Cryptocurrency security is a hot topic for many investors and regular users. The reason is that digital currencies can be used for everything from deposits to Vave to grocery shopping. Hundreds of thousands of Internet users, including hackers, are now interested in digital money. How to protect yourself and avoid losses? Follow some simple rules.
Use Different Passwords for Each Platform
Leakage of personal data from cryptocurrency platforms’ customers is common. Many users provide the same email and password for all their accounts, even those without two-factor authentication. In this case, if a user’s personal data is stolen from at least one platform, attackers can gain access to all their accounts at once.
Using different passwords is important to minimize the damage from a possible data breach. If a user has many accounts, free password management extensions and apps can be utilized.
Invest in Your Knowledge
Our knowledge and skills are our main investment that no one can take away. So, invest resources in yourself to be savvy from all angles when it comes to saving and growing your finances. Especially cryptocurrency, because in the current situation, it’s the safest money in the world!
In order for your investments in virtual currency to be successful, you need to understand the technical complexities and know how the blockchain and transactions work.
Use a Trusted Wallet Provider
Choose a safe, reliable and reputable cryptocurrency wallet. Avoid wallets that are unknown, unregulated or have negative reviews. Preferably use a cold wallet that is not connected to the internet and keep a backup of your wallet and private key in a safe place.
Activate Two-Factor Authentication
When creating a new account on a cryptocurrency platform, it’s important to enable two-factor authentication (2FA) if this option is available. 2FA implies that you need to confirm login from two different devices to access the account.
Two-factor authentication can involve receiving an SMS or code via email. However, the vast majority of cryptocurrency platforms ask the user to download an app that cryptographically communicates with the account on the platform and generates a random six-digit password that changes every 30-40 seconds. Major two-factor authentication apps that are widely compatible with cryptocurrency platforms:
- Google Authenticator.
To activate 2FA through the app, download it and go to the account settings on the cryptocurrency platform. Usually, 2FA activation is under the Privacy tab or something similar. Enable two-factor authentication, find the option to configure with a QR code, and select it.
Don’t Store Your Cryptocurrency Access Data Digitally
One of the biggest mistakes new and experienced cryptocurrency users make is storing wallet passwords, seed phrases, or backup codes on a digital device connected to the internet. This can be a screenshot of data stored on a laptop, a photo containing sensitive information on a smartphone, storing passwords in an email sent to yourself, a note with a seed phrase on your phone, etc.
There are various services that provide a solution to securely store sensitive information:
- It allows you to self-engrave your password or seed phrase on a plate that fits into a metal box.
- A metal plate for self-engraving a seed phrase to a wallet. At the customer’s request, the company removes personal data from the system after the order is shipped.
- Cryptosteel and Simbit. These are devices for offline storage of seed phrases, passwords, and other sensitive information. They come with engraved letters from which the user types the desired password or code and inserts it into the device.
Never Be in a Hurry
This is the most important rule. Scammers always hope for your greed. In the cryptocurrency industry, everyone wants to earn a lot and fast. Everyone knows the feeling of FOMO when you are worried that you thought long and, in the end, didn’t get the profit. And the next time you get such an opportunity, you act quickly and, without thinking, buy.
When you find out that you have won an allocation in IDO or that there is an opportunity to participate in a private sale, you have to act quickly because time is limited and the number of tokens is limited. This is usually where scammers catch us.