Want to keep your crypto safe? This guide will help you a lot in keeping your cryptocurrency safe. The convergence of cryptocurrencies and cybercrime evolved into a $14 billion market in 2021, as shown in a new analysis prepared by Chainalysis. Sadly, cultures throughout the globe are beyond flawless, and the fast growth in the market valuation of cryptocurrencies has resulted in an increase in criminal activity directed toward blockchain aficionados.
The excellent thing is that the number of funds stolen from criminals as a fraction of cryptocurrency’s overall market valuation decreases.
Among the most crucial factors to remember while owning bitcoin will be how to keep it? Cryptocurrency is not protected in almost the same way that savings in a bank account or major transactions via a broker are. Cryptocurrency storage is your obligation as the operator.
Here are several methods you Can use
Two Factors Authentication
The first thing to keep your crypto safe is to enable two-factor authentication onto accounts. So, this is just a second step used to log in to certain exchange accounts, so if you are using Binance or coinbase, you can enable two-factor verification.
Some exchanges offer SMS text messages, and most of them also offer Google authenticator support which is an app that you can download from either the iOS or play store.
And suppose you want to be super secure. In that case, you can link up something called a UBI key, which essentially is a random number generator, and it will do that in sequence with your account, and then that will only be available to be logged in when the numbers match and you enter them at that point.
Enabling whitelist addresses is another one most exchanges will allow you to set up a whitelist of addresses to send your coins. So, suppose you have any other accounts, wallets, or friends you need to send bitcoin to. In that case, you can copy all of those addresses into your Whitelist and then only send two addresses to that Whitelist.
If you want to add any addresses, you have to go through two-factor authentication, which means someone somehow breaks into your account. They want to send some bitcoin or other cryptos to an address that isn’t in the Whitelist, it’s going to be harder for them, so it’s just an extra step of security.
Take Crypto Off Exchange
Do not even leave your cryptocurrency assets on an exchange; there have been numerous incidents of hundreds of millions of dollars value of bitcoins simply disappearing suddenly, with no way of recovering them.
Custodians or custodial exchanges are what you get when you utilize bitcoin exchanges like Binance or Coinbase. You don’t truly own any of the coins you trade on these exchanges.
They are custodial, so they keep all of these cryptocurrencies, and then basically, they divide up the amounts depending on the account which traded them. There are some advantages to this though it does increase security overall; they can have a more centralized way of doing things which also reduces costs. So, there are some benefits of using custodial; they are just more consumer-friendly.
The most secure approach to store cryptocurrency is in hardware wallets. You obtain encryption information when you buy a hardware wallet. You require secret keys to possess cryptocurrency, you don’t even have any cryptocurrency in your account, but you should have secret keys, which effectively tell everyone else that you own multiple cryptocurrencies and are willing to spend them.
When you buy a hardware wallet, you will get a recovery phrase between 12 and 24 words. So, that’s the next tip:
Always keep your recovery phrase separate from your hardware wallet. When you set up your wallet, you will probably put a PIN in there like a credit card, set up a pin, and give you this 12-word recovery phrase, which is extremely important.
So, it would be best if you kept that somewhere extremely safe. Most people recommend keeping this in like a fireproof and a waterproof box.
Next, if you’re doing anything with Bitcoin on public Wi-Fi, such as paying for items with bitcoin, checking your accounts, sending money to pals, or moving money from your exchange account to your wallet, you should utilize a VPN.
If you’re using accessible Wi-Fi, you should certainly utilize a VPN because anyone may hack into your device.
Next is to be aware of Phishing scams, and there are many instances where people have had their personal information hacked. The reason is that if you receive a phishing scam, it means the exchange may have been hacked.
Ledger makes fantastic hardware products, and many people use them to store their cryptocurrencies. Still, recently they suffered a hack not with the hardware wallets but with their e-commerce department, and their e-commerce arm holds everyone’s details that brought a ledger.
Change your passwords regularly
When it comes to safety, the value of secure encryption cannot be overstated. As shown in research, three-quarters of millennial consumers in the United States use identical passcodes on more than ten different devices, applications, and social media profiles.
According to the report, most of them have also been using similar passwords, including over 50 various websites. Ensure you have a powerful, complicated, and incredibly hard password that you update on a constant schedule. If you have many accounts, use different passwords for each.
Keeping Your Device Safe
To protect against recently identified problems, make sure your device is up to date with the newest antivirus software. To prevent attackers from exploiting the flaw by building programs to target the vulnerability, use a robust antivirus and antivirus to increase your device’s protection.
Finally, the privacy of your Cryptocurrency wallet is your responsibility. Because the cryptocurrencies industry is always growing and security systems are improving.
You must take the appropriate steps and remain up to speed with the newest security enhancements and upgrades to keep your Bitcoin or another crypto account secure from ill-intentioned individuals.
The cryptocurrency sector is always changing, and you solely should safeguard your virtual money by safeguarding your wallet with the necessary security features. Keep up with the most security-related developments, attack methodologies, and defense measures.