How to Enhance Cryptocurrency Safety

Rina Richell
SEO Analytics Manager  

Buying cryptocurrency is one aspect; maintaining cryptocurrency safety requires a whole other level of knowledge and skills that are possessed by the experts only. Ideas for the safekeeping of cryptocurrency is a requirement in the modern world. Keep in mind that cryptocurrencies are based on cryptography which in turn is a study of techniques used for safe communication. It is extremely difficult to hack a Blockchain or private keys as hacking an algorithm protected through cryptography will need a near-impossible amount of computational capability. Despite such safety measures, there have been many reported instances of cryptocurrency thefts. It is more likely to happen to those just beginning their foray into the cryptocurrency market. Here are some cryptocurrency safety tips for protecting your digital assets.

Four Tips for Protecting Your Digital Assets:

1. Be aware of phishing attacks

Phishing is a fraudulent attempt for acquiring sensitive information from the users by hackers disguising themselves as a trustworthy entity. Hackers use a common scamming technique that involves the creation of a fake version of an exchange that is identical to the exchange. Or it may involve creating a web wallet page identical to that held by the cryptocurrency holder. The hackers will mail this link to the scam victim together with a convincing message. The message will convince the victim to log in and take action. There are many instances of people giving in to this tactic and accessing these sites to enter their details. This data is then used by hackers for doing what they wish. To avoid this phishing attack, ensure that the link displayed in the browser is the same as the one in the web wallet or exchange.

2. Do not store cryptocurrency on exchanges

Even when you are taking the right actions regarding cryptocurrencies, it does not mean that the cryptocurrency exchange is also doing the same. Many cases in the past indicate that large exchanges have lost the funding of users or are freezing. It can either be because of hacking or technical errors. When you are planning to trade the funds, transfer them from the exchange in the wallet. If you still wish to keep the cryptocurrency in an exchange, you can opt for some safe alternatives such as eToro or Coinbase. These are safe alternatives, and your cryptocurrency will lie safely in these exchanges.

3. Buy a hardware wallet for cryptocurrency

Using a hardware wallet is a safe way of storing digital assets. A cryptocurrency hardware wallet points to a physical device that performs the function of maintaining the private key safely away from the eyes of criminals. They also provide users with simple access to their cryptocurrency. There are many hardware wallets available in the market, but the popular ones are Ledger, Trazor, and KeepKey. Your private keys are stored behind an impenetrable circuit. Another possibility would be to encrypt private keys in a zip file. This permits users to sign transactions by using a single click. This wallet also has a seed. It is a physical paper allowing the wallet users to relocate their keys to an alternative wallet in case the instrument gets stolen.

4. Keep away from using public Wi-Fi

Wi-Fi is responsible for diverting the browser to any page. It can be a mimic of your wallet or exchange. It allows the hackers to collect the data transmitters via that network in the event it carries the password typed by you. If you have to use public Wi-Fi for accessing your wallet, ensure that you are using a secure Virtual Private Network (VPN). This ensures that you are adding security and privacy to both the public and private networks such as Wi-Fi hotspots and the internet. VPNs are used by organizations for protecting sensitive data.

cryptocurrency safety Conclusion

There are many other measures you can take such as using tough passwords and maintaining your holdings private; however, the ones mentioned above are especially important. Cryptocurrency has become a popular business in the last few years. This rising popularity can be attributed as one of the main reasons for attracting the attention of several hackers. The cryptocurrency markets are getting more profitable every day and there is no need to panic. Keep these cryptocurrency safety tips in mind while dealing with the digital currency. It will not only allow you to become a crypto expert but also allow you to secure your cryptocurrency.