Tips for Securing Your Cryptocurrency Investments

Did you know that protecting your crypto wallet with two-factor authentication is essential to increasing cyber risks? The cybercrime incident as reported by CipherTrace was $4.5 billion in cash in 2019, with highlights of online hacks, theft and fraudulent activities in the cryptocurrency industry. As a result, with major trading platforms and websites reportedly falling victim to major security breaches and phishing attacks targeting cryptocurrency users, securing your digital assets has never been more critical.

With the cryptocurrency market growing rapidly and attracting a larger number of users, cybercriminals are becoming more professional and resourceful in their approaches. From phishing emails and malware to instances where cybercriminals can take your money, there is always a threat. So, the best way to protect your investments in the crypto universe is to pay close attention to security issues. For this reason, you must take proactive measures at all times.

10 Strategies to Protect Your Crypto Investments

Secure your cryptocurrency investments with these great tips.

Two-factor authentication

Another type of 2FA security is an extra layer of protection that your cryptocurrency accounts get when you receive a code on your mobile device. It will then be sent to your mobile device for your security. 2FA (Two Factor Authentication) is a must in every cryptocurrency exchange account and wallet you have to keep your funds away from such threats. Through a combination of password and OTP, 2FA (two-factor authentication) provides a deterrent to hackers and cybercriminals by adding additional barriers to unauthorized access.

Use hardware wallets

Hardware wallets are currently considered the safest way to store cryptocurrencies. These particular physical devices store your private keys locally and therefore cannot be hacked by hackers. What attracts investors to hardware wallets like Ledger Nano S and Trezor are their excellent security features. It is highly recommended to keep your crypto for long term use. By keeping private keys offline, hardware wallets keep your money safe from cyber attacks. No worries because your crypto assets stay safe with hardware wallets.

Keep software updated

Maintaining an updated software version is the backbone in developing strong cyber security for your cryptocurrency assets. The outdated software already on the devices can be the perfect method for hackers to breach the security and get into devices. Be sure to install the most recent versions of the security patches and updates for your operating system, wallets, and other applications so that you can reduce the chance of being exploited.

Use strong passwords

Having strong, unique passwords is the fundamental factor with which you can protect your cryptocurrency accounts. Try not to choose predictable passwords and you may even want to make a point of creating and saving strong combinations of letters, numbers and special characters for each of your accounts with the help of a password manager. Stronger passwords complement all the layers of security around your accounts, thus stopping unauthorized access.

Be wary of phishing attempts

One of the most common cybercriminal activities is phishing where scammers try to trick people into revealing login credentials or private keys for cryptocurrencies. Be alert for e-mails, messages and websites that you have not been invited to, and do not click on links or download files from unknown senders. However, always be wary of phishing tactics so you can protect your assets.

Diversify your investments

Diversifying your crypto portfolio by investing in multiple cryptocurrencies stored on multiple wallets and exchanges is an effective risk management tool and can help minimize potential damage. If you spread your investment across several securities, you reduce the chance of taking a big hit if you default on one or two of them. This, on the other hand, ensures that the platforms you use are from reputable firms with robust security mechanisms. Diversification plays a crucial role for a crypto investor in a highly volatile environment. You can use an automated trading bot, Bitcoin Buyer, to trade a variety of cryptocurrencies and diversify your crypto portfolio.

Enable email and account notifications

Among the available services of cryptocurrency exchanges and wallets, some of the features are email or account notifications. Examples are login attempts, withdrawal and account changes that are important for security. By enabling this feature, you may be able to prevent property loss and even save lives. Regularly checking and observing your accounts can help with early detection and prevention of unauthorized access.

Secure your private keys

Your private keys are the most important thing to keep in mind while accessing your crypto wallets and overall your savings in the digital economy. Always make sure to keep it in a safe place and do not reveal it to anyone else. It can be useful to choose a hardware wallet or an encrypted device (storage) for safe keeping of the private keys. Keeping your private keys allows you to stay in control of your crypto investments.

Consider cold storage

Try cold storage techniques for long-term investments, especially if you have significant bitcoin holdings. Offline wallets, especially in the form of cold storage, keep your private keys away from the prying fingers of hackers, as any hacking attempt would be impossible because all the data is stored offline. For larger amounts of cryptocurrency for long-term storage, using hardware wallets or paper wallets may be good options. Cold storage is one of the solutions you can use to add an extra layer of protection to your assets.

Stay informed and educated

Choose only trusted sources, be active in the internet community and keep your knowledge of cyber risks up to date by never stopping studying. Through the process of staying proactively informed, you can secure your cryptocurrency investment and enjoy peace of mind and extra confidence that your digital assets are secured.

In a nutshell, reducing your risks, having a good security plan, staying out of sight, protecting your devices and passwords and being vigilant are effective ways to protect your cryptocurrency investments against the ever-growing threats in the digital securing asset space. By implementing two-factor authentication, hardware wallets, updating software to their latest version, strong passwords, watching out for phishing scams, diversifying your assets, enabling notifications, protecting private keys, using cold storage, and to stay informed and educated, the misuse of your funds will be reduced and fund security will be achieved. But with the necessary precautions, using cryptocurrency doesn’t have to be a risky venture. It is with the understanding that proper planning gives you the necessary confidence.