Cryptocurrency theft hits an all-time high of 1.7 billion dollars in 2018 alone! Let that sink in first.
Every day, there are reports of exchanges and hodlers losing their money and investment to hackers, scammers, and even private keys guessers.
The trend has continued into 2019. This year, CoinCheck, a cryptocurrency exchange out of Japan, lost $530 million to hackers. This heist, is the single biggest in the history of cryptocurrency.
Should the hacks and thefts going on in the cryptocurrency world deter you from buying and hodling coins?
No! Cryptocurrencies are still some of the most secured investment in the world.
Nevertheless, if you already hold Bitcoin, Ethereum, or any other coin, there is every need for you to take additional security measures to protect your investment. This post will teach you ways to secure your investment in cryptocurrency.
Cold storage is a MUST
One thing made the CoinCheck hack spectacular. It happened to a hot wallet: meaning the wallet was digital and connected to the internet. Therefore, it was easy for hackers to breach CoinCheck security protocols to steal more than half a billion dollars.
To better protect your coins, stay away from hot wallets. The better option is a cold wallet, otherwise called cold storage.
Cold storage is an offline, physical storage mechanism for cryptocurrencies and other crypto assets. With cold wallets, your coins are safely kept on a USB drive, paper wallet, physical Bitcoin, and a deposit box, without an internet connection, and away from hackers.
Cold storage is, so far, safer than hot wallet because hackers cannot access it. However, you must handle it with care as it can go missing, get stolen, or damaged.
Two-factor authentication is a big advantage
Two-factor authentication came as a result of the fact that cold storage wallets are not entirely safe. So, it is another layer of security for the protection of your hot wallet or digital, exchange wallet.
By activating two-factor authentication (2FA), you automatically receive emails and SMS, or secret codes to confirm any access, transaction, alteration, or withdrawal from your cryptocurrency wallet. Two-factor authentication adds extra protection to your hot wallet.
Careful with third-party access
It is tempting to want to tell those close to you about your cryptocurrency wallet. Maybe even access your wallet in front of them, exposing your private keys or password in that process.
If you do this, it is risky. Many people have lost millions through indiscretion with their private keys and password. Trust your friends and family but it is not enough to reveal information about your wallet to them.
Likewise, before buying your coins, ensure you trust the vendor and exchange platform. Many dubious vendors and exchanges are out there masquerading as authentic and defrauding unsuspecting people.
Strong password combination
For ease of recollection, many people like to use simple, easy to remember passwords for their wallet. Some even use their names and dates of birth. It is dangerous if you do so.
Passwords with a combination of letters, numbers, and special characters are difficult to guess and breakthrough. For this reason, use a random password generator. Yes, it might be difficult to memorize but it will save you thousands in case of a security breach.
No human system is perfect. There are criminally-minded individuals who are expert in breaking security systems to harm others. That is why it is instructive that you take extra care to protect your cryptocurrencies and crypto assets.
Use cold storage. Activate two-factor authentication. Do not broadcast your private keys and passwords. Trust your vendor and exchanges. Use a random password generator and be careful with those you allow access to your computer. The most thing is to protect your money at all cost.