Right after you’ve purchased a tidy amount of crypto currencies and tokens, protecting your virtual investment should be your number one priority.
First off, verification and recording of all transactions are distributed into various computers in a block chain. This block chain system is impossible to edit once it has been verified and confirmed.
That being said, the government has no part in maintaining or storing cryptos which means that the responsibility of securing your access keys, email, phone, and computers is entirely up to you. With that in mind, here are 5 steps necessary to secure your investment.
With the crypto boom still going on, it is natural to jump into the crypto bandwagon for fear of being left behind. But, buying coins for no other reason except that it’s a good idea is not likely to work in the long run.
Educate yourself before jumping into the crypto markets media hype or buying into startups that exaggerate returns claims. The right information will shed light on what you stand to lose or gain from a trade and the risk involved.
On the other hand, mining Bitcoin, Ethereum or other altcoins has next to nil returns because of the huge computing power required making individual ventures unrealistic.
Long passwords have been known to be harder to guess than short ones; ideally, your password should be 20 characters or more, with a mixture of misspelled letters and capitals e.g. “Pas$worD”
Encrypt the folder or text file that contains your access key. Alternatively, store your password in a secure password-manager that will always make it available whenever you need it. You can use a password manager (free and open source).
Hot online wallets may work on small transfers between addresses but, storing your entire balance in one service makes it susceptible to fraud and hacking attempts. The solution is to use hardware wallets referred to as ‘cold storage’ for each transaction. In addition, engage only established exchanges and avoid startups that promise lower fees to attract clients.
Publicly available wifi’s in coffee shops, hotels and stores are literally hackers’ paradise because they allow easy interception of private online data. Therefore, whenever you use public wifi employ a virtual private network (VPN) that prevents interception; hide’s your location, identity and IP address allowing you a higher degree of safety from hackers. You can see here the most typical scams.
As soon as you make it public in your social media feeds that you trade in crypto’s, you have become a target for hackers. With this in mind, use an email that has never been publicly shared or associated with you for all your virtual currency transitions.
With the above precautions in hand, don’t allow someone else to hold your crypto or continue living in fear of losing your precious coin investment, secure it and stay safe.