Steps to Protecting Your Cryptocurrency

The growth of cryptocurrency means that more and more people now own digital currencies. Since these are still a relatively new type of currency, however, not everyone is sure how to keep cryptocurrency safe. How do you make sure no one steals your crypto, either from your wallet or an exchange? There are a few simple things you can do to ensure your crypto is as protected as possible.

Avoid Public Networks

Whenever you are accessing your cryptocurrency wallets, accounts on exchanges, or anywhere else you hold cryptocurrency, take precautions. Start off by only doing so via a private network, like your home one. Furthermore, make sure the password on that home network is strong so no one can sneak onto your Wi-Fi and spy on your activities. If you have to use a public network to access your crypto accounts, always use a VPN as this will hide your IP, identity, and other info.

Be Smart About Passwords

You should be smart about all your passwords in your daily life, but this is particularly important with crypto. After all, if someone steals your password and accesses your account, they can make a transaction to steal your crypto. Since all crypto transactions are final, you will have no recourse. When creating your password, try to make it long, ideally at least 20 characters, and complex. If, like the average person, you cannot remember multiple complex passwords, use a secure password manager to do so for you.

Use Two-factor Authentication

Supplement the strong passwords that you use with two-factor authentication. This process requires you to register any new device by receiving a code via text, email, or an application. It reduces the risk of a hacker being able to access your crypto accounts to steal funds.

Choose Your Wallet and Exchange Carefully

When it comes time to choose where to store your cryptocurrency, take your time. You want to ensure that any exchange you store crypto on is safe and has strong security measures in place. Exchanges can be tempting for hackers since a single successful attack can bring in millions of profits. Be just as thorough when choosing a wallet and opt for something with a good reputation and strong security features.

Store Your Crypto in Multiple Locations

Even if you do everything in your power to protect your crypto, there is a small chance that something will go wrong and you will be at risk. Reduce the impact of any potential hack or scam by keeping your crypto funds spread across multiple wallets. This way, even if some of your funds are lost, not all will be. Ideally, you should keep as little as possible on crypto exchanges since they are prime targets for hacking. Then, store the crypto you need readily accessible on a mobile, web, or desktop wallet, or even several of them. Keep most of your crypto in cold storage where there is almost no risk of a cyberattack.

Other Advice

In addition to all of the above, use encryption whenever possible and create backups of your wallet. Also, make sure that any device you use to access your crypto accounts is secure with the latest updates as well as anti-virus software.