In the world of cryptocurrency, security is key. You can lose all your funds if you don’t protect them properly. Here are 5 tips for securing your crypto:
Use a hardware or paper wallet
- Use a hardware or paper wallet. This is the most secure way to store your crypto and it’s also the simplest.
- Don’t use an exchange wallet. You should never store your seed phrase in an exchange, as they are not trustworthy enough to keep it safe from hackers.
- Don’t store your seed phrase on your computer (or any other device). If you want to be extra sure that no one can access this information and steal your coins, then don’t write down anything on paper or save it anywhere online!
Do not reuse addresses
Reusing an address is a security risk. If you use the same address for multiple transactions, it can lead to your funds being stolen. The same goes for not checking if the transaction has already been completed on the blockchain before sending money from one account to another.
Reusing an address will cause confusion and make it harder for you to track what’s happening with your crypto assets because there are multiple addresses associated with each wallet or exchange account (for example: 1-1/2 BTC).
Don’t leave your funds on an exchange
If you leave your funds on an exchange, you risk losing them to hackers. And if you don’t have access to your private key and passphrase—the two things that allow users to regain control of their coins—then any hacker who gains access can take over the account and sell off all of its assets.
That’s why it’s important to keep your funds safe in a wallet where no one else has access but yourself:
- An offline computer (such as a laptop) or mobile device with internet capability only
- A paper wallet printed with these instructions
Always have multiple backups of your seed phrase
As you can imagine, having only one backup of your seed phrase is a mistake. It’s just as important to have two or three backups in different places, so that if one gets lost or damaged you’ll still be able to recover access to your crypto. Don’t rely on just one thing; make sure there are backups stored in other locations and formats that can be accessed easily when needed.
Don’t put them all on your computer: If someone gets into your home or office and steals all the computers and mobile phones there are no guarantees that they won’t find where the backups are kept (and if they do how long will it take for those devices to get back online). The same goes for storing them on cloud storage services like Dropbox or Google Drive—those platforms have been hacked many times over by hackers who want sensitive information about their users’ financial lives like passwords, email addresses and personal photos/videos.
Do your own research
When it comes to crypto, you don’t want to be like the guy who paid $30 for an ICO and then lost his entire investment when the project failed. Instead of blindly trusting someone else or a random website, do your own research by reading reviews from other people who have already been through this process and know what they’re talking about.
You should also consider asking questions like:
- What are their goals? Why are they creating this project? What kind of support do you get from them if something goes wrong in the future?
- Who is behind this company/team/project (e.g., CEO name/title)? Has anyone ever worked with them before? How many employees does each person have – even if they don’t work directly on development projects themselves but instead handle marketing efforts etcetera).
Security is key when it comes to crypto
- Don’t store your crypto on an exchange.
- Don’t use a single wallet.
- If you have multiple wallets (for different currencies), make sure to keep track of which one contains funds for which currency.
- Do not reuse addresses; each address should be treated as unique and never reused without doing some research into the history of that particular address or accounts associated with it (e.g., see if there are any previous transactions).
If possible, back up your seed phrase so that if something happens to the device where this information is stored—it can still be recovered using its corresponding private key! This way if someone steals your phone or computer they won’t have access unless they know how many digits there are in said private key(s). Also note that most cryptos like Bitcoin require more than one passphrase/keypair combination before sending out any funds from an account; so even though we’re talking about just two here…
Crypto is all the rage right now and it’s never been easier to get started. With more options than ever, there are many ways to store your cryptocurrency, but if you want to keep your coins secure, then using a hardware or paper wallet is one way to go. Keep in mind that every time you transfer funds from an exchange or website, they’re vulnerable to hacking attacks so always make sure that both ends of any transaction are secure before sending money anywhere!