In this week’s blog we are sharing with you 5 ways to keep your cryptocurrency safe and secure in 2022!
INTERNET & PASSWORD SAFETY
First things first, don’t log into your wallets on friends or public computers! It’s best to access anything related to your own cryptocurrency from the safety of your own home: using your own internet and computer.
You also need to make sure that the passwords you are using for any of your cryptocurrency accounts are strong. Just take a look at the below infographic that outlines how fast hackers can write a script to brute force your password! As you can see, the higher the number along with a mix of numbers, upper and lowercase letters & symbols the harder it is to hack.
The most common way people lose access to their cryptocurrency is through phishing, and unfortunately, hackers are becoming more sophisticated in their phishing attempts. They usually hack databases of companies in order to gain customer information. They then use this information to send out phishing attempts, usually via email. To avoid falling victim to these phishing attempts, we recommend you verify the web URLs and email addresses of any emails you receive in relation to your cryptocurrency accounts. Look out for unusual spelling and accents within the names. Another good practice to get in the habit of is bookmarking verified sites that you normally need to input sensitive information, and only access them via that bookmarked link. It’s also incredibly important to NOT click on any links or attachments that you don’t recognise as authentic.
DOUBLE-CHECK EVERYTHING BEFORE SENDING CRYPTO
Crypto transactions are basically irreversible so if you send money to the wrong address, you can’t get those funds back (unless the recipient is kind enough to trace your wallet address and refund you - not likely!). For this reason, we recommend verifying that everything is correct, whether you are sending small or large amounts.
SEED PHRASE STORAGE
If your hardware wallet breaks, is stolen or misplaced, your recovery phrase can be used to restore your assets. But if your recovery phrase is stolen or misplaced, there is no bank or institution to back you up or give you a replacement. And because of the secure nature and random mathematical sequences used to generate the private key, there’s no way you or anyone else can recover it, so you will lose access to your cryptocurrency. In other words, make sure you keep your recovery phrase safe and secure at all times!
The best way to do this is to:
- Never share your recovery phrase with anyone
- Never store your recovery phrase on a computer or smartphone
- Never store your recovery phrase online, where it can be easily hacked
- Never rely on your memory alone to remember your recovery phrase
- Store your recovery phrase on a device such as the Billfodl, that is virtually indestructible
- If you ever have to restore your wallets/accounts, only enter the recovery phrase into the physical device
BUY A COLD STORAGE HARDWARE WALLET
Online digital wallets, or “hot wallets”, whether provided by a crypto exchange or a third party, all require internet access. They are considered the most vulnerable wallets in the world as they store your security keys and codes in an online environment.
That's where cold storage hardware wallets come in! Cold Storage hardware wallets, allow you to move your assets offline AND keep ownership of your private key. Your private keys are generated and stored on the hardware wallet which is then protected by a PIN and an optional passphrase. The keys are never exposed to the internet so they can’t be stolen or copied. That’s why it’s known as cold storage.
While some of these best practices may require you to put in a little extra effort to secure your crypto wallet, it’s well worth it. Here at Coinstop, we remain committed to providing you with the latest in crypto security, so you can ensure your assets are safe. To visit our store, head here.