3 Smart Ways to Keep Your Cryptocurrency Wallet Secure
Every now and then people keep discussing about the different dangers related to Cryptocurrencies. Recently the Japanese Syndicate got robbed. Hence, it’s very obvious for a person to wonder about the ways in order to keep his cryptocurrency Wallets secure.
Many People’s Dilemma
As the year passes by, there are more questions raised against the Security of cryptocurrency, rather than the answers to provide a secure platform.
Another problem faced by many is the lack of mere knowledge about crypto or bitcoins. They always tend to wonder why they are not supposed to store bitcoins or altcoins for a long duration of time on either Binance, Coinbase or other in-built exchange wallets.
These people at the same time, tend to have another set of questions dangling in their brains regarding the security or safety issue of their investment in particular crypto wallets.
In order to answer all the doubts, just keep reading further.
Ways to Keep your Crypto Wallet Secure
A person must first have a proper knowledge about cryptocurrencies and also he must believe that the investment which he makes on the crypto wallets are as safe as his cryptocurrency wallets.
Here are 3 of the most useful as well as smart ways to secure your crypto wallets and solve the above mentioned dilemma faced by most of the people.
Method #1 – Always Remember to keep Multiple Backups
Isn’t it common to see that every app these days have a backup?
Wouldn’t that make your job easier in transferring your data or in maintaining the old data which could be used later or taken from as archive?
Take for example, WhatsApp. Once you change your phone, it is common to that you would require all the old data such as chat conversations, music, photos, videos, documents, etc. WhatsApp has a good backup retaining method which allows your new phone to get back all your old phone’s data. But it must be noted that this could happen only if you had backed up your data earlier. The same could be witnessed in PCs, etc.
With a backup option, one would surely feel relieved and not worry about missing data.
The same needs to be kept in mind with cryptocurrencies as well. You are spending more money as an investment on crypto so why not safeguard the data by backing up the digital money?
But yes, the process of backing up your cryptocurrencies is indeed tricky and could turn out to be confusing at times as well. This is mainly because a person cannot trust or expect a centralized service or a cloud service to do your job of backing up, which happens with all the other apps or devices.
As mentioned earlier, the cryptocurrency could only be as safe as the service; IF it doesn’t get robbed or hacked.
Also, the main aim of crypto was to give the power of such cryptocurrencies such as Bitcoins, Ethereum, or Monero in the hands of the people. So by expecting a centralized or cloud service to handle the cryptocurrencies would mean that you are giving up on your power to those parties, which is a definite NO.
So then how will you have a backup?
The answer lies in the words ‘offline backup’. This basically means that you need to keep a backup of the private keys offline, i.e. at a place or location which only you would know. The location should also be one which you could easily trust.
What to do if your crypto wallet is an HD wallet?
The answer is simple. All you have to do is store the seed or the mnemonic phrase at more than two or three locations or places which only you would know. More locations means better security but care should be taken that the places don’t exceed a certain limit otherwise you would tend to forget few locations eventually.
This way you could gain more security because the mnemonic phrase or the mnemonic passphrase at more than 2 places would confuse the hacker or attacker. Thus, not letting him access crypto wallet.
It should be noted than having a backup of your PIN code or username or even your password (as few crypto wallets provide all three of these features).
This would save the ones with a bad memory as there could still be a source from which you could refer without giving out much details.
Method #2 – Use the most Important, Best as well as Safest Wallets
It is more of common sense for a person to choose the best crypto wallets among the entire lot to store your cryptocurrencies. This is by far the easiest way in order to secure your wallet.
The reason behind choosing the best crypto wallet is mainly because these wallets are secure since while choosing them one would have gone through the various features including security features. But in case you didn’t then please do so hereafter.
The biggest threat to your cryptocurrency investment is not volatility, but the security of your funds.
Few of the security features include PIN code features, Pass-phrase features, as well as (2FA) 2 Factor Authentication features.
2FA is defined as follows-
“Two Factor Authentication or 2FA is one of the most powerful ways to go about the security of your account, and we have all been guilty of neglecting it. It adds another level of security to your trading account. With standard security methods being extensively used around the Internet, it is scary to know how easy it has become for cybercriminals to get their hands on your account’s User ID and Password. 2FA helps to make sure that cyber-criminals are not able to log in to your account even if they have access to the account’s credentials.”
It is obvious that a wallet with more security features tend to be better than one that doesn’t. Another important factor to be considered is the development analysis team behind that crypto wallet. The different factors for the analysing process are –
- Ease of use.
- Control of Private keys.
- Active development community.
- Compatibility feature with various other OS.
- Good backup and security features.
Method #3 – Utilise the Best Practices among the entire Digital World
A person must keep in mind the various digital threats to the cryptocurrencies since crypto is also a digital world, hence, the threats like Trojans or malwares or even bots need to be removed. Basically, the crypto wallet need to be protected from them completely.
Most of the crypto universe is handled through the online services. Few of the online wallets which the user uses are the desktop wallets, mobile wallets, web wallets, etc. So, it is of utmost importance to use these online wallets after securing them.
Few of the key suggestions in order to secure a person’s crypto wallet from the digital world is mentioned below, by following which, you could make your particular crypto wallet one of the most secure as well as a very good non hack-able wallet.
- 2 Factor Authentication
- Usage of the Punycode alert, a chrome extension, in order to avoid the cyber-attacks on yourself. (You could learn more about Punycode hacking by clicking here.)
- Avoid using a public Wi-Fi signal
- Use good anti-virus as well as anti-malware software
- Make sure to check the websites URL more than once in case of using web wallets.
- Install a secure and powerful Firewall
- Ignore installation of un-verified software or apps
- Keep your wallets updated and make sure to use just the trusted wallets
- Keep the passwords extremely difficult to crack but at the same time don’t forget.
These are few of the common crypto wallets used –
- Ledger Nano S– Hardware Wallet
- Trezor– Hardware Wallet
- Exodus– Desktop Wallet
- MetaMask– Desktop Wallet
- MyEtherWallet – Web Wallet
- Coinomi– Mobile Wallet
- Mycelium– Mobile Wallet
(You could click on the links above to use these wallets as well as find out their uses and features.)
By following the above 3 important methods in order to secure your crypto wallet you would be among the safe crypto users with nothing to fear since the hackers would definitely have a crazy time in decoding your account or in other words, they will not be able to hack your crypto account.
There is a quote which goes this way, “With great power comes great responsibility”.
You have now made your crypto account safe and secure, hence you ought to be powerful, but what about the others who could be prone to cyber hacking and would therefore tend lose huge amount of money?
Hence you must be a novel as well as a reliable person and follow the quote by sharing your knowledge with them. This way the whole crypto universe would eventually be safe and secure. Whereas the hackers would just be job-less and probably go crazy by trying to hack such a powerful network.
Thus with this power of secure crypto wallets in the hands of ordinary people could give way for crypto to grow further rather than many fearing it or finding faults in it.