Buying cryptocurrencies is only the first step of the process and there are several other steps to take in order to keep them secure. The security of cryptocurrencies depends on private keys, securing wallet addresses, digital signatures and this is the way to ensure that your assets and transaction data stays safe.
While there are several steps in the process, it is helpful to familiarize yourself with the most important security features.
Keep your private key safe
Private keys are 64-character long codes that includes any blend of the letters A-F and the numbers 1–9. This code is what you need to access your wallet and it must be stored securely.
Most users take a screenshot of their keys and there is no assurance that you don’t lose it this way. The best way to keep them safe is to write them down on a piece of paper and store them securely within a desk or your bedside table.
Use the best wallet for storing cryptocurrencies
It is advisable to use the best wallets available in the market for storing cryptocurrencies. The most secure wallets have features like passphrase, PIN code feature, and 2-FA authentication features too. Additional security features are the most preferred in a wallet and there are a few key points to look for –
- Ease of use
- Development Community
- Backup & Security
- Compatibility
Keep Backup of PIN Code, Passphrase and username
Some wallets provide these features and maintaining a backup for each one of these is recommended. This way you have a backup in case you lose access to your wallet.
Use antivirus and anti-malware on your desktop computer or laptop
The device that you use for trading could be compromised by a virus and this would lead to a loss of your password and private keys.
Check the URL twice and bookmark your web wallets
Phishing is a very common practice and has led to loss of funds for most crypto traders. Top exchanges make users aware of this practice and it is recommended to check the URL twice and bookmark your commonly used wallets and exchanges.
Following these guidelines will ensure that your digital assets remain secure. Storing your assets on a cryptocurrency exchanges could make them an easy target to loss by hack/ theft. Exchange wallets are targets for hackers and even top exchanges like Binance have suffered major security breaches in the recent past. Only hold what you trade on an exchange and store the rest of your digital assets in a hardware wallet, following the guidelines shared here to ensure that you keep them secure.
