When you own cryptocurrency, one of the most important things to consider is how to store it. Cryptocurrency doesn’t have the same types of protection as money in a bank account or investments made through a broker. As the owner, crypto storage is your responsibility.
Here are some of the ways to secure your cryptocurrency:
1. Use a Cold Wallet
Unlike hot wallets, cold wallets do not connect to the internet therefore, they are not prone to cyberattacks. Storing your private keys in a cold wallet, also known as a hardware wallet, is the most viable option as these come encrypted, keeping your keys secure.
It is also recommended to use dedicated apps installed on old phones (Mobile crypto wallets are generally the same as desktop crypto wallets), like Terrastation for terra, cosmostation for cosmos based chains, metamask or argent for ethereum.
2. Open multiple accounts for different cryptocurrencies
A way of spreading risk rather than putting all your eggs in one basket, this strategy entails the usage of opening different accounts when you want to trade in different cryptocurrencies. For example, if you want to buy Terra and Ethereum, it’s a better idea to open two accounts on a secure platform so that even if one of them gets attacked or hacked into by any means, your other investment stays safe.
3. Enabling Two-Factor Authentication (2FA).
If your password is compromised, 2FA using your mobile device, authenticator app acts as a second level of protection. You need to use both your password and the 2FA method together when logging in.
General safety rules
- Giveaway ScamsOften you will come across some giveaways on most social media platforms by celebrities or highly followed social media accounts. Scammers have noticed this trend and have started to establish it.
To be on the safe side:
- Always be skeptical about crypto giveaways.
- You don’t have to send crypto for address verification. So don’t do it.
- When giveaways sound too good to be true, they probably are.
They are one of the main ways scammers will try to get away with your crypto. They will set up a phony website that looks very similar to legitimate websites. The branding, the domain, almost everything that legitimate websites have. With imposter websites like these, it’s nearly impossible for you to tell the difference only if you have a keen eye for details. // a way to tell is to check the ssl certificate to match the domain nam
Scammers, just like with the websites, will create convincing imposter emails. Emails are so much similar to the original. To avoid falling for these scams, always take a step further to confirm their legitimacy. And how do you do this? Look for anything suspicious about the email or directly reach out to a legitimate organization for inquiry.
The cryptocurrency industry is constantly evolving, and it is your sole responsibility to protect your digital funds by securing your wallet with essential safety precautions. Update yourself with the latest security news, attack techniques, and prevention strategies.