each crypto wallet you have. I would not recommend making your crypto account from Gmail because Google often shares your data with advertising companies. Instead, use an end-to-end encrypted email like Protonmail or Hushmail. Even if they were hacked, the hackers still wouldn’t be able to read your emails. If you are using a Gmail account, go through Google’s security checks often and look at connected apps, devices, and history. Secure all your emails with 2-factor authentication. Do not click on any phishing email. If an email seems suspicious, then it most likely is. Be skeptical of every file and message you receive, fight your curiosity.
5. Cold and Hot wallets:
Just the way we keep our money or cards in a physical wallet, cryptocurrencies are also stored and retrieved in a wallet—a digital wallet. A cryptocurrency wallet stores the public and private keys needed for cryptocurrencies and produces digital signatures authorizing each transaction. These digital wallets can be a device, a program on an application or website, or a service administered by crypto exchanges.
Let’s understand why we need a cryptocurrency wallet to trade. While many exchanges provide or recommend crypto wallets for your use, to buy or trade Bitcoin or other cryptocurrencies you are required to have a wallet address so that the digital currency can be transferred to you. Most of these digital wallets are password-protected, and many offer other security features such as encryption and two-factor authentication. There are a plethora of varieties available with their own set of advantages and disadvantages.
Online wallets are also known as “hot” wallets.
Examples include Guarda, Coinbase, Metamask, Blockchain.info. These wallets become more exposed to thefts and scams because these wallets generate the private keys to your coins on internet-based devices. Although a hot wallet can be very handy in the way you can access and make transactions with your assets promptly, they also lack safety.
Cold wallets are hardware wallets;
Offline kept paper wallets, USB, and offline similar data storage devices and therefore stand a far lesser risk of being compromised. You can still receive funds at any time, but no one can transfer them out. MyEtherWallet is a common means to make a paper wallet for Ethereum and all ERC-20 tokens. Take a hybrid approach to digital wallet security. Use cold wallets to store the majority of your cryptocurrency investments while hot wallets for a meagre amount of your currency.
6. Passwords and usernames:
Always choose a random username, irrelative to your real name. For example, if your name is Mark Stins, don’t select a username like @markstins020 or @thisismark. Instead, go for a completely anonymous username like @golden_unicorn. Do not store your passwords on any mobile application like Google Keep or any other notes app. If you have trouble remembering your passwords, try Password Managers like LastPass, 1Password, etc. Again, don’t forget to secure your password managers with 2-factor authentication. Use a separate email account to sign up for a password manager and keep changing the master password periodically. I feel it’s easier to note your passwords on a piece of paper and keep it in a safe and secure place.
7. Use time-locked vaults:
There are numerous reasons why someone would want to time lock their Cryptocurrency. Time-locked wallets are more secure than normal cryptocurrency wallets because of the fact that no one, not even hackers, can remove the coins before the set date or block height. This means that those who trust the long-term prospects of Crypto can lock their coins without having to worry about them being stolen or hacked. There are different pros and cons of choosing a time-locked vault, so weigh your options and decide what suits you best.
8. Lastly, audit your accounts.
Look for anything fishy or abnormal on all platforms- exchanges, password managers, email accounts, etc. Go through your previous logins and devices, which APIs have accessed your data and to what extent, and recent activities or changes. Keep doing this regularly. Hackers often take some time to carry out an attack against you and you can prevent them from doing so if you notice something and change every setting in the meantime.
As the world of cryptocurrency evolves, so does the methods of thieves and hackers advance. No systems are perfect. Some of us might learn that the hard way but knowing the unpredictable nature of technology can give us the insight to look out for errors and be alert.
I hope this guide has helped you gain some satisfaction and peace of mind regarding the safety of your investments. Religiously follow these tips, do not wait for it to be too late. Also, don’t forget to share these tips with your friends and mention any tips we missed in the comments below.
