Published on: https://money-informer.com/
There are many sayings that you hear in the crypto world, and one of the most common ones is “Not your keys, not your coins”. This holds true when it comes to the safety of your crypto investments, as there are many examples of exchanges that cybercriminals attacked in the past, leading to significant losses for crypto users. The truth is that the digital currency landscape is filled with risks, and yet, many navigate it safely without exposing themselves to big losses. But how do they manage to do so? Well, they prioritize protecting their funds, because they know it’s their responsibility and no one will do it for them.
Binance data shows real-time prices of Ethereum and Bitcoin, allowing investors to capitalize on their investments. But throughout this journey, it’s also essential to stay educated on the most common scams and other digital threats and how to avoid them. Let’s see how you can keep your crypto assets safe!
Always DYOR
There’s a reason why you keep hearing all the time to do your own research when investing in cryptocurrencies. This is a golden rule that will help you minimize risks, ensuring you won’t lose money just because you choose not to be knowledgeable about what you’re investing in. Why should you trust something that you see online? That’s one of the worst mistakes you can make, especially when your money is at stake.
Not everyone has good intentions, and you should always keep a healthy dose of skepticism. If you see a project advertised on social platforms promising you that it will make you rich, don’t invest in it right away. Instead, take the time to research the project, and understand how it works. When coming across an unknown crypto, you want to look into its team of developers and check their track record. Also, it’s essential to study the white paper of the specific project, as this document provides a detailed explanation of the most important things you need to know about it.
Use a hardware wallet
When it comes to protecting your crypto funds, one of the most important decisions to make is whether you will use a crypto wallet or an exchange. The choice ultimately comes down to your individual preferences and needs as an investor. Suppose you want to store large amounts of cryptocurrency; a hardware wallet is the best option.
Essentially, a hardware crypto wallet allows you to store and transact digital assets like Bitcoin, Ethereum, and more. While hot wallets are also available, they are considered less safer than hardware wallets (also known as cold wallets). That’s because they are connected to the Internet, making them more vulnerable to cyber threats. While exchanges may seem like a convenient option, they are also susceptible to threats because cybercriminals often target them, putting your crypto holdings at risk. This is why it’s better to move them into a hardware wallet instead.
Monitor your crypto accounts on a regular basis
In order to keep your crypto assets safe, be sure to track your transactions to spot any suspicious activity. To do this, you can enable alerts or notifications that will receive on your email, or your phone via a text message. Also, be sure to examine all the activity of your crypto account, such as login history and transactions, and also check account settings for any red flags that could point to unauthorized access.
This is one of the easiest ways to ensure your crypto assets are safe, and it only requires a bit of effort on your part. Remember, before you decide to invest in crypto, you should first ensure that you are willing to take responsibility for your investments. You need to treat investing seriously if you want to stand a chance at making profits.
Avoid storing your password on the Cloud
When using a crypto wallet, you will be given a public and a private key, as well as a seed phrase, that gives you extra security. Simply put, a seed phrase is a sequence of random words that help you access your crypto funds. One of cybercriminals’ tactics is to try steal the seed phrase so they can get their hands on your assets.
Due to this reason, it’s crucial to avoid storing your phrases (or passwords) on a device that could easily get exposed to threats. Instead, it’s wise to write them on a piece of paper and store them somewhere safe within your property. Or, consider engraving them on a metal card, as this will also safeguard them against fire or water damage. Also, keep in mind that crypto protocols don’t require this information, so if you’re asked about the seed phrase or password, this is a red flag that likely means a malicious actor is trying to get access to your crypto.
Stay vigilant
Being watchful is an essential practice when it comes to protecting your crypto funds. The crypto market has evolved rapidly, and along with it, cybercriminals have also created more sophisticated tactics. So, always use caution and beware of phishing emails: look for addresses that seem off, grammar mistakes, and odd spellings, as this often tells you that there’s something suspicious.
We also recommend staying away from giveaways (no matter how tempting they may seem to be) because, more often than not, they won’t help you make money; instead, they will threaten the safety of your crypto assets. Whenever you visit a crypto app or website, be sure to double-check it to ensure it is legitimate.
The bottom line
Since cryptocurrency involves money, it’s evident that it is exposed to the risk of being stolen. But you shouldn’t let that scare you. What you have to do is be cautious and take the proper steps that will help you ensure you won’t be left without your precious funds.
As highlighted in this blog, there are many good practices that you can implement to ensure bad actors won’t get access to your crypto wallet. What you always need to keep in mind is that you are solely responsible for your funds’ security, and if you don’t want your crypto assets to end up in the wrong hands, well, you should commit to protecting them.
