Cryptocurrency is a decentralized currency that significantly impacts the financial market because of what it is offering. Soon after its launch, cryptocurrency became a considerable part of the financial market in a brief period, and people have started to invest their life savings in cryptocurrency.
Despite security being one of the major selling points of cryptocurrency, it is still a relatively new technology and has multiple security flaws. In this article, we will give you a few tips on keeping your crypto holding safe.
Even though cryptocurrencies are highly secure, there still are some potential security risks involved. But these cryptocurrency security risks can easily be minimized with some precaution. Given below are some tips that you can use to keep your crypto holdings safe.
1. Hardware Wallet or Paper Wallet
Even though nothing wrong with a digital crypto wallet, they are still vulnerable to cybersecurity risks because of being completely digital. One of the ways to ultimately minimize the cybersecurity risks is by using paper crypto wallets or hardware crypto wallets.
A paper wallet is a piece of paper with the crypto address and the private key of your wallet, printed out as QR codes generated through paper wallet websites. Paper wallets make your crypto wallet completely immune to online hacking attacks.
A hardware wallet can be used to increase cryptocurrency security by storing your crypto holdings on a physical hard drive or a USB. This increases the level of security of your wallet by keeping it offline.
2. Multiple Authentications to Access
If you are using an online crypto wallet, one way of increasing the security of your wallet is to use multiple authentications to access your crypto wallets. 2FA or Two-Factor Authentication is an excellent technique of securing your wallet by having the system send you an additional password request through your phone or email every time you try to access your account.
This prevents hackers from immediately accessing your crypto wallet and increases cryptocurrency security.
3. Use of Secure Internet
While trading or accessing your wallet, you should ensure that the internet you are using is secure, and you should refrain from using public internet networks. Even when you are using your home internet connection, using a VPN is an excellent choice as it adds another layer of security, which will protect you from being tracked.
4. Be Aware of Phishing
Don’t fall for phishing scams via email or malicious ads. Refrain from opening suspicious or unknown links. If you receive an email that sounds like “You just won a crypto contest. Send us your crypto wallet details and we will transfer your reward, ” it is a good choice to stay far away from it and not send them your account details.
5. Using Multiple Wallets
Since there is no restriction on how many wallets an individual can make, you should diversify your crypto holdings by keeping them in multiple wallets. Having multiple wallets can help alleviate the loss in case of a security breach on one of your crypto wallets.
Above given are some tips and tricks that you can use to increase the security of your crypto holdings and have a smooth crypto experience.