Many can't get a good night's sleep because they know their
cryptocurrency might get stolen. However, storing your cryptocurrency safely is
easier than it might appear at first sight... This guide teaches you how to
store your cryptocurrency safely.
Getting cryptocurrency is one thing while storing it safely
requires entirely different skills and knowledge. This blog teaches you how to
protect your funds, choose the right wallet, and avoid the most common hazards
of crypto security.
Best Security Practices to Prevent Stolen Private Keys
So you decided to take control of your crypto assets and hold
everything in a private wallet. Well done! However, with great power comes
great responsibility, and now it all rests on your ability to remain secure and
keep your private keys private.
The most common security steps to take are:
- Do not keep cryptocurrency in exchange for a prolonged period or longer than necessary.
- Always enable the two-factor authentication (2FA) function.
- If you go for a hardware wallet, choose a pin code that is hard to guess, and never put your 24-word recovery sheet online.
- Do not boast of your crypto holdings publicly under your real name or identifiable address. Some burglars manage to steal crypto funds even if you keep them in cold (offline) storage.
- Trust only what you see on your hardware wallet screen and verify all the information on the device.
- Always assume that your devices can get compromised anytime, so always treat your computer or smartphone screen with caution.
Note: Wallets are mainly of two kinds - Hot and cold wallet
Tips to store crypto funds securely in wallets:
- A digital waller should be encrypted with a strong password.
- Mobile wallets should be frequently backed up, regularly updated, and have adequate antivirus security.
- A small amount should be stored in hot wallets and the rest should be transferred in offline mode or cold wallets.
- Save recovery phrases in a secure location that only you can access.
- Never share your crypto wallet's recovery phrase or private keys with anyone, and don't save them to your computer.
Most commonly used methods of storing cryptocurrencies in
real life:
- Web Wallet:
The private key is stored by a third party on a web server,
and it can be accessed via a website or app -- crypto exchanges like WazirX,
CoinDCX, and more leverage this method to store your holdings. Here, your
crypto exchange account password matters the most, and switching on 2FA
(two-factor authentication) is highly recommended. It can help thwart hacking
attempts, or in case the primary credentials are compromised in an attack.
- Desktop Wallet:
They are installable software available for PCs and work in
tandem with an anti-virus. That's done to prevent connection to the internet,
which could pose a risk. The private key is locally saved in a virtual layer. A
few examples are Exodus, Bitcoin core, and Electrum.
- Hardware Wallet:
These are similar to old PIN generating devices used by
conventional banks not long ago for 2FA. A small display and a USB port team up
to provide a portable stick to store private keys. They are available in
different forms and offer reasonable amounts of control. It's difficult for
amateurs to operate and is usually limited for professional or critical use.
To know more, contact us at: https://www.codezeros.com/contact
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