Blockchain-based technology is accredited around the globe for its inherent safety. However, both traders and investors have been complaining lately about losing their crypto holdings. The reasons behind the same range from phishing scams to hacked exchanges, improper management of private keys, and many more. In stark contrast to the traditional form of banking, once the digital currencies leave your wallet, you cannot enforce any legal proceeding for getting them back. Moreover, no insurance can be claimed on the amount lost which is why it is extremely important to ensure the safety of crypto holdings by following the below-mentioned tips.
- Opt For Cold Wallets
When compared to hot wallets, the cold ones are not prone to cyberattacks as they do not connect with the internet. Users can store all their private keys in the encrypted hardware wallet which enhances its level of security.
- Keep Your Device Secure
Guaranteeing proper security of your device and updating it timely can defend it against the recently discovered threats. For strengthening the security meter of your device, you can install a strong firewall and anti-virus which can keep it buffered from hackers trying to take advantage of the loopholes.
- Ensure A Secured Internet Connection
While engaging in crypto transactions, it becomes imperative to avoid public Wi-Fi and stick to a secure internet connection. Virtual Private Network (VPN) usage is advisable for strengthening the level of security even while using your home network. A VPN is capable of keeping your browsing sessions safe by altering your location and IP address.
- Undertake Regular Password Change
Strong passwords have a big role to play in maintaining the security of your crypto account. People have a general tendency of using the same password on different applications, devices, and even social media accounts. Doing this just adds to the level of threat as hacking just one password can make all your other accounts vulnerable to hacking threats. It is always advisable to set a complex password using a combination of letters, numbers, and special characters which shall be difficult for anyone to guess. People holding multiple wallets are advised to use separate passwords. Opting for multi-factor authentication can guarantee greater peace of mind by enhancing the security meter.
- Keep Multiple Wallets
In the field of finance, we are often advised not to store all our eggs in one basket. The same advice also holds in the world of crypto wallets where diversification can bring down your risk factor. You can use one wallet for carrying out all daily transactions and store your remaining holdings in a separate wallet. Apart from safeguarding your portfolio, this will also assist in mitigating losses arising out of a breach of your crypto wallet.
- Beware Of Phishing Threats
Malicious emails and advertisements are the most common form of phishing scams undertaken in the cryptocurrency world. These attacks are usually performed under the veil of fake domains which impersonate affiliated employees and organizations. They simply end up embedding harmful links in the emails. You need to be extremely careful while undertaking crypto transactions and avoid all unknown links at all costs.
As more and more people are opening up to the potential of cryptocurrency, competition amongst digital wallets is increasing rapidly. The ultimate onus is on users to be selective while choosing the wallet so that they can engage in transactions with various merchant websites like shopping portals, entertainment sites like playamocasino.ca and more in a worry-free manner. To keep things on the safer side, it is advisable to opt for crypto wallets developed by reputable companies and carrying a stellar track record.