How to Safeguard Your Cryptocurrency Wallets!

Cryptocurrency Wallets

Recently, bitcoin increased its value, and it reached the all-time highest price in November. However, it was 2021, and there were a lot of swings in the different digital cryptocurrencies and cryptocurrency wallets throughout the year.

Due to these fluctuations in the prices, it attracted investors and some cybercriminals. Since the inception of 2009, multiple hacks have occurred in the cryptocurrency space and cryptocurrency exchanges.

Also, different crypto coins are being used for money laundering activities which is certainly not the best use. In 2019, about $4.3 billion worth of cryptocurrencies were there in illegal activities. Also, criminals have already stolen different crypto coins of both dollars 125 million.

The major threats that stand in the way of the security of your cryptocurrencies are through your crypto wallet only. However, sometimes it can also be through the cryptocurrency exchange providers that you are using.

The cryptocurrency wallet is where you store your digital coins and the private keys that you can use for getting access to digital coins online. However, the private key is your identity to the whole crypto space and also, anyone who gets these private keys can steal your cryptocurrencies.

Most cryptocurrency criminals who steal your digital coins perform some sophisticated techniques only. They want to compromise your digital wallet or security so that they can steal your digital coins without your knowledge. Therefore, to secure your cryptocurrency wallet, you need to protect them from any digital cyber-attacks. That is only possible if you know the techniques to do so.

In this post today, we will enlighten you regarding some crucial ways to secure your cryptocurrency wallets and coins.

Use cold wallet

Over time, there have been a lot of inventions made in the cryptocurrency space also. You need to understand that, like hot wallets connected to the Internet, cold wallets are available nowadays. These are the wallets that are hardware wallets and can provide you with the most viable options for the safety of your crypto coins.

These wallets keep the keys encrypted and ensure high safety for your crypto coins. In 2019, the Japanese cryptocurrency exchange was robbed-off of $32 million worth of cryptocurrencies, and they were in the hold of more than 50,000 users. That particular cryptocurrency exchange held all the digital coins with the hot wallets only. Therefore, it is entirely evident that holding all your digital assets on the hot storage wallet is not the best option for you to choose from .

Maintain multiple Cryptocurrency wallets

You have an unlimited number of limits for creating a digital wallet and, therefore, make sure to utilise it properly. Diversifying your cryptocurrencies within different cryptocurrency wallets is also an important decision that you make. To make your daily transactions, keep the required amount of cryptocurrency is safe at the port storage wallet.

The rest can be kept secured with the cold storage wallet, which is not usable. It is one of the best tips that anyone can use for securing digital assets as all the cryptocurrencies will never be on the Internet, and hence, I will be less vulnerable.

Use secure Internet

Whenever you are willing to make a transaction using your cryptocurrencies, make sure to avoid any public Wi-Fi network and use a secure internet connection. Whenever you are accessing your home network, prefer using a VPN so that no one can trackback your address.

When the user’s IP address is stressed, it is much easier to hack cryptocurrencies. Hence, it is essential to ensure that your IP address is changed and your location using a VPN whenever you browse your crypto coins privately from the phone network.

Secure personal device

It is also imperative that the lack of personal security devices can be a reason for the death of your crypto coins. So, ensuring the safety of your device is also essential. Ensure that the antivirus you are using is the latest, and it protects you against any newly discovered vulnerabilities.

Antivirus and different kinds of firewall security will improve the security of your device overall and hence will provide you safety from any hacks and theft of your crypto coins.

Change password regularly

The same password for a very long period makes your cryptocurrency more vulnerable in the crypto space. Yes, when you keep the same password for a very long period, the algorithmic data which secures your digital coins will not be modified.

Because of this, the hacker gets an upper hand pilot tracing the password you are using for your crypto transactions. When you regularly change the password multiple times, the algorithmic data securing your digital coins changes. By this, it is difficult for hackers to guess or get a hold of your crypto coins.

Also, regular changes in the password ensure that anyone who knows you does not get a hold of private keys. Sometimes, it is none other than our known people who steal our digital coin.

Cryptocurrency wallets article and permission to publish here provided by Jean Nichols. Originally written for Supply Chain Game Changer and published on January 28, 2022.

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