Privacy has become a luxury in today’s world. While we send out data and personal information to get recommendations based on what we need, when it comes to digital assets such as Bitcoin it becomes a risk.
So you can hold on to your digital asset and protect it from malicious entities, here are 5 tips.
There’s More Than One Crypto Wallet
Knowing that there are different kinds of crypto investors, the powers that be developed several kinds of cryptocurrency wallets.
Day traders will prefer a hot wallet, which means the asset is kept in the crypto exchange. Those who intend to keep Bitcoin as a passive asset will want to store their assets offline, which is why hardware wallets or cold wallets were made.
The question is, what kind of trader or investor are you? Then the wallet you need becomes clear. Hardware wallets can be disconnected from computers and are safe from hacks. However, care still needs to be exercised since you can lose the device or accidentally do a reformat.
TFA is short for two factor authentication, which has become the gold standard in online and account security.
Two factor authentication works this way- you log in to a cryptocurrency exchange or website, or a reputable analytics platform such as bitcoin bonanza. Before you’re allowed entry you will need to confirm that you’re the one who’s logging in via another ‘authentication’.
A code can be sent to your smartphone, which you’ll enter on the website. It’s always a good idea to enable this feature when possible when completing actions such as making a trade or transferring cryptocurrency to another user.
Add Encryption to the Mix
Having your crypto wallet encrypted effectively adds another layer of cyber-protection.
The process of encryption is simple. You set a password so those who might have gained access to your wallet won’t be able to get inside it so easily. They will have to guess or figure out the encrypted password to steal your funds. When they’re unsuccessful they’ll usually leave or target someone else, and your digital assets will be safe.
Encryption is easy and it only takes a few seconds to do. It can serve as a deterrent, so why not practice it regularly?
Back Up Your Wallet Regularly
Since cryptocurrencies are digital files it makes sense that you should keep a second copy of the key on hand.
Most hardware wallets will have a form of backup in the event of device failure, crash or error. If your device gets lost or stolen, or if you accidentally wiped it then you won’t lose your assets entirely.
A backup can be done via paper wallet or putting the keys onto a different storage, such as another flash drive.
Be Aware of Scams and Moduses
You should never give away your account password or personal details to anyone, ever. Even if they say they’re the admin of the crypto exchange you joined, the staff will never attempt to get your user name and password.