Cryptocurrencies have changed our ways of doing business and making payments through wallets. For the very first time in the history of the modern man, you can have a bank in your pocket, on your smartphone and computer. The power and freedom Cryptocurrencies offers comes with greater responsibility. In banks and other traditional financial institutions, all you do is deposit and care less about the safety and security of your investments. With a Cryptocurrency wallet, you are totally and solely responsible for the safeguard of your investments.
You need not be scared; implement these proven security measures to stay on the safe side of the Cryptocurrency world.
Encryption secures your wallets with FBI level of security. With encryption in place by enabling the password using QT program, you are securing your wallets from malware and hackers. You can go a step further with encryption using AES algorithm software like VeraCrypt. Encryption can be on your desktop and also on the cloud.
Cold Storage Wallets
Regarded as the most secure method of protecting Cryptocurrencies. Cold storage is simple, you are securing your private keys away from the internet and your computer. Hackers or malware cannot infiltrate an offline source. Cold storage is best for long-term storage of Cryptocurrencies. Keep your private keys on printed papers, USB wallets, microSD cards, hardware wallets, CDs and other offline storage systems. Keep the storage device in a safe place, or a step higher by keeping in a safe deposit box.
Back Up For Wallets
Aside hackers or malware exploiting the loopholes in your computers and firewall, another danger is the loss of private keys. That’s where the need for multiple back-ups becomes relevant. Duplicate your private keys into multiple formats. In any event you lose a paper wallet, for instance, there will be a backup copy on a CD.
By utilizing multi-signature features of wallets through your partner, spouse or children, you are adding an extra layer of security to your investments. Multisig means multiple confirmations by the signatory to a wallet before any transaction is authorized. You can use BitSwap, BitGo, and Bitalo for Multi-signature.
When using online wallets, Two-Factor Authentication through Google Authenticator or Authy can help secure your Cryptos. Before any action can be implemented in your wallets, there will be a need to input a six-digit code provided by your 2FA application. Whenever your wallet is hacked, it will be impossible for the hacker to move out your coins.
- Create a separate email for your interaction with exchanges. If possible, create a separate email for your wallets. Never use a single email and passwords for all your wallets
- Use strong passwords for your wallets. Never use the same password for your wallet and email. It’s like handing over the key to the Crypto kingdom to hackers.
- When using desktop wallets, install only on a clean system. You can create a new user account and install the desktop wallet on it. Utilize similar modus operandi for smartphone wallets.
- When accessing online or web wallets, use a sandboxed browser. In the absence of a sandboxed browser, access your wallets in incognito mode.