The popularity of cryptocurrency investment grows more and more by each year because you can truly earn a lot of money. However, it is not as easy as it sounds. If you want to be a responsible and serious investor, you need to put in a lot of time, effort, a will to learn, and patience in order to achieve that goal. However, even though this activity became so popular worldwide, there are still a lot of people that have been hesitant when it comes to crypto investment because it comes with a security risk. People are afraid that they can lose all of their money since all responsibility to protect their investment lies with the investor.
Basically, the treat to your digital cryptocurrency is happening through digital wallets. For those who do not know, digital wallets are not the one that is storing digital coins, however, it holds the private key which allows trading and using cryptocurrencies. Therefore, you can look at the private key as it is your digital identity and anyone who takes advantage of it can perform transactions or steal your coins. Now, you are probably understanding the importance of securing your wallet and protecting your digital currencies against any form of cyberattack. Let’s get to the point and list some of the most significant tips that can help you on that path.
You can use a cold wallet
If you did not know this – there are actually two types of crypto wallets, a hot and a cold one. When it comes to the hot wallets, are connected to the internet, while on the other hand, cold wallets are actually offline wallets because they are not connected to the internet. You need to understand that hot wallets can be logged in from anywhere at any time. However, they come with a huge risk in the terms of stealing the data that it holds.
On the other hand, cold wallets require the necessary technical understanding when it comes to setting them up. However, they are considered much safer than the previously mentioned one. There is one important thing you need to remember is that even though the cold wallet is a safer option, you can not lose or forget your password, because it can not be recovered in any way. Your crypto private keys are going to be stored under several layers of security.
Consider trying 2-factor authentication – 2FA
Very few people have a chance to hear about this term authentication factor. However, it is very significant to know how you can benefit from it in case you want to be a serious crypto investor. 2-factor authentication can provide your account with an extra security layer. This means that if in the case someone wants to log into your account, you are going to get immediately a message with a verification code. With this security measure, hackers will truly face a challenge to access your account. They would need that verification code which they can never get.
Be very careful when it comes to crypto scams on social media platforms
Let’s be honest, people are now all around the world using different social media platforms and they are using them for multiple purposes. When it comes to crypto trading, people are generally watching or reading different videos or blog content on this topic because they are hoping they can get some significant advice that can provide them to earn a lot of money. It is very important to research carefully the source you are getting the pieces of advice from, so you won’t risk losing all of your money if they give you wrong information.
Therefore, find the channels and platforms you can rely on. This means that you need to research very carefully and find the ones that are reputable, reliable, and credible. That also counts for the trading platforms you are going to use. The last thing you want to do is to trade your money on some unsecured platform where you can lose all of your money. Because of that, choose reliable ones such as bitcoinscodepro and invest your money without worrying about any possible risk.
You must keep the seed phrase in a secure and safe location
As you probably know, the seed phrase represents a collection of 12 to 24 random words that are generated by a wallet service. When you are signing in to your account, this seed phrase needs to be entered in the exact same sequence. We will mention one more again, you need to remember your password since you will not have the option to forget it.
This means that if you lose your seed phrase, you are totally going to lose access to your digital wallet. Therefore, find a safe, secured, and protected offline location or place where you are going to keep the seed phrase. You have plenty of options, the easier and more effective one is to write it on a piece of paper and store it somewhere.
Have a strong password and change it frequently
It is interesting that many people across the whole globe are using the same password for accessing multiple devices or accounts. Additionally, they often use ridiculous and easy passwords, such as 1234567. This is, according to studies, the most common password. We understand that you want to put some password that you can easily remember, however, when it comes to the security of your account, this is not the wisest decision to make. In fact, you are truly putting your account at risk of cyber attack.
On the other hand, you should not use some completely random password just to make it as hardest one that no hacker can think of. This is because you can easily forget it as well. Creating a strong password needs to include something that is personal to you, that includes a minimum of 8 letters and numbers and that is randomly generated.
We suggest you keep your investments in multiple wallets
One more mistake that you should avoid is to keep all of your digital money in one place – one wallet. Why would you risk losing all of it in the case some hackers attack it? Therefore, it would be a much wiser decision to divide your digital coins into a couple of wallets. This is one of the very important tips in the world of cryptocurrency trading. For instance, if you are using a day trading strategy, use a hot wallet for that type of transaction and use a cold wallet for holding your digital cryptocurrencies.