As of October 2023, more than 19.5 million Bitcoins are circulating, leaving just 1.5 million BTC left for mining.
Bitcoin developer Satoshi Nakamoto’s idea of creating a currency without the need for trust requires individuals to store their cryptocurrency in a wallet that supports self-custody and keeps their seed secure. But to accomplish these two main factors, you must take action. Keep reading the article for some ways to protect your crypto investments.
1. Protect Your Private Keys
Hardware wallets can store users’ private keys on a secure device. One significant advantage of these over standard software wallets is that hardware wallets are immune to computer viruses that steal from software wallets.
Ledger hardware wallets provide a simple and secure way to manage private keys. The wallet generates unique private keys using secure hardware and software during setup. These private keys are stored in a secure section of the device, making it impossible for anyone to access them in plain text.
2. Limit Access to Your Wallet
Keeping your wallet stored safely is vital. Learning self-custody involves minimizing the risk of losing your assets and valuable information in case of system failure or cybercriminal activity. Your seed phrase or private keys are for your eyes only and should not be shared.
It is recommended to keep a separate online wallet for your daily transactions and to use a hardware wallet to store the rest of your portfolio more securely.
3. Avoid Public Wi-Fi
Performing crypto transactions over open networks exposes you to vulnerabilities, as anyone using public Wi-Fi can easily intercept your traffic. Hackers can detect if you visit crypto sites and how often you visit them—and they may even be able to see your transactions.
This means using a secure internet connection while accessing your crypto accounts is incredibly important. It’s also strongly recommended that you purchase a virtual private network (VPN) to maximize your safety.
4. Back Up Your Wallet
Creating backups for your software wallets is crucial to securing your cryptocurrency assets. One of the most common methods to back up your wallet is by writing down your seed phrase on paper.
However, it’s strongly advised that you create a wallet recovery file instead. This file is encrypted and can be stored on cloud services such as Google or iCloud for easy wallet recovery.
5. Secure Your Home Wi-Fi
It might seem extreme, but it is crucial to use WPA2 security and a strong, unique, long password for your home WiFi network. When it comes to finances, many untrustworthy sources are trying to access your information—and can do so if your network is not secure.
6. Avoid Downloading Fake Software
Cryptocurrency is becoming increasingly popular worldwide, but unfortunately, this has led to the creation of fraudulent apps that trick people into giving away their crypto. It’s essential to be aware that hackers can steal your cryptocurrency by luring you into downloading a fake wallet or using a fake one. Avoid falling prey to these scams by only downloading wallets from the developer’s official website, and refrain from clicking on online ads.
7. Use Two-Factor Authentication
Most cryptocurrency exchanges and similar platforms require the use of 2FA, which means you need to provide at least two verification methods—such as a password and an SMS code—to access your account. This significantly reduces the chances of experiencing a security breach. When it comes to cryptocurrency, you essentially act as your own bank and are fully responsible for the security of your assets.
8. Use Multi-Signature Security
If you’re planning to invest a significant amount of money into cryptocurrency or to purchase a large number of assets such as NFTs, ensuring their online security is essential. One way to do this is by creating a multi-signature wallet.
A multi-sig wallet is a kind of cryptocurrency wallet that requires multiple private keys to authorize a transaction. When using a regular wallet, a single private key is used to sign and authorize transactions. However, with multi-sig, an extra layer of security is added by requiring multiple private keys to complete a transaction.
9. Keep Your PC Secure
It’s crucial to keep your system and security software updated to ensure the safety and security of your computer. These updates not only remove any previously discovered vulnerabilities in the system but also enhance the security of your software.
Moreover, these updates make your computer more efficient and effective in performing its tasks. It is also of the utmost importance to have firewalls and anti-virus and anti-spyware software installed on your system.
10. Make a Strong Password
Do not use the same password across multiple platforms. To make it harder for hackers to crack your passwords, you should create complex and unique passwords and change them at least a few times a year. If you use a combination of both uppercase and lowercase letters, symbols, and numbers, you can significantly increase the strength of your passwords.
11. Only Reliable Wallets Allowed
The best way to store your cryptocurrencies is to keep them in multiple wallets, preferably in cold storage (i.e., hardware) and non-custodial wallets, where you have the sole right to store your private keys offline. Exchanges may be vulnerable to hacking, phishing, and other threats. Some platforms may also restrict withdrawals, especially during market downturns.
12. Keep a Low Profile
If you hold and invest in cryptocurrencies, it is recommended that you maintain a low profile online to avoid attracting unwanted attention from individuals who may be desperate and willing to put your life and theirs in danger. It is advisable to keep your crypto holdings anonymous as much as possible to ensure your own safety and well-being.
Crypto Wallet Security Is Key
Ensure the safety of your assets and protect them from scammers and hackers by taking preventive measures against any potential threat now rather than later. Implement the proper security measures so you can hold like a diamond hand safely and securely!