The first question is, ‘Do you have Crypto Insurance?’
Unlike stocks and bonds, and finances stored up in banks and other government-recognized organizations, cryptocurrency is not insured.
Hence, even if some wallets, exchanges, and the like are insured, it doesn’t guarantee that you possess a safe crypto account.
Another question is, ‘Without crypto insurance, is your digital currency safe?’ A quick answer is no.
The rise in prices of crypto has called the interest of hackers. If you’re not careful, you could lose your entire investment in minutes. As such; we’ve identified the most important security tips to ensure the safety of your cryptocurrency
Understand the Different Methods of Crypto Security
First, get familiar with crypto security methods. This includes secret keys, seed phrases, and malware are some of the methods by which a user can safeguard his account or wallet.
Since digital currencies are kept in cryptocurrency wallets. It is important to learn ways a wallet can be kept from hackers or cryptocurrency scams.
Use the two types of Wallet for Crypto Insurance
Two types of cryptocurrency wallets exist and these are cold and hot wallets.
A cryptocurrency wallet is either digital or physical. The digital form is the hot wallet, while the physical form is the cold wallet.
To keep your crypto insurance safe, it is best to divide your currencies into two. One part is kept in the cold wallet and then the other is in the hot wallet.
In addition, it’s not safe to keep all your investments in one place. But with two different accounts, one is sure to be safe.
Make use of a Cold Wallet
It is advisable to use a cold wallet for a large portion of your cryptocurrency investment.
Cold wallets do not have links to online accounts. They include strings of letters and numbers that cause you to decrypt or encrypt during transactions.
This keeps it safe from the reach of hackers and online fraudsters.
Don’t Use Wallets Hosted by Providers
If there is one thing to avoid, it is wallets hosted by providers. As a user, you have little or no control over data stored by such providers.
When you use such a type of crypto wallet, you open up your information to them. This becomes an easy route for hackers to follow. Beware!
Use Tested and Trusted, Reliable Mobile Apps, Brokers, or Wallets
Before you open wallets, and accounts, don’t forget to make research. It is best to ask questions and prove the track record of whatever platform you choose to use.
When you find out how reliable or trusted apps are, you can be sure your digital currency won’t suddenly disappear due to a glitch or breach in security.
Use Strong Passwords
The most common cyber security advice is the need to use strong passwords. It is also inevitable for cryptocurrency security.
Be dynamic about your cryptocurrency safety, and use unexpected passwords. Allow it to have unusual combinations of alphabets, numbers, and characters too. You can also interchange between upper and lower cases.
Don’t Use the Same Passwords for all your Accounts
If you choose to follow the advice above to keep your investments in different types of crypto wallets, don’t use the same password.
Cryptocurrency scam becomes easy when the owner keeps the same password. And that means if a hacker successfully opens an account, he can have access to the others.
A good crypto security tip to keep in mind is avoiding the usage of the same password.
Use Two-factor Authentication (2FA)
With two-factor authentication, your cryptocurrency security can’t be breached without your knowledge.
Once you complete the authentication process, whenever a person tries to open your account, you would receive a code or an email.
What’s more, another crypto security tip to remember is never to share verification codes or passwords.
Keep your Seed Phrase Safe
Your seed phrase is provided by your wallet service. It is a list of random words that need to be entered in the same sequence as received for transactions.
A good way to keep it safe is by writing it down and storing it among your belongings. Lastly, never share this seed phrase with anyone.
Don’t Share your Secret/Private Key
Your private or security key is meant for you alone. By sharing it, you have given room for crypto scams and hackers. It is like a password too.
Know How Wallets are used for Transactions
Your knowledge of wallets, cryptocurrency security, and cryptocurrency safety is important to have a safe crypto account.
Brush up your knowledge. Know what and what not to give out. Know when and when not to use passwords or security keys too.
Don’t Use Every Available Internet Connection for Transactions
Public networks are never safe. A good crypto security tip to follow is never to use public connections for a transaction.
If you ever have to, ensure your cryptocurrency safety by using a VPN.
Always Recheck the Recipient’s Wallet Address
Virus-infected software could change a wallet address without your knowledge. To keep your crypto security in check, always check the address a second time. Third time too.
Don’t be a Victim of Social Media Crypto Scams
Social media has a lot of users. It is difficult to identify who is real, and who isn’t. To avoid crypto scams, do not make deals or transactions with unverified sources.
Social media may not be the best place to make the best profits.
Don’t Fall Victim to Phishing Attacks
Phishing attacks are similar to scams. Some go as far as creating similar websites just to have access to your wallets.
Finally, to keep your crypto safe, don’t share passwords, secret keys, or seed phrases with websites that are not verified.
Now You Have a Safe Crypto
Cryptocurrency safety is assured as long as you keep to the crypto security tips listed. Crypto insurance may not be guaranteed, but safe crypto is guaranteed.
And whatever you do, don’t forget to avoid being a victim of cryptocurrency scams.