Your company is only as strong as the weakest link. People are dubbed to be the weakest link when it comes to security. Hackers are waiting for an opportunity to get inside your system and wreak havoc into it. Evidently, one small mistake, an accident, or a slip can be catastrophic in terms of blockchain technology and cryptocurrencies.
Trading or investing in cryptocurrency takes knowledge and skill. You also have to take full responsibility for your own digital money because no one else will do that for you. Sure cyrptocurrencies exist in a decentralized system which means there are no middlemen or banks in between transactions – the power is in the community itself or in your hands.
If you forget your passwords, there’s nobody to reset it for you. There is also no way to dispute faulty transactions. This is the security that comes with the regular investment or banking route – with middlemen and all.
So, with all of these facts and considerations in mind, how do you keep your cryptocurrency safe? Here’s how the experts do it:
- Use a cold or hardware wallet for storing cryptocurrencies. The use of the cold wallet keeps your cryptocurrencies stored in an offline wallet which inhibits or blocks any unauthorized attempts to access it. This core wallet is crucial to your buy and hold strategy. This makes use of a USB stick or an old laptop. This should be created on an offline device that is not connected to the internet. These hardware wallets are created and maintained offline so you do not need to generate any keys or connect to the internet for installation. This is said to be safer and more convenient than using software wallets because it’s simple and secure which offers multiple layers of protection for users. This is however good only for storage purposes but you will eventually have to go online and move it to a software wallet for your financial transactions.
- Don’t leave your coins in exchanges. Many people lost their cyrptocurrencies by just leaving them or storing them in exchanges as these are prone to hacking and can also shut down after some time mainly because of the unregulated nature of digital currencies.
- Make sure that you have the right wallet address when sending coins. Sending cryptocurrencies to the wrong address is irreversible so make sure that you have the right address especially if you are going to send large amounts. Don’t send everything all at once. So, what you do is to send a small amount and if that goes through in the correct address then that’s the time you proceed to move the rest of the digital tokens to.
- Protect your email. Around 90% of hacking attempts are conducted by accessing your email or by recovering your password. You should always change your passwords at least once a month and use unique passwords. You can also protect your email by using a multi-factor authentication so you can bypass hacker attacks on your email and digital wallets.
With cryptocurrencies, you are your own bank. You have the sole power and control over it or a community if you exist in a blockchain. Keeping your assets safe though is challenging in a decentralized system especially if you don’t have any backup with storing your digital cash. The above points will help you keep your cryptocurrency safe and your transactions protected from attackers in the cyberspace.