Cryptocurrency continues to gain traction as more investors foray into the landscape due to the potential of the assets for a moonshot. Today, crypto trading is one of the best ways to make money online – short-term or long-term. But as the ecosystem thrives, it has become a beehive of scammers perpetrating different crypto scams to steal unsuspecting users’ funds, putting them at a grave loss. So whether you’re a beginner or an advanced investor, here are the tips to secure your crypto investments to stay safe.
1. Use A Secure Wallet
Choosing the right wallet is the first step in securing your investment, just as it is also crucial in your crypto journey. Wallets can be broadly grouped into cold and hot wallets.
Cold wallets are offline storage devices that provide higher security against online threats. So, they are suitable for holding large amounts of crypto in the long term. But they can only be helpful in making in/out transfers from/to another secondary wallet.
However, hot wallets, which are online and more accessible, are ideal for daily trading and transactions. Therefore, choose a secure crypto wallet that aligns with your investment strategy.
Meanwhile, you can use multiple crypto wallets to minimize the risk of having all your assets in a single wallet. This is to forestall the unwholesome event of losing all your assets to hacks or thefts.
2. Activate Two-Factor Authentication (2FA)
Two-factor authentication (2FA) adds an extra layer of security to your wallet by requiring both a password and a secondary verification method. This means that if someone tries to obtain your password, they will still need to access your second authentication factor.
Enabling 2FA on all accounts associated with your crypto assets, such as wallets, exchange platforms, and email accounts, helps protect against unauthorized access, even if your password is compromised.
3. Update Software Regularly
It is imperative to keep your wallet software, antivirus programs, and operating system updated. Hackers usually attack software with vulnerabilities to steal users’ funds.
Updates often include security patches that protect against new vulnerabilities. So ensure to keep your software up-to-date to mitigate the risk of being targeted by malicious actors.
4. Use Strong, Unique Passwords
A strong password is your first line of defense against hackers – which must be long, unique, and with a mix of letters, numbers, and symbols. So, you may need to avoid using details that can be easily guessed such as birthdays or common phrases.
Notably, hackers usually exploit passwords in two (2) ways – using a dictionary attack or a simple attack.
Dictionary attack involves hackers using lists of common passwords and patterns to try the most used combinations, reducing the number of possible sequences and increasing guesses. But in simple attacks, malicious entities try all the possible combinations, and the time and difficulty needed to guess the password.
5. Use VPN To Protect Your Traffic Data
A Virtual Private Network (VPN) encrypts your internet connection, masking your IP address and making it difficult for hackers to monitor your online activities. A VPN ensures that your data remains private and less vulnerable to interception when managing your cryptocurrency or transactions.
However, you must choose a reliable and reputable VPN provider with no hacking incidents.
6. Avoid Public WiFi
As a crypto user, you must always avoid using public WiFi. They are the most vulnerable networks to cyber-attacks and can compromise your crypto wallet security. Therefore, avoid accessing your crypto accounts or making transactions over public WiFi. That is a red line you should avoid crossing!
However, if you can not avoid using public WiFi, you must use a VPN to mask your IP address and add an extra layer of security to your connection, preventing hackers from tracking your activities
7. Choose Secure Trading Platforms
It is one thing to secure your crypto wallet and it’s another thing to trade your asset on a reliable and reputable trading platform. Therefore, you must choose a platform with robust security measures and regulatory compliance. Other features, such as insurance against theft and regular security audits, can provide additional layers of protection.
Looking for a secure trading platform to sell your cryptocurrency? Prestmit is the best place to sell Bitcoin and other crypto assets, including Ethereum, USDT, Litecoin, Dogecoin, Binance Coin, and TRON. The platform upholds security sophistication to make your trade safe and profitable.
8. Be Wary Of Phishing Scams
Phishing scams are attempts to trick you into disclosing vital information like your private keys or login details, posing as a legitimate entity. So, you must be cautious and restrain yourself from unsolicited emails, messages, or websites requesting your personal information.
As a crypto user, you must always double-check URLs and use bookmarks to access your crypto exchanges and wallet services.
9. Store Your Seed Phrase Offline In A Metal Card
Seed phrase is a series of words generated by your wallet to recover access. it is the only way to get access to cold wallets. So, it is critical to store the seed phrase offline to protect it from physical and digital threats.
Using a metal card offers a comprehensive solution, as it is resistant to fire and water damage. You must keep the card in a secure location to protect it from all threats.
10. Regularly Monitor Your Account(s)
It is better to be proactive with your crypto accounts than be reactive. So, similar to how you always monitor your bank account, you must regularly check your accounts to detect unauthorized transactions or suspicious activities. You can set up alerts for accesses and transactions to swiftly identify and respond to threats.
You must quickly change your password and block all IPs that have accessed your account if you notice suspicious access or activity from an unidentified IP address.
Frequently Asked Questions (FAQs) About Securing Your Crypto Investments
How Can I Secure My Crypto Investments?
You can secure your crypto investments by activating two-factor authentication to restrict unauthorized access to your account/wallet, secure your wallet, and use strong, complex passwords. Other tips are updating your software regularly, avoiding public WiFi, and trading on a reputable platform.
Is It Better To Store Crypto In A Wallet Or Exchange?
Choosing a wallet or exchange to store your crypto assets depends on your investment priorities. While a crypto wallet grants you full control over your private keys and funds, exchanges offer convenience, robust security features, and quick access to trading.
What Is The Importance Of Crypto Investment Security?
Security is germane to crypto investment. As cryptocurrency investment involves digital assets, they are always susceptible to cyber threats and attacks. So implementing security practices helps you to reduce the risk of hack and theft that put your funds at risk of loss.
Conclusion
Securing your crypto investments requires safety practices and the right tools. From securing your wallets to enabling two-factor authentication and updating your software, you can significantly reduce the risk of losing your digital assets.
Therefore, you must stay woke to prioritize safety and remain protected in the fast-changing crypto landscape.
