10 Ways to Keep Your Cryptocurrency Safe
1-Take a hybrid approach to digital wallet security.
Online wallets have grown in popularity and attract the attention of hackers. Offline or physical wallets should be used to store the majority of a consumer’s cryptocurrency, while only keeping a small amount of currency in the online wallet, says Terence Jackson, chief information security officer at Thycotic, a Washington D.C.- based provider of privileged access management solutions
2-Two strong passwords are key.
Never reuse passwords across your accounts, especially since cryptocurrency services are prime targets for hackers. Assume that all of them will inevitably have a data breach, says Kevin Dunne, president of Greenlight, a Flemington, New Jersey-based provider of integrated risk management solutions.
3-Work with reputable cryptocurrency wallets, exchanges, brokerages and mobile apps.
Before deciding which platforms to use, investors should carefully research each platform’s security features to understand how their data will be protected. “Entities to be trusted should incorporate best security practices such as requiring multifactor authentication, SSL/TLS encryption and using air-gapped devices that are kept offline when storing cryptocurrency,” says Austin Merritt, cyberthreat intelligence analyst at Digital Shadows, a San Francisco-based provider of digital risk protection solutions
4-Protect yourself from mobile phishing.
Many people who have a bitcoin wallet use a smartphone app to keep track of their funds. According to Hank Schless, senior manager of security solutions at Lookout, a San Francisco-based provider of mobile security solutions, as the price of these commodities rises, malicious hackers are motivated to target investors with mobile phishing campaigns in order to steal your login credentials.
5-Be aware how your wallet is used in transactions.
According to Dirk Schrader, worldwide vice president of New Net Technologies, a Naples, Florida-based provider of cybersecurity and compliance software, apply the key ideas of “cyber resilience” to your wallet. “Any crypto wallet is a collection of data and code, but it’s a collection with a lot of value for you and others.”
6-Understand the different methods and processes to protect your digital currency.
People who do not have a technological background but want to diversify their portfolio are increasingly interested in investing in cryptocurrencies. Because no authorized body or central bank manages digital assets, it is up to the user to keep their money safe, according to Brandon Hoffman, chief information security officer at Netenrich, a San Jose, California-based supplier of IT, cloud, and cybersecurity operations and services.
7-Avoid sharing the secret key.
According to Hoffman, the secret key is used to verify that the individual sending or receiving the digital currencies is the owner of the wallet in question. This private key or secret should never be disclosed. “Cold storage is the safest approach to keep your private key,” he explains. “Essentially, cold storage entails printing your key and erasing all digital traces of it.”
8-Skip using wallets hosted by providers.
Other methods of storing Bitcoin are wallets hosted on your laptop or desktop and wallets hosted by providers. The wallets hosted by providers are the “worst choice because you are allowing them to store your private key on their servers which are totally out of your control,” Hoffman says. “This is the most common choice because it requires the least technical effort
9-Cold wallets have their drawbacks for active traders.
A cold wallet is entirely offline and requires either writing down the private address on a piece of paper that only the owner has access to or purchasing a physical device that securely stores cryptocurrency funds, says Thomas Beek, senior cybersecurity specialist at Digital Shadows
10-Hot wallets are more convenient for traders, but losses could be greater.
Retail investors can use hot wallets, a storage option that is connected to the internet at all times to facilitate easier access and the ability to trade and buy other cryptocurrencies more conveniently, such as Coinbase and PayPal, Beek says. The trade-off is security and entrusting the platform with the security of both your public and private address, which “historically has resulted in the loss of significant funds following the successful breach of an exchange,” he says
