It is difficult for many people to get a good night’s sleep when they know their cryptocurrency might be stolen. Although it may seem difficult at first glance, storing your cryptocurrency safely is simpler than you think. You will learn how to safely store your cryptocurrency in this guide.
It takes completely different skills and knowledge to get and store cryptocurrency safely.
The Crypto Wallet – A basic understanding
Wallets are software programs that allow you to store public and private keys, receive and send digital currencies, monitor their balances, and interact with various blockchains. Managing and securing your crypto assets requires you to have a cryptocurrency wallet.
Cold and hot wallets are used by most cryptocurrency users. Cold wallets are more suitable for long-term holding, whereas hot wallets are more suitable for frequent trading.
Before we explore different wallets, let’s take a moment to review why it’s generally a bad idea to store your digital assets on an exchange.
Generally, you choose your wallet based on your portfolio. Almost all serious projects should have their own native wallet, which is typically available on their website, but sometimes a multicurrency wallet may be more convenient.
Remember that not all multi currency wallets support every coin. Many hardware wallets do not support every coin. On the other hand, popular cryptocurrencies such as Bitcoin have no shortage of a Bitcoin wallet.
Your private recovery seed phrase will also need to be protected once you get a (hardware) cryptocurrency wallet. CryptoTag, which stores seed words on titanium plates that are virtually indestructible, is one of the most reliable seed word security tools.
Stolen private keys: the best security practices
So The decision was made to keep all your crypto assets in a private wallet. Nice work! You have great power, but you also have great responsibility, so now it’s up to you to have a private and secure wallet.
You should take the following security steps:
- Exchanging cryptocurrency for long periods of time or longer than necessary is not recommended.
- Make sure two-factor authentication is activated.
- Use a hard-to-guess pin code for your hardware wallet and never publish your 24-word recovery sheet online.
- It’s a bad idea to publish your crypto holdings under your real name or identifying address. Crypto funds can still be stolen when they are kept in cold storage (offline).
- Verify all the information on your hardware wallet device and only trust the data displayed on the wallet screen.
- Your computer or smartphone screen may be compromised at any time, so always be cautious.
Also, follow the tips below to minimize the likelihood of losing your crypto.
Phishing sites should be avoided. Make sure you are logging into the right address, whether you are connecting to an exchange or online wallet. A good number of fraudulent websites imitate exchanges with the sole purpose of stealing login information. Verify the address of the website before accessing it.