The Crypto Era
Cryptocurrencies which is a digital asset designed to enable exchanges and secure transactions using cryptographs to control the creation of additional units and verify the transfer of assets have gradually grown since its inception in 2009 with the introduction of bitcoin. It’s now the rave of the moment with individuals who aren’t so much of financial and tech enthusiast longing to have a better grasp of the whole blockchain revolution.
Last year was a great run with cryptocurrencies experiencing a reasonable amount of success, the bitcoin which is the pioneer and biggest cryptocurrency experienced a massive rise from $973 on January 1st to $13,621 at the end of 2017 with others hitting the roof as well which could be considered a great success.
This rapid increase in the cryptocurrency market prices has led to so much attraction with criminals now hacking and emptying wallets of individuals as well as cryptocurrency exchanges such as Youbit, a South Korean exchange hacked for the second time leading to it shutting down. We all know there are no physical regulators in the crypto world which mean individuals who lost thousands/ millions of dollars in cryptocurrencies might never recover from it as the chances of a possible compensation are quite slim.
All these positive and adverse developments make it imperative for us to ensure proper safe keep of our cryptos to avoid falling victim of such painful theft. I am sure there are quite a lot of us who are already enlightened with different methods and procedures in ensuring a vault-like security of our wallets in avoiding a stealth penetration. However, you could learn a thing or two and for newbies, this is intended to serve as an eye-opener.
Below are some suggestions on how you can ensure the safety of your cryptocurrencies;
Enabling 2 Factor Authentication
This is also known as the two-step authentication, it is an additional security layer which could be activated on some exchanges such as Bittrex before a transaction can be completed. It usually involves the use of a Google app responsible for generating codes on your phone which would be inputted into the exchange to authorize your transactions. In using the 2FA, you have to ensure your mobile phone doesn’t get into the wrong hands and also keep you backup code just in case it's required.
Diversification
This primarily involves your spreading your portfolio of risks by keeping your coins in different exchanges to avoid a colossal loss in the event of an unauthorized access. Also, you should spread your coins in both online and offline wallets.
For big investors, keep your coins in an offline wallet
Offline wallets are the best for individuals that hold large quantities of cryptocurrencies. They could either be stored in a software or hardware wallet. A hardware wallet which could be considered one of the safest involves storing your cryptos in a physical device such as a USB or paper wallet which has both private and public unique keys generated online. The private keys are codes that enable the transfer of your cryptocurrencies from your account to another making transactions with your coins easier.
Avoid accessing your accounts at cyber cafes or with public systems
Your crypto wallet is a very delicate and sensitive one which requires extra caution. This is the more reason why you should avoid accessing them at cyber cafes using public computers or wifi network which could increase the possibility of it being hacked. If you must, make sure you log out correctly and wipe the browser history.
Never Use a single password for all your wallets
This should be avoided as much as possible, it's better you have different unique passwords for all your wallets as opposed to having just a single one for all to avoid a total access to all your wallets in the event of one being cracked.
Conclusion
With these security updates above, you should be better equipped now on measures to put in place to keep your financial investment safe. Also, you should learn to keep yourself abreast and updated with new development in the crypto world to help you stay enlightened.
Thanks for reading :)