Digital currencies are still pretty new, but the overall hype is enormous, and it is not for nothing. But with that hype and since there is a lot of money online, it is also a solid ground for hackers to perform attacks either via CPU power for crypto-mining operations or hacking directly into our wallet or exchange platforms. Fortunately, we can prevent mining attacks with the right tools and processes, but that leaves us with a question about wallets and trading platforms. And for that reason, here are 6 ways everyone can and should do to protect their crypto money:
1. Use Digital Wallets
The blockchain itself, its elements, cannot be falsified for the simple reason that the same record is located in several places, so it is pretty challenging to change that record everywhere in the world. If we keep in mind the fact that the attackers do not have the necessary information on where all that info is placed, the potential attack on our digital money gets even more complicated.
For these reasons, most cyber hacking is devoted to our digital wallets in which we store our cryptocurrencies. The question is how to secure our wallets and be sure that we will not lose our digital money. There are two basic types of wallets, software, and hardware.
Software wallets, despite their ease of use, are as reliable as the device we install them on. For those who use the Android operating system (most often used via mobile phones), a good thing to know is that the overall reliability of software wallets is relatively low. Hardware wallets are more secure, primarily because of the approach itself, which requires knowledge of a special Personal Identification Number (PIN code).On the other hand, the hardware wallet must be connected to the device from which we trade cryptocurrencies. What this means is that the attack cannot happen at a time when the hardware wallet is not connected, which increases the security of hardware wallets.
2. Remember or store the password
There is always a question what if we forget the password and cannot access the wallet? In that case, there is a so-called “Passphrase” which consists of several words known only to the owner of the account (us). If we forget the password to access the wallet, we can enter those words or a predetermined phrase that we entered when creating the wallet.
What about if we forget the phrase?
Well, if that happens, then even though there were several ways to recover our account, if we forget both password and the phrase, all the money is lost. Over several years there were thousands of this and similar situations, and today, by some estimation, there is a loss of more than 400K USD in bitcoin alone.
Because of all those reasons, a good thing to do is to write it in a file on a computer or phone, but separating them into different files and different devices. The other option is to do it “manually” – writhe the password and the phrase on a piece of paper, but also separate them into at least three parts (Sharing a secret system), where only you, and who else you choose will know.
3. Spread your investments out
This literally means that everyone who wants to keep their money safe should use several verified websites for exchanging and several wallets. That way, you will minimize the risk and reduce the impact on your budget if something goes wrong. Do not keep all your eggs in one basket. Yes, it will take more time to do all that, but it will be of great importance.
4. Invest smart
Everyone wants to earn as much as they can as fast as they can, and that would be great, but it does not work that way. It is crucial to invest smart, and by this, we mean that everyone should have small investments over several secure exchanges in order to earn the most. Try to avoid investing large amounts of money as you may find yourself vulnerable to hacker attacks, as you will attract unnecessary and unwanted attention, and everything will not go unseen (which is something we all want).
5. Avoid using public Wi-Fi
In a world where Wi-Fi is everywhere and since we use it for many purposes in everyday life, it is hard to avoid using it for dealing with cryptos, but it is something that we recommend. That is because when we use the public internet, it allows potential hackers to more easily log into our accounts, and there are three ways that they can do so:
- Wi-Fi sniffers
- Man in the middle
The good thing is that we can easily prevent all that by simply turning our Wi-Fi connection off. Wi-Fi dongle is an excellent tool that does not cost that much, is small, and allows us to have a safe internet connection wherever we go.
6. If you do not trade – do not leave crypto in exchange
Every trading expert will recommend that if you are not trading, there is no need to have cryptocurrency on the platform, even if someone thinks that their account is as secured as it gets because even the exchange platforms can get hacked.
This is beneficial because if you have money on some platform and the cyber attack happens, all the money they had (even your money) will get lost forever as none of them are insured. That is why it is always a much better and safer option that you keep an eye on your digital money and have complete control over it.
Although it may seem like a difficult or impossible thing to secure your digital investment, it is achievable, and everyone should do everything they can. One thing is for sure, by following these tips, the protection of your cryptos will become much easier. For those who still find this topic confusing or do not know when or how to start, start now, and for everything else, check cryptoengine.app, a website where you can find everything there is on cryptocurrency, along with some great tips on how to get the most of it.