Cryptocurrencies are an exciting new way to store and trade your money, but they’re also extremely volatile. If you don’t take steps to secure your crypto, it could be stolen or hacked — even if you keep it in a secure wallet. It’s important to do everything possible to keep your crypto safe and secure so you can enjoy its benefits without worrying about losing it!
Know and understand the different types of wallets.
There are several different types of wallets, each with its pros and cons.
- Hardware wallets are physical devices that store your cryptocurrency offline on a piece of hardware. They’re secure because they never leave the device in which they’re stored, making it impossible for hackers to access them. The downside? They can be large and heavy—and require extra care when transported around town or taken on trips overseas.
- Software wallets use software to store your cryptocurrencies on computers connected to the internet (most often phones). This means there’s no need for any physical hardware at all! However, these programs aren’t password protected like hardware wallets are; anyone can access them remotely by simply logging into their account through an app or website interface. Software wallets also usually require less space than most other types because they don’t take up any real estate inside your computer’s hard drive (which is why many people prefer them). However this convenience comes at something called “security risk” because if someone hacks into one of these accounts then he/she could potentially steal everything inside without having any luck getting past security protections built into its design itself—they just need to know where those protections exist first before trying anything else!
Be proactive about your security.
It’s important to remember that the only way you can protect yourself is by being proactive. You can’t wait until your cryptocurrency is stolen and then contact the authorities, so it’s up to you to make sure that doesn’t happen.
The first thing you should do is update your operating system and apps regularly—this will prevent any exploits from getting into place in the first place. If there are updates available for Windows 10 or macOS Sierra, install them immediately so they’re ready when needed!
Next, back up all of your sensitive data onto external hard drives or other storage devices (like USB drives). Make sure those backups are encrypted with strong passwords before storing them anywhere else; otherwise anyone who sees them could gain access to all sorts of personal information about yourself! Finally: encrypting these backups helps ensure no one except those intended recipients has access at any given time.”
Avoid third-party wallet services.
There are a few things you should avoid when it comes to third-party wallet services. First, they’re not as secure as hardware wallets (which we’ll get into later). Second, even if the company itself does not go out of business or gets hacked, the private keys for your cryptocurrency could be compromised by a third party in some way—for example, if they were required by a law enforcement agencies or government authorities to hand over their private keys.
Thirdly and finally: most importantly—these companies do not have enough experience with cryptocurrency nor do they have any kind of background checks on employees before hiring them. This makes security more difficult because there is no guarantee that someone who works at one will know how to handle sensitive information properly!
Update everything all the time.
You should update everything all the time.
The best solution is to update your OS and apps, like antivirus software and browser. If you are using an older device, consider upgrading it with a new motherboard if possible. Update your router firmware as well as BIOS/UEFI firmware on any computer that has an integrated graphics card—this will ensure that everything runs smoothly when new coins enter circulation in the future (and avoid any issues caused by outdated software). Also, make sure that you’ve got up-to-date antivirus software installed on all devices connected to the internet; this can help protect against viruses which could lead to loss of funds due to theft or loss of private keys stored on hardware devices like laptops or smartphones etc., which would otherwise be inaccessible without proper backups! Finally remember not only do we need regular updates but also periodic checks too: check whether everything still works properly every few months at least once before doing anything drastic.”
Back up & encrypt everything you can.
Back-ups are important. They’re not just for computers and they shouldn’t be the only thing you protect. You should back up your wallet, private keys, and recovery seeds, as well as passwords to secure them all together in one place. This will help keep your cryptocurrency safe if something happens to your computer or phone so that no one can access it without your knowledge.
Always keep your private keys secure and confidential.
The private keys are the only way to access your cryptocurrency. They’re a long string of characters that look like this: “12345678901234567890”, and they’re never shared with anyone. When you create an address, it’s created from the private key, which means if someone gets your private key, they can take all of your money and use it for themselves!
Private keys should never be written down anywhere—they should only exist in memory or on paper (or maybe on one small piece of plastic). No one else must know where they are because if someone finds them out…well…then there’s no stopping them from taking over our wallets and eating us out of houses and homes!
Use a wallet that lets you control your private key.
A private key is a password to your cryptocurrency wallet and, if lost or stolen, can be used to access all of the cryptocurrency stored in that particular wallet. The public key is a unique identifier that everyone else has access to but you do not—it’s like a fingerprint for money.
If you need help managing your private keys, then we recommend using one of the most secure wallets available: paper wallets. Paper wallets are simply pieces of paper containing both your public and private keys printed on them (see picture above). You then keep these papers safe by storing them offline somewhere safe like at home or work with another person who knows where they’re kept. If this sounds daunting or confusing let us break down exactly how it works so anyone can follow along:
Use a hardware wallet if possible, too.
If you can, use a hardware wallet. These are physical devices that you can carry around with you and plug into your computer or phone. They’re generally small, so they don’t take up much space in your bag or pocket and they won’t be noticeable entirely unlike an app on your phone that could potentially get stolen or hacked if not protected by the same precautions as the rest of its operating system (e.g., passwords).
Hardware wallets also have several advantages over other types of cryptocurrency wallets:
- They’re not connected to the internet; this makes them more secure than online-connected wallets like Coinbase (which means they can’t be hacked), but also makes it harder for users who want access their funds when traveling abroad because most mobile devices don’t have internet connections available everywhere in the world at all times anyway!
- Hardware wallets don’t store any private keys stored on either device itself—this means no one else has access to these passwords except those who own them personally! This may sound obvious but there are still plenty out there who don’t know how important it is until after something bad happens.”
Consider using a multi-signature wallet for additional protection.
Multi-signature wallets are a great way to increase the security of your cryptocurrency. It requires multiple parties to sign off on transactions before they can be broadcast to the network, which makes it an additional layer of protection against hackers and thieves.
You can use multi-signature wallets by yourself or as part of a business structure, such as an LLC or corporation. You may also want to consider using them for family members who need access to funds but do not have their accounts yet (elderly parents who don’t trust banks).
Multi-signature wallets are useful because they allow different people within one organization (such as employees) to share control over their assets while still keeping them safe from predators looking for easy ways into new accounts without having any idea how much money is in there.”
Protect your crypto with these tips
For the most part, cryptocurrency is not as secure as you think. While there are some protections in place to make your crypto safer, they’re limited by the nature of the technology they’re built upon blockchain.
While many people believe that blockchain is impenetrable and cannot be hacked because it’s decentralized (meaning no one person can control it), this isn’t true at all—it just takes longer for hackers to find weaknesses in these networks than traditional ones like banks or stock exchanges do.
Cryptocurrencies aren’t insured by FDIC insurance like banks are; they’re also not backed by governments in any way whatsoever—which means if something goes wrong with your money or if someone steals from you directly due to a security breach on their end then there isn’t much recourse available beyond filing a police report or calling up customer support but even those options may not be enough for someone who has lost hundreds of thousands (or millions) worth of dollars worth of digital currency!
We hope these tips have helped you to better understand what it takes to keep your cryptocurrency safe and secure. We know this can be a difficult topic, but we feel confident that with the right combination of security measures, you’ll be able to protect yourself from hackers who want to steal your money!