Due to their precious nature, cryptocurrencies attract cybercriminals, constantly devising new ways to exploit their vulnerabilities. Consequently, many people have lost their digital assets to these criminals and incurred significant losses. But if you are new to the crypto scene and have yet to learn the intricacies behind optimizing security, this article will help.
Let’s explore a few tips that can help you optimize the security of your crypto assets.
Backup Your Software Wallet
Software wallets are a ripe target for cybercriminals. But you don’t have to worry about that if you use proper security measures. You shouldn’t get too cocky, though—you might also lose your wallet after forgetting your wallet password. To prevent such scenarios from causing loss of funds, back up your software wallet.
If you use a software wallet like Coinbase, you can create a backup in Google Drive or iCloud. In other words, these wallets let you create a copy of vital information you can use to recover your wallet whenever you lose access. Most wallets allow you to back up the seed phrase and private keys. However, some products allow users to back up their wallet files.
Also, to avoid immense losses while trading or investing in crypto, consider diversifying your portfolio with forex pairs. They will help hedge against risk and mitigate risk exposure. But before you start investing in FX pairs, increase your odds of raking in juicy returns by first learning how to trade forex.
People with large amounts of crypto should strongly consider using hardware wallets. These offline storage solutions are impervious to hacking, phishing attacks, and other issues that often plague software wallets. They are also ideal for crypto enthusiasts who plan to hold certain coins and tokens for extended periods while waiting for prices to shoot through the roof.
The best thing about hardware wallets is that they have multi-currency support. You can use them to keep various crypto assets safe, including popular options like Solana, Ethereum, and the dominant Bitcoin. Plus, you can quickly receive and send crypto using a quality hardware wallet.
You should use numerous measures to optimize security using a software wallet like Coinbase or a crypto exchange platform. First, set a robust and unique password that no unauthorized personnel can guess. Ideally, it should have at least 16 characters and consist of a random combination of mixed-case letters, symbols, and numbers. Avoid using phrases like your mother’s maiden name or your favorite movie title as your password.
Most importantly, if the exchange or wallet supports it, activate 2FA. It will act as an additional security layer that will stop malicious entities from accessing your accounts, even after cracking your passwords.
Final Thoughts
You can secure your crypto assets by backing up your software wallet, adding a hardware wallet to the mix, and activating 2FA. Above all, prioritize buying crypto through reputable platforms. Check every site’s reputation on Trustpilot and other sites before risking any funds. Finally, research the associated risks before dipping your toes in the crypto pool.
