Cryptocurrencies have gone from something of a niche used by deep web surfers to one of the most sought-after investments, all in under a decade. The extreme volatility of digital currencies allows investors to enjoy extremely high rates of return in exchange for significant risk. And because of this, even institutional investors have warmed up to the idea of cryptocurrencies.
Business crypto wallets are essentially the same as the current wallets available on the market to regular enthusiasts. The difference here is that the best crypto wallets for business by Tezro have special features intended for more advanced users. Some include specialized trading options, higher levels of security or even integration cold storage solutions.
Given how highly-prized cryptos have become, crypto wallets have become a favorite target for cybercriminals and hackers. Because crypto transfers are pseudonymous, tracking stolen coins isn’t always possible. And given the decentralized and unregulated nature of these assets, recovery of lost cryptos is a whole new challenge on its own.
So, what can you do to protect your cryptocurrencies from being stolen by thieves? In the segment below, I outline various proven tips that will keep your cryptos safe and sound. Keep on reading to find out below.
How to Safeguard Your Cryptocurrencies
1. Never store your cryptos in an exchange account
The most important rule you must remember is that you should never store your cryptos in an exchange account. Crypto exchanges are the equivalent of cryptocurrency banks, and are often targeted by hackers. At the time of writing around $2.66 billion worth of cryptocurrencies have been stolen from exchanges alone.
This is in no way representative of the security measures taken by these exchanges. In fact, exchanges often invest heavily in the latest security tech to protect their assets. But the sheer volume of cryptos held makes them a top target for criminals.
To minimize your risk exposure, always transfer our cryptos into a hot/cold wallet as soon as possible. Never leave funds inside for an extended period of time. And always be sure to work with a reputable crypto exchange.
2. Invest in a cold wallet
Cold wallet lets you store your crypto portfolio offline where it cannot be accessed by hackers. Unlike a hot wallet, cold wallets come in the form of a physical storage device i.e. hard disk or pen drive. And because they do not require an internet connection, they are entirely safe as long as you do not connect a cold wallet to a compromised computer.
As an added plus, you can also physically secure your cold wallet by storing it in a safe or safe deposit box. That way, your assets are protected by another layer of security. Better yet, some cold storage devices are also compatible with existing hot wallets, thus allowing you to interface them.
3. Only perform transactions at home on a secure line
Man-in-the-middle attacks or MITM are one of the simplest but most effective ways for a hacker to steal your personal information. These attacks often occur when a careless user connects to public wifi and begins streaming personal data by accessing your online banking app or digital wallet. From here, the hacker is free to steal your information and then turn it against you.
What you should do instead is only perform online transactions when you’re at home and connected to a secure network. And if you want to be 100% sure, invest in a VPN to prevent any data theft. Another thing you can do is to regularly change your home wifi password every few months.
Despite the inherent volatility of cryptocurrencies, you can stay protected by keeping to these tips.
The key here is to remain alert of any security threats and maintain good security hygiene. And at the same time, only invest what you’re prepared to lose.