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Keep your cryptocurrency safe with this handy guide

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Keep your cryptocurrency safe with this handy guide

| Business News Today | Fox News


It is more than likely that you are as excited about cryptocurrencies as the world is currently. With Bitcoin at an all-time high and positive sentiment around cryptocurrencies in general, many of us are now more confident in digital currency than ever before.

While popular platforms like WazirX are safe enough to hold (or HODL) your funds for as long as you need them, it’s wise to know all you can about how to make sure you don’t get scammed or phished. when it comes to your hard-earned cryptocurrency. After all, according to the US Federal Trade Commission, at least 7,000 people lost more than $ 80 million to crypto scams between October 2020 and March 2021. That’s more than a 1,000% increase over last year.

With this in mind, we have created some of the best practices that you should follow when it comes to managing your cryptocurrency.

1 – Choose the best exchange

The first step in securing your cryptocurrency is knowing where it will be stored. You wouldn’t put your hard-earned money in a shady bank even if it promised the moon, would you? Similarly, take the time to research the exchange where you are most comfortable placing your money and cryptocurrencies. For such a scenario, it is better to choose the most popular cryptocurrency exchange that others already trust in the same space. In India, one such exchange to explore is definitely WazirX, which is trusted by millions of users and has the best-in-class security you should expect from a cryptocurrency exchange.

2 – Protect your private key

All cryptocurrencies are stored in digital wallets or on exchanges, the key of which is given to the owner in the form of an alphanumeric code. Do not allow, we repeat, that anyone has access to this key in any way. More importantly, do not store this key in any email or note-taking app, as they can also be hacked. Do not write it down on a sheet of paper and leave it where anyone can access it.

The best thing to do is to memorize your private key for your personal use. If that’s too much, keep it behind a firewall and a password-protected or fingerprint-enabled app of your choice that has a high trust factor.

3 – Open different accounts for different cryptocurrencies

One way of spreading risk rather than putting all your eggs in one basket, this strategy involves using the opening of different accounts when you want to trade in different cryptocurrencies. For example, if you want to buy Bitcoin and Ethereum, it is a better idea to open two accounts on a secure platform like WazirX so that even if one of them is attacked or hacked by any means, your other investment remains safe.

4 – Use cold wallets and hot wallets

When you start trading cryptocurrencies, you will inevitably use a cryptocurrency wallet, which is basically a software program that stores your public and private keys, interacts with various blockchains, and monitors your balance. There are two main types of wallets: hot and cold.

Hot wallets are connected to the internet and can be accessed at any time, while cold wallets store your funds offline. In general, it is a safer bet to use cold wallets if you are looking to build your fortune in cryptocurrencies over a longer period. Hot wallets, on the other hand, are used by those who indulge in frequent cryptocurrency trading.

Cold wallets are further divided into two popular types, paper wallets and hardware wallets, of which the latter is worth mentioning. Hardware wallets consist of third-party USB-enabled devices that store your keys in a cold, offline, and secure environment, giving you more control than active wallets. A simple search on electronic communications platforms for hardware wallets can steer you in the right direction, making it one of the best investments you can make to protect your cryptocurrencies.

5 – Suppose it will be the objective

One way to ensure that you are serious about the security of your cryptocurrency is to assume that hackers will attack you and take preventive corrective action. Whether it’s email phishing attacks, brute force attacks that can bypass 2-factor authentication, and more, hackers can use sophisticated measures to steal your cryptocurrency. The best way to prevent them is to keep your passwords safe and stay on top of any hacking related news to make sure your assets are safe by following any of the tips above.

While most exchanges have extensive security measures, this does not mean that cryptocurrencies are immune from hackers. Remember that lost or stolen cryptocurrency is practically impossible to recover. Make sure you get a good night’s sleep while your crypto assets are safe and secure by following the steps outlined here.

This is an associated post.


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Keep your cryptocurrency safe with this handy guide

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