The Beginner’s Guide to Cryptocurrency Security
Cryptocurrency, with all its benefits and shortcomings, is sure to be a major part of the world economy for many years to come. But, as with any type of investment or financial tool, some knowledge can go a long way in helping you make the right decisions when it comes to security. The following guide will outline essential security tips and how you can keep your cryptocurrencies safe from both hackers and thieves this year and beyond!
The Importance of Crypto Security Measures
The news has been rife with stories of stolen cryptocurrencies over the last few years, some more famous than others. We’ve all heard about the loss of nearly $500 million worth of NEM from Coincheck, or about Bitfinex being hacked for $3.6 billion worth of Bitcoin. But there is a reason why cryptocurrency security is such an important topic right now: crimes like these are on the rise.
Exchanges are a primary target of cybercriminals due to the volume of coins they hold, which makes them a tempting target. One study discovered that it’s not uncommon to see over 90% of all cryptocurrency thefts of over $100 million taking place on exchanges. And there have even been smaller incidents where coins have been stolen from as little as a few hundred dollars at a time!
The reason why these exchanges are so vulnerable is that they store private keys, which allow them to access your coins on the blockchain. This makes them a prime target for hackers and other cybercriminals, who are eager to steal crypto for themselves.
So how can you protect yourself? The first thing to keep in mind when it comes to security is that there’s no such thing as 100% guaranteed protection. It’s impossible, even with the best software, to be sure that no one can get into your account and steal coins.
However, there are steps you can take to significantly lower your chances of theft, as well as make it much more difficult for cybercriminals. With these tips below, you’ll be on the right track to making sure that your cryptocurrency account stays yours.
Cryptocurrency Security Tips – What You Should Know
There are quite a few things you can do to help keep your coins safe. Below, we’ve listed your options.
1. Choose a Reputable Exchange
The first thing is to make sure that they’re stored in a reputable blockchain exchange, like Coinbase or Binance. These exchanges offer the most security and have the most robust customer services. And as we all know, any high-volume exchange holds plenty of high-worth cryptocurrencies. Not to mention, most exchanges also offer a guarantee of their coins, meaning they’ll reimburse you in case of a breach. So your chances of getting your coins stolen by an exchange are more or less null!
2. Set Strong Security Settings
Your cryptocurrencies are only as secure as the wallet you choose to store them in. Before choosing any wallet, make sure that it offers a high level of security. This includes encryption technology and multi-factor authentication, which is on by default for most reputable wallets. Keep in mind that certain wallets are much more secure than others. For example, mobile wallets offer some of the best security available. But it’s important to remember that just because a wallet is high in security doesn’t mean that it’s invulnerable.
3. Use A Hardware Wallet
One of the most effective ways to store your cryptocurrency is by using a hardware wallet. These are rather bulky, but they’re generally a safe bet, as they’re immune to most hacks. You can buy or build your own on the internet, or, if you don’t want to spend the time on such a project, you can also purchase one from Amazon!
4. Securely Store Your Private Keys
When storing your private keys offline, then your funds are protected. If a private key is accessed, then all of the crypto on that particular wallet will be locked down. Keys are usually encrypted, so even if someone gets ahold of an unencrypted private key, they won’t be able to access your funds.
5. Create Strong Passwords for Exchange
When logging into your exchange, make sure to use a secure password that’s difficult to guess or crack. If you use a weak password, then it could end up costing you big time. And make sure that your password is different on every wallet, and especially on every exchange where you store your coins!
6. Encrypt Your Device
When storing any device with access to cryptocurrency, it’s a good idea to encrypt it. This not only protects the device itself from being stolen or hacked but also ensures that if it gets stolen by someone else, they won’t be able to access its contents without the right decryption keys.
As the world gains more and more knowledge of the benefits of blockchain technology, so too are the risks. Both new users and veteran investors have been learning about cryptocurrencies in recent years, so some hacks have elicited surprise, while others have been anticipated. But it’s important to remember that these hacks are happening all over the world, and they’re just getting worse with each passing day.
The best way to stay safe is by keeping regular security checks on cryptocurrency exchanges and wallets.