Top 5 Tips on keeping your cryptocurrency secure
Cryptocurrencies are a major target for hackers because of the huge payout and the failure of many to properly secure their assets. Below I'll cover the 5 best ways to ensure your assets remain safe.
1. Do Not leave your assets on an exchange:
Many investors have lost all of their assets on exchanges that have either been hacked or shut down. Due to the unregulated nature of cryptocurrency an exchange can be shut down at any time, taking the assets with it.
2. Use a hardware wallet or Cold wallet:
The best way to secure your digital assets is by using a hardware wallet like TREZOR or the Ledger Nano S. Both of these external devices store your crypto and can only be accessed by your private key. Usually, theyll also have an initial pass code, enabling another layer of security.
Cold wallets are computer generated and can also only be accessed by private key, mnemonic phrase or upload from a hardware wallet. You can find these at myetherwallet.com.
3. Use 2 factor Authentication (2FA) when available:
This adds another layer of security to your wallets. Oncce you sign in you have to enter another code which is sent to you via text or personal email.
4. Back up your wallets:
Always keep your wallets backed up by writing down pass words and private keys and storing them somewhere safe. Also, keep an external device to back up your wallet keys and information like a USB.
5. Be careful when sending assets to different addresses:
This is essential seeing transactions are irreversible. Addresses can be very random and long so its easy for one to make a mistake somewhere in the line. Always double check your keys before sending. This problem will be alleviated with the release of the Ether Naming Service (ENS) which allows users to bid on a personal address. This will allow users to send assets to johndoe.eth instead of 0xhw3u54gku.... etc.