It’s highly likely that you’re as enthusiastic about cryptocurrency as the entire world. Because of Bitcoin reaching an unprecedented high and a positive sentiment about cryptocurrencies, most of us are more confident about the future of digital currencies than ever before.
Although popular platforms are safe enough to store (or keep) your money for as long as you require the funds, it’s essential to be aware of everything there is to know to make sure you aren’t tricked or fall victim to phishing scams when you’re dealing with money you’ve earned in cryptocurrency. According to the US Federal Trade Commission, more than 7,000 people were harmed by around $80m through cryptocurrency scams between March and October 2020. This is more than a 1,000% increase over the previous year.
We’ve compiled the most effective methods to adhere to when handling your currency with this regard in mind.
Select the most suitable exchange
The first step to securing your cryptocurrency is knowing where it’s stored. It’s not wise to put your hard-earned cash in an untrustworthy bank even though it claims to be the moon, would you? Also, make sure to study the exchange you are most comfortable placing your cash and crypto in. In such a case, it’s best to pick the most well-known cryptocurrency exchange that’s recognized by other users within the same industry. Ensure the exchange also allows for easy conversion of BTC to INR or any other cryptocurrency to a fiat currency of choice.
Protect your private keys
The majority of cryptocurrency are stored on exchanges or digital wallets, the key to which is handed over to an owner by way of an alphabetic code. Don’t, reiterate, don’t allow anyone to access the key in any way. Additionally, don’t keep this key in any note-taking application or email that can be hacked as well. Do not record it on paper and put it somewhere it could be read by anyone.
The most effective and viable thing to do is keep a copy of your private key for private use. If you’re not sure, keep it in a firewall, password-protected space, or use a fingerprint-enabled program you prefer with an extremely high trust factor.
Make use of cold wallets and hot wallets
If you decide to trade in cryptocurrency, you’ll need to utilize a cryptocurrency wallet, a software application that securely stores your private and public keys, communicates with different blockchains, and tracks your balance. There are primarily two kinds of popular wallets: cold and hot.
Hot wallets can be connected to the internet and can be used at any time, while cold wallets keep your money offline. In general, it’s a better choice to use cold wallets when you want to earn a fortune with cryptocurrency over a prolonged period. However, hot wallets are preferred by those who engage in regular cryptocurrency trading. So if you’re someone who regularly trades and converts cryptocurrency like TRX to INR or other, hot wallets might be for you.
Cold wallets can be further classified into two types: paper wallets and physical wallets, and the latter deserves to be mentioned. Hardware wallets are third-party USB-enabled devices that store your keys in a cold, secured, and offline environment. They offer greater control over hot wallets. A quick search online on eCommerce platforms for hardware wallets will guide you in the correct direction, making it one of the most beneficial options to safeguard your cryptocurrency.
Assume that you are targeted
One way to ensure that you take your crypto security seriously is to imagine that you could be attacked by hackers and adopt remedial measures in advance. Hackers could easily employ sophisticated methods to get your money. It doesn’t matter if it’s email phishing or brute force attacks that could bypass 2-factor authentication and many more. The best method to avoid attacks is to ensure that you ensure your keys are safe. Keep track of the latest news regarding hacking. You can be sure that your assets are protected by adhering to any of the above suggestions.
Although most exchanges have a good amount of security measures in place, it doesn’t mean that cryptocurrency is invincible to hackers. Be aware that a stolen or lost cryptocurrency is almost impossible to recover. Make sure you have a good night’s rest knowing that your cryptocurrency assets are secure and protected by following the guidelines in this article.