If you are still into crypto and all the challenges that come with it, probably you are not happy following the recent news about the market drops. Of course, we are aware of all those things about volatility and the risks, but we also don’t want anything bad to happen to this market. Hopefully, things will change for good soon, and we will be able to enjoy the price peaks over and over again.
Probably you already know that you need to use crypto-wallets separately from your exchanges. Most exchanges come with an integrated wallet, which is nice, but that’s not the safest option for those who trade large volumes of money. But, there are still threats and dangers around, and as a crypto owner, you need to do anything you can to protect your assets. Probably you already know about the private and public keys, cold and hot wallets, and many other potential solutions for your crypto activities.
The crypto market is really prone to hacker attacks and cybercrime. Therefore, it is quite understandable that you want to do everything possible to protect yourself and your savings. Many people give up the idea of entering this world just because they are afraid of risk. This is understandable because if you lose your crypto money, their return is virtually impossible.
Having a crypto wallet means keeping your coins away from hackers. But is that enough?
1. What Is a Cold Wallet and How to Use It
This is a digital solution, usually hardware similar to a USB drive stick, that is never connected to the Internet. That means it’s not at risk of hacker attacks. You need to store the private keys in a cold wallet, so no one can access them.
The private key is a string of characters that is generated randomly. It’s a unique combination of numbers and letters, and it’s used to code and decode the crypto data, to access the stored values.
As you can see, cold wallets and private keys are tightly related. They literally co-exist with each other.
You can find it under the names of non-custodial wallets, or self-custody wallets too. That means you are in control of the private keys, and no one else is able to access the contents. You have to be very careful because losing the keys usually means losing all your saved assets. And we are sure you don’t want that to happen.
2. Use a Few Digital Wallets
This is probably the best piece of advice you will get today. Why? Imagine putting everything you have in one pot, and it burns down. Now, you have nothing. But, if you split your belongings into a few pots or boxes, you have time to save most of them. It’s the same with the money. If you keep everything in one bank, it would be forever lost if something bad happens to the bank.
Do you see the reason? If you have, for example, four Bitcoins, you can easily store them in a few wallets, splitting the amounts. So, if one of the wallets gets hacked, you still have the others available. Smart people already know this tip. It’s not a way to secure the wallet. It’s more about securing the assets.
3. Use Trusted Exchanges for Your Hot Wallets
In order to trade and exchange, you need to find a trustworthy platform, just like the Bitcoin era new, and create a profile. These services come with an integrated hot wallet, which means it’s needed, even though it’s prone to hacker attacks. The best solution is to stick to trusted and reputable exchanges. That gives you a feeling of security while you trade your cryptos all day long.
4. Be Careful With the Two-factor Authentication
We know that you use this or Facebook or Twitter. So, you shouldn’t ever skip on it when it comes to your crypto wallets. But, be careful. Many experts will suggest you avoid SMS confirmation because it’s so easy to track the wallet down when it’s synced with a phone number. But, there is really no other way to add 2FA to your cold or hot wallet. What you can do is to make sure the carrier won’t give your personal information to anyone. Many hackers know some SIM scams, and they can transfer the data to their phones. So, make sure that your phone number is always protected with proper security protocols.
Additionally, you can use a password manager, but make sure you don’t use the same password for any other service. And of course, if you don’t know any other way, make sure you write all the keys and passwords down on paper and keep it like it’s worth a fortune. Because it practically is that worthy.
5. Avoid Phish
It’s not that easy, but you will do what you have to do. Don’t click on suspicious links from unknown senders. This type of scam or phish is still very common, even though it’s older than the cryptocurrencies in general. But somehow, it still works for some people to scam others by sending suspicious links. If you use messaging apps, you may also receive links from bots, or even offers that may seem like a good deal. But we are sure that you are wiser than that, and that you will recognize the risks before you become a victim.
There is not a lot that you can do. Cryptocurrencies are still a controversial topic in many parts of the world, so you don’t really have some legal protection to hold on to. But, you can still use the known methods, especially the ones we mentioned in this article. So, if you think about investing and saving crypto coins, you should be aware of every security challenge.
We really hope that our article will help you figure out the best ways. Get ready, because if we can trust the past, the crypto market will quickly recover, and the prices will go higher soon.