How to secure your cryptocurrency assets

By |2018-11-27T23:47:40+00:0027 November 2018|

The crypto market is an exciting frontier with tons of opportunity. While it’s easy to get caught up in the ideas of the emerging market; the best way to enjoy cryptocurrency is to be involved safely. While it’s relatively easy to purchase any type of cryptocurrency coin, that doesn’t mean that coin doesn’t bounce around dozens of places before landing in your lap. We’ve covered secure buying, like purchasing from trusted sources. However, knowing how to keep your assets secure after purchasing is just as important. There’s several practical ways to keep your crypto assets safe.

Before practicing security tactics, it’s important to understand the ways you’re at risk. You can read all about how and why hackers steal crypto assets, but hackers aren’t the only cause of missing assets. Things like losing access to online resources or misplacing a hardware wallet both top the list of asset threats. With many trusted sites investing in top-notch cyber security, the threat of old-fashioned hacking is minimal. However, practicing safe internet habits like regular password changes and backing up data are both quick, simple ways to protect yourself.

While some people choose to store their crypto assets on a digital wallet, the pros recommend a hardware wallet. Hardware wallets are storage devices similar to flash drives. They are used to store your crypto coins offline and can be physically stored in safer places than digital wallets. Once disconnected, hardware wallets can’t be accessed by potential hackers or the next person to use your device. However, that doesn’t mean you’re completely safe from lost assets. Using hardware wallets means being responsible for a physical asset that holds your digital assets. If you misplace your hardware wallet, you’ve misplaced all of the data it holds with no other way to access it. Designating a place for your hardware wallet and ensuring it’s returned to that place after use is the best way to prevent misplacing or altogether losing your wallet.

If using a digital wallet, it’s important to use one from a trusted source to mitigate risks of hacking. Digital wallets are secured using PIN numbers. If hacking doesn’t jeopardize your assets, forgetting the PIN number might. Some early investors of Bitcoin placed their coins in digital wallets and didn’t return to those wallets for years. As time passed, PIN numbers were forgotten and those investors lost the Bitcoin they originally purchased for dirt-cheap.

While securing the hardware or digital wallets you use are practical ways to secure your crypto assets, wallets don’t pose the only threat to your crypto assets. You can read more about avoiding other common scams here.