Keep It Secret, Keep It Safe; Why Crypto Security Matters

With great amount of Bitcoin come great responsibility... There is nothing worse then losing your coin because of a stupid mistake that could easily been avoided. There are a number of things in the cryptoworld you want to keep secret and safe and I will go over what is the most important and how it is kept secure in this special security focused article.

Watch Your Wallets

The first real step to getting into cryptocurrency is getting a wallet to hold your coins. There are a MASSIVE amount of wallets out there, it seems like every project has their own and no single wallet supports every coin. This presents the problem of having to have multiple wallets in different locations for supporting different coins, which can be a MAJOR security issue. While Blockchain technology is encrypted and almost impossible to hack, an insecure wallet app is another story. There have been a few recent cases (Parity wallet hacked & the BTC-e scandal) of this happening and hundreds of coins have been stole or lost due to poor security on wallet software.

SOLUTION: Keep the number of wallets you own to as little as you really need, don't open a wallet every place you go and leave money there thinking its safe. Research each choice heavily and make sure you have 2-factor authentication (we'll 'stache on this in a sec!) on before depositing large amounts of assets.

Password1234

This should go without saying, but have a secure password that you don't use for other things online. Many exchanges and wallets let you sign up for accounts just using an email and password without requiring identification, address, etc. If you are just checking out the platform that is one thing, but if you decide to deposit funds into this account you should turn on 2-factor authentication if it is offered. If it is NOT offered then I might think twice about leaving significant amounts of money in a place like that.

SOLUTION: 2-Factor Authentication can save your precious coins if someone finds your password. With 2-factor authentication you have a password and then verified by another source, many times a text message to your phone with a code. It seems like a pain in the ass to do this every time and you are RIGHT, it is, but it's much better then possibly losing your investment due to hackers.

Take The Keys Back!

When we talk about a private key it is basically the gateway to unlocking the wallet in which you have your coins stored. Some apps and wallets give you access to your keys while others you don't truly hold. No matter what the situation is these should never be shared and should be kept in a safe place. I had some Bitcoin sent to a paper wallet and I had 2 printouts that I put in 2 different locations so I would never lose them! It may sound crazy, but I wasn't about to lose my coins to something that absent-minded!

SOLUTION: If you have your private keys, keep them safe and don't share them with any as they are full access to your wallet for the taking. You can also keep the coins you are holding in a hardware wallet like the Trezor or Ledger which are 2 favorites.

TL;DR

Don't take security matters lightly when it comes to cryptocurrency. Take the same precautions you would if you were handing a bank your physical currency. Always double up! (2-Factor Authentication that is... it's a pain but worth it ). Bottom line is, while it is digital it can have great value and you can lose it in an instant if you are not careful. Keep those private keys secret and safe, because they are your preeeeeecious...

The 'Stache IS secure!

Check out my blog for more at https://www.cryptostache.com !