Bitcoin is the first cryptocurrency based on blockchain technology, and one of the most important promises that cryptocurrencies and blockchain-based applications make is security. Cryptocurrencies have been in existence for more than a decade, but in all these years, there have been many reports where traders and investors have lost their crypto savings, and there are multiple reasons behind this.
Just because cryptocurrencies are independent of government and banks, they provide complete authority and responsibility to users to manage their funds. From inappropriate key management, phishing scams to hacked exchanges, there are multiple ways in which hackers, or we can say bad actors, try to attack the crypto savings of users and steal them. For more information, you can visit http://blockchainjobz.com/
Users are their banks in the case of cryptocurrencies. However, this is an advantage but a disadvantage too, as if you lost your digital currencies, there isn’t any way to get them back. This is why it is extremely important to make sure your crypto holdings are safe by taking all possible security measures.
Crypto holdings are only as protected as your digital wallet.
Crypto users need to understand that blockchain and the bitcoin network are highly secure, and the only threat to their crypto holdings comes from crypto exchanges and digital wallets. Using digital wallets includes usage of the private key, and the information can be stored and tracked at the wallet, which can be accessed by scammers and hackers and provide them with a chance to steal your holdings.
Day by day, the competition between the wallets has been increasing because the crypto users have been increased in the past decade. This is why users need to be highly selective while choosing the digital wallet they want to use. Make it a habit or rule only to use digital wallets that are highly reputable and have good and proven records. Do research online, ask experts or ones who use digital wallets and make the right choice.
However, if you have chosen your digital wallet, there are few tips that you must opt to guarantee the protection of your crypto holdings. Let’s move forward and learn those security tips.
Never store all eggs in one basket: choose cold storage wallet.
The best practice that you can opt for when it comes to crypto investing is never to store all your cryptocurrencies in one wallet, even if you are using cold storage wallet. Make it a rule to use multiple digital wallets and diversify your savings in your wallet that the security of those holdings doesn’t get compromised. Almost all crypto experts recommend using cold storage wallets as these are not prone to cyber-attacks because of no connection to the internet. These wallets never compromise the security of their user.
Always carefully use PC and mobile wallet.
Many crypto wallets have mobile applications for mobile users, and this is why they attract hackers. If you are using a mobile wallet to store your crypto holdings, you need to make sure of these things that include:
- Avoid using public Wi-Fi as hackers always have prying eyes on those devices and can breach your data and crypto holdings.
- Always keep your operating system and wallet application updated, as, with every new update, the provider provides more security.
- Make sure to use the 2-Factor Authentication feature. With this feature, you can timely change the code and add a layer of security to your wallet. 2-Factor Authentication makes sure that no one can access or hack your wallet by making it impossible for any unknown user to log in.
Backup your wallet
Ensure that you store private keys of your digital wallet in offline mode always to protect them from hackers. Along with it, it is crucial to create a backup of your private keys and wallets. You should create a backup of your wallet at different locations to access them even if you are out of your home.
Be careful of phishing scams.
With each passing day, phishing scams are growing, and these scams compromise the security of your wallet and device in many ways. The scammers use your data from YouTube, Facebook, Google, and Google Play Store in phishing scams.