The arrival of Bitcoin in the market has been a revolutionary move that has been transforming several industries. It has been witnessing stunning growth since its inception in 2009. It has been attracting investors from different parts of the world. However, the crypto market is still in its initial stage. They are not regulated, are extremely volatile, and breed a lot of cyber criminals and scammers. Therefore, if you are serious about trading cryptocurrencies, you must secure your cryptocurrencies. Here are some tips to ensure the safety of your crypto assets.
- Rely on reputable exchanges
Crypto exchanges are the platforms that allow you to buy and sell cryptocurrencies. Numerous crypto exchanges with high trading volumes are currently available in the market. But only a few of them are safe. Binance, Crypto.com, Gemini, Coinbase, and Kraken are some of the safest cryptocurrencies. The popular crypto exchanges have a strong team behind them to ensure safety. They have strong cyber security infrastructures to store crypto assets and safe facilities that are surveilled properly with armed guards.
- Use multiple cold wallets
People who trade cryptocurrencies rather than holding them will be using the wallets of exchanges. However, this is not a safe option when considering cyber security. Even though some exchanges are very safe, a cyber crime may happen anytime and they even stop withdrawals suddenly during downturns. Therefore, the best option is to avoid storing your crypto assets on exchanges. You may store them in multiple wallets, especially hardware or cold wallets. Cold wallets are the best when it comes to security as they do not use the internet. Try to distribute your assets across various cold wallets. Keep only a small amount in the exchange’s wallet or software wallet.
- Use a safe internet connection
Make sure you use safe internet connections to access your crypto accounts. You have to avoid suspicious sites and stop using public Wi-Fi to log in to such critical accounts. Test your firewall to find out any weaknesses and ensure that you have an up to date anti-malware software. Even though your wireless routers will have a default password, you have to set a strong password and enable its network encryption. A Virtual Private Network or VPN is the safest option.
- Two-factor authentication
A lot of people use the same password on different websites, which puts your online security at risk. To safeguard your crypto assets, you have to use unique and complex passwords and they have to be changed at regular intervals. Most crypto exchanges provide two-factor authentication nowadays. Some even offer multi-factor authentication. It provides more security against breaches and other fraud practices.
- Be cautious about scams
Cryptocurrencies and unregulated and decentralized, which attracts scammers. In 2021, scammers managed to loot cryptocurrencies valued at about $7.7 billion. Phishing attacks have also become common. Therefore, try to avoid suspicious links and ignore giveaways on social media. Double-check the authenticity of the site before starting an account. Keep deals with trusted crypto entities only.