One unfortunate reality of Cryptocurrency has been the sheer amount of hacks and scams that have led to some significant losses. It is every investor’s nightmare when they realise they have lost all access to their digital assets. This guide will help you to avoid that and set out the precautions every Crypto investor should follow.
An essential tool for any Cryptocurrency investor to utilise is a wallet. They are the most secure and reliable way to store your private keys. Web wallets and storing funds on an exchange should only be taken into consideration if your investment is relatively small. Larger investors should store their keys in hardware wallets. These are specialised pieces of equipment that store your private and public keys to keep your assets completely secure. It is essential to have physical access to this wallet at all times, and the storage of this physical wallet should remain in a safe location. You could even consider buying two hardware wallets for extra peace of mind as this allows you to store your digital assets across two separate devices. Always be sure to buy a hardware wallet directly from a supplier, as there have been many stories of third-party wallets being compromised.
Alongside your wallet, you will also need to secure your “seed phrase.” There are numerous stories online of people who have lost their funds due to incorrectly storing their seed phrase. This phrase is just 12 to 24 words; however, it plays an essential role at being able to access your funds. If this phrase is compromised, it means anyone can potentially access your funds, and if it is lost, it may mean you are locked out of access.
The most common wallet investors use is the Ledger Nano S (Direct | Affiliate Link). This is simple to use and is one of the lowest priced options available. There are also new wallets entering the market, offering a range of shapes, sizes and features. My favourite is the CoolWallet S (Direct | Affiliate Link). The same dimensions as a credit card, it fits into your wallet, but still offers the same features as the much larger sized wallets (and a few extras)
The Cryptocurrency world is rife with scams and hacks of exchanges. It is not always simple to steer clear from the threats due to how elaborate some of these scams have become. You should never click on any suspicious links that you receive in emails or online messaging chats. Just remember that the market is worth a lot of money which is why it is so attractive for potential scammers and hackers. The first essential step to make when registering on any exchange is to set up 2-factor authentication. This means that every time you log in, you will have to enter a code from an app like Google Authenticator (Direct), or that has been sent from a phone. This security measure ensures that only you can log in to your account and denies any potential hacker access to your account. It is also recommended to use a different email address to register on an exchange to one that you would usually use. It is essential to use a different password on any exchange that you use; you should also make sure your password is sufficiently strong by using a passphrase.
This advice may seem a tad precautious, but that is because it lists the most effective way of securing your Crypto funds. We have seen far too many stories of investors losing their funds due to insecure methods of storage. It is essential to value the security of your investment in the same manner that you value the investment itself. These extra steps will ensure that you can keep you Crypto funds securely. The golden rule is to store your digital assets securely on a personal wallet and never ever give your ‘private key’ to anybody. Hardware wallets do a fantastic job of protecting these details from hackers (and yourself sometimes!).