The Safest Way to Store Cryptocurrency

The Safest Way to Store Cryptocurrency

Jul 22, 2019, 6:17:16 PM Business

Safely Cryptocurrency Storing

$ 1.1B worth of cryptocurrency was lost in the first half of 2018. When you put that into perspective, it means $ 4,243.83 in cryptocurrency was carted away every second in that time of 2018. Could this mean that some of the best hardware wallets are losing their grip of safety? If the basic security measures were in place would most of the theft have been prevented?

Basic Security Measures

Even before the coming of cryptocurrencies like bitcoin, altcoin, and the likes, online scams have been in existence — but they have evolved pretty quickly over time. And the average blockchain user lacks basic knowledge as regards online security. Reports have it that online fraud is increasing, and the arrival of cryptocurrencies has aided the activities of fraudsters. But how do you keep your cryptocurrencies safe online? Another solution is that t he existing traditional financial issues (which is the sector that the crypto tech deals most) were not dealt with, more coins were introduced that brought platforms which could possibly overcome and fix various problems.

Keep your Device Safe and Secured

It doesn’t matter how complex your password is, if your device is compromised, hackers will find a way to get hold of your cryptocurrencies.

It is no magic—viruses don’t jump into your devices. Users unwittingly invite them. But they can be prevented by safe browsing and using a good antivirus.

 Another safety measure is to never enter private key or password on a device which is not 100% safe. Each time you navigate this route, your data and cryptocurrencies are put out there—without adequate protection.

Using two-factor Authentication

With regards to online security, two-factor authentication is your trusted friend. This is a way to add extra protection to an account or wallet when you want to access it or any other person for that matter. You can do this through a smartphone, which will generate a unique code every thirty seconds. You need both the password and a unique code to access your account.

The Best Alternative

There are two options when it comes to securing your cryptocurrencies like bitcoin and altcoin. You can either leave them in the hands of a third party or secured them via a platform that only you can access. Leaving your cryptocurrencies on crypto exchange platforms puts them at risk.

What is a Cryptocurrency Wallet?

 Call it a blockchain equivalent of a bank account that goes through software. Cryptocurrency wallets have become the way to go and much safer, allowing you to store currencies at ease. This wallet keeps a close eye on your public and private keys and stores them and also interacts with a range of blockchains.

 There are several wallets on the blockchain—and they come in different variants. One important thing is consistent—the inclusion of private keys. These are secret codes that enable you to use coins in transactions. Within your wallet, the private keys are well-secured and also stored there—on the platform that you choose and accessible to only you.

A Hot or Cold Wallet

Hot wallet enjoys connections to the internet at every point in time via mobile and computer software. You can access it from the cloud at all times. If you’re a regular cryptocurrency trader, you’d make the hot wallet your ideal storage method. However, you may be prone to the nefarious activities of hackers—that is one of the downsides.

Popular options:

•    Jaxx

•    Infinito Wallet

•    Exodus

Cold wallets are the direct opposite, and they’re situated on hardware (USB stick) and not connected to the internet. They provide a safe offline haven for your cryptocurrency assets. Receiving funds take place at any time—with nobody being able to transfer the fund.

Some of the best hardware wallets are:

  • Ledger Nano S
  • Trezor
  • KeepKey

With the right knowledge at your disposal, keeping your cryptocurrencies safe is a piece of cake.

Published by Edna Francis

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