If you own any cryptocurrency, it's important to take steps to protect it from hackers and other bad actors. Here are four ways to do so.
Use Two-Factor Authentication for Exchanges, and Back Up Your 2FA App
If you keep your cryptocurrency in the custody of a cryptocurrency exchange, you should make certain that you are using two-factor authentication on the exchange website, ideally through an app like Google Authenticator, Microsoft Authenticator, or Authy. Make certain that you are backing up your two-factor apps as well, because the process with some exchanges is tedious if you want to change your two-factor authentication code after you lose a phone. Lastly, for the email that you use to log into the exchange, make certain that you use a unique, strong password for the email platform you use (for example, Gmail, Yahoo, Hotmail, etc.), because you do not want any bad actors trying to initiate password changes on your crypto exchange using the bad actor’s unauthorized access to your email account.
Invest in a Hardware Wallet
As the popularity of cryptocurrency grows, so does the need to protect your investment. One of the best ways to do this is by investing in a hardware wallet. While keeping your cryptocurrency in the custody of a cryptocurrency exchange may be easy, doing so puts you at a higher risk of theft compared to using hardware wallets. Hardware wallets are physical devices that store your private keys and allow you to sign transactions offline. They come in different shapes and sizes. Some look like flash drives; others are larger and resemble traditional metal or paper wallets. Some are even designed to have a finger or thumb passcode that must be entered before the device will sign transactions. Anyone who wants to store cryptocurrency for longer than a day should consider getting a hardware wallet. They generate, sign and store transactions offline, so they’re much safer than storing your cryptocurrency on a computer, mobile device or website. This makes them much more secure than keeping your keys on an exchange or online wallet.
Keep Your Recovery Phrase Secure
When it comes to keeping your cryptocurrency safe, one of the most important things to remember is to keep your recovery phrase secure. Your recovery phrase is like a Master key that can be used to access and spend your coins - so it's important that you don't let anyone else know what it is, or where you keep it stored. The best way to protect your recovery phrase is by storing it in a secure offline location, such as a safety deposit box or encrypted drive.
Avoid Phishing Scams on Social Media
Channels on Telegram and Whatsapp discussing cryptocurrency are filled with bad actors who attempt to get possession of your private wallet keys (aka your wallet recovery phrase). No matter what anyone tells you in a messaging app, or through email or websites, never disclose your private wallet keys to anyone, or else your crypto could be gone within minutes.
This entry was posted on
Tuesday, May 31, 2022
and is filed under
Resources & Self-Education, Internet Law News.