The cryptocurrency revolution is gathering pace. Today, more people are investing in cryptocurrencies like Bitcoin and Ethereum. Even top companies like Microsoft and AT&T now accept Bitcoin payments.
However, the industry still faces crypto hacking threats, leading to billions of dollars in yearly losses. Research published by Chain Analysis reveals that $1.7 billion in cryptos were stolen last year. Despite declining from the $3.7 billion stolen in 2022, that’s still a massive sum.
With those numbers in mind, taking proactive measures to protect your coins from theft is vital. Below, we’ll share some tips that can reduce the likelihood of losing your crypto assets.
1. Choose the Most Reliable Exchange
Any digital coin transaction is done on a crypto exchange. These online platforms allow crypto investors to buy and sell digital assets using fiat currencies. You’ll usually only need a verifiable email and phone number to set up an exchange account. It’s more like trusting someone to store your coins.
It’s important to store your cryptocurrency on the most reliable exchange platforms. You can achieve this by seeking recommendations from friends and family members who have invested in cryptos. The most reliable exchange platforms also subject investors to a robust KYC (Know Your Customer) process.
Other tips for choosing a secure crypto exchange include:
- Reliable customer support
- SSL encryption technology
- Regular reports on audits and trading volume
- High liquidity and trading volume
- Transparent fees and trading costs
2. Use Strong, Complex Passwords
A strong password is your first line of defence in a hacking attempt. So, create a complex and lengthy password for your exchange account. The best passwords should be at least 14 characters long and combine letters, numbers, and symbols. On top of that, avoid using the same password on different online accounts and change it regularly.
However, don’t be content with a strong password. The best exchanges provide two-factor authentication (2FA) using mobile apps like Google Authenticator and Authy. Activate this feature to add a secondary login verification. You’ll receive a unique code whenever you want to log into your account. This is an excellent protection even if your password is compromised.
3. Trade Cryptos on Secure Platforms
Cryptocurrency payments are increasingly accepted by online businesses. You can use cryptos to purchase goods and services online or even play casino games. With cryptocurrencies, players can now explore better ways to deposit and withdraw funds instantly. Top Interac online casinos in Canada are also joining the cryptocurrency trend by offering seamless and cost-free transactions to players seeking reliable payment options.
However, you should be careful where you exchange your cryptos. Using cryptos on a website without robust security features can expose your password and other account details to hackers and scammers. For this reason, research the reputation of the trading platform and confirm if the website is encrypted. For online gamers, ensure the website has a valid license.
- Protect Your Coins Using a Cold Wallet
Cryptocurrency wallets can either be hot or cold. You can connect hot wallets to the internet to conveniently send and receive digital coins. This makes them much easier to use for regular transactions. Cold wallets, on the other hand, are hardware storage. These wallets often resemble USB drives, with newer versions looking like smartphones. In short, it is physical storage for private keys.
Because cold wallets cannot be connected to the internet, they are not exposed to online hacks and attacks. You can only connect this hardware to your exchange account by physically plugging it into your computer. The only downside is that you could lose your digital assets if the hardware wallet is stolen. Fortunately, most cold wallets allow users to set key recovery phrases.
- Be Smart Out There
No one will tell you this practical solution to keep your cryptocurrencies secure. While having the proper crypto security tools is vital, vigilance is even more important when out in the wild. Remember that the responsibility of protecting your precious coins lies squarely on your feet. Therefore, don’t go about bragging to everyone about the stash of Bitcoin you have online.
Other street-wise crypto knowledge that investors must have include:
- Don’t share your wallet PIN with anyone, even if it’s a verified support agent.
- Learn how to identify hackers who pose as tech support agents for exchanges.
- Don’t invest your coins in a deal that seems too good.
- Avoid exchange platforms that require you to set up a test account on another platform.
- Don’t trade your cryptocurrencies using public Wi-Fi.
- Stay updated with the crypto industry trends and news.
Conclusion
With the tips above, you can securely protect your cryptocurrency and enjoy the financial freedom of using these coins. The most crucial point to note is that no one can steal your coins if you stay proactive and vigilant. Even a hot wallet is safe to use with the tips listed above. Stay safe, and keep trading!