While Cryptocurrency is the talk of the town, it is vital to know how to safeguard it from theft and hackers. You ideally would want your cryptocurrency vaulted safely so that it cannot be stolen or tampered with.
Tips to secure crypto holdings
In case you worry about how to safeguard your cryptocurrency, here is how you can go about it.
- Use a cold wallet: Unlike hot wallets, cold wallets do not connect to the internet and are therefore secure from any kind of cyber theft or hacking attempt. The case for cold wallets can be made by speaking against Hot wallets. In 2019, BITpoint – a Japanese exchange – discovered an unauthorised withdrawal of $32 million from its hot wallet in different cryptocurrencies targetting more than 50,000 users. BITpoint later also revealed that its cold wallet and cash holdings were not affected by the hacking incident.
- Use a secure internet connection: Using a secure internet connection becomes vital while trading cryptocurrency for reasons more than one. Not only would a faulty internet line give away crucial information, but it will also allow hackers to have access to the information you would not want them to have.
- Maintain multiple wallets: the easiest way to have a secure crypto holding is to hold them in several wallets, thereby manifesting the “never put all your eggs in one basket” adage. In case, any one of your wallets gets broken into, you do not end up losing all your holdings, which is far worse.
- Keep changing passwords regularly: You must have heard this a million times before but this is, by far, the most secure way of securing online information. Changing passwords might seem like a tedious task, but it is a healthy practice to follow to keep hackers away
- Don’t get phished: Do not click random links or do not access malicious mails. This just opens you up to a world of problems. When you are making crypto transactions, make an active note of where you are clicking and avoid suspicious and unknown links. Hackers use several means to attack crypto wallets and ledgers and having you click links makes it easier for hackers to access your wallets and do as they please with your hard-earned bitcoins.
- Use a ledger: In an era where cryptocurrencies are booming, its security has become all the more vital albeit difficult. When you look to secure your crypto holdings, a ledger goes a long way. Ledgers make super-secure hardware wallets for safe key storage. They even offer the required services on an all-in-one app, saving you the hassle of having to jump several apps to get a basic understanding. Ledgers make it possible for you to buy, sell and exchange cryptos in one place.
When online, your security is your responsibility. So, be wise and aware about securing your crypto holdings. The only safeguard you can have against ultra-intelligent hackers is your own vigilance eventually. An aware and vigilant crypto holder is a safe crypto holder. So do remember to do your research beforehand to save yourself from several hacking mishaps!