Whether you are an investor or a trader in cryptocurrencies, there are several security measures you should take. Cryptocurrencies are in their infancy and have yet to gain mainstream adoption. Just like the internet, cryptocurrencies will grow with time and become more secure by design as well as through user experience (UX). In this article, we provide you with some security measures that you should take if you intend to invest or trade in cryptocurrency:
Backup your wallets
You should keep multiple backups of your wallet. It is better to store these backups offline so that they remain safe from cyber-attacks. Although a cryptocurrency exchange might be backed up by advanced firewalls and robust security systems, it’s still advisable to keep an offline backup of your crypto assets. Backup could mean physical paper copy or another cold storage medium like USB drive or CD/DVD. This prevents access by hackers and other cyber-criminals.
Only login from secure connections
It is advisable to only login into your exchanges and wallets from a secure network connection. If you are doing crypto business on an insecure connection, there’s a risk that the information could be captured by hackers or other cyber criminals. Take time to ensure the integrity of your account before making any transaction.
Verify every transaction
Before sending away cryptocurrency tokens, it is important that one checks for double-spends. One can also use blockchain explorers which speed up this process tremendously. Trading on safe platforms like thebitcoinsystem.io will enhance your security. You can even check through API keys and withdraw limits if necessary. These measures reduce the chances of getting scammed because they help to verify transactions before executing them in order to avoid double-spends attacks and other scams that might target your crypto wallets.
Check for malware and viruses
One of the easiest ways to lose all your cryptocurrency tokens is by having a computer infected with malware or a virus. The best way to avoid this from happening is by using updated anti-virus software, an anti-spyware, as well as keeping the operating system up to date and performing routine scans on the computer. The key here is making sure that you do not download files or apps from unverified sources (like emails).
Secure private keys
No matter how secure your cryptocurrency wallet might be if the private keys are stolen then it means that all crypto assets stored in that particular wallet will be lost. Therefore, it is important to keep them safe. One should therefore use cold storage while having hot storage as a backup option.
Store your cryptocurrency in a dedicated hardware wallet
One of the most important aspects that people ignore is to secure their cryptocurrencies by storing them on an external or internal hardware wallet. If you are using any exchange which is not providing you with an option to store your digital currency offline, then it is better to look out for another platform as losing your cryptocurrencies due to a cyber-attack can be very depressing and disastrous.
Using two-factor authentication (2FA)
Many exchanges and online wallets have started offering 2FA services for all transactions as a safety measure. It is strongly recommended to use 2FA in addition to two-step verification for logins. There should be a wallet backup option provided by the online wallets as well as exchange platforms. The backup option can help you store your coins offline and secure them against potential issues that can occur due to technical failure or cyber-attack.
Safety in crypto trading and investment is essential. It is advisable that one should not click on any unknown links while using online wallets or exchange platforms. It’s better to keep these sorts of activities at bay until and unless there is an urgent need or requirement involved.