It is a fact that cryptocurrencies investors across the world love bitcoin and other cryptocurrencies. So even if you hate it, it will surely never go away. Investors are astonished to see digital currencies growing tremendously without the need or support of central authorities. Every day new users are joining the bitcoin community and are investing their hard-earned cash in digital currencies. Though people are investing their money in digital currencies, these currencies are undoubtedly risky. Investors are excited but worried about the security of digital assets at the same time.
Most cryptocurrencies are built on blockchain technology, making it possible that the bitcoin network never gets hacked. But the platforms through which users buy and store cryptocurrencies like crypto exchanges and digital wallets are where the risk is involved. Both exchanges and wallets are vulnerable to cybercriminals. So, it is crucial to take suitable security measures to protect your digital coins from hackers.
In the forthcoming points, we will discuss some steps or tricks that every investor must use to protect their bitcoins.
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Set a strong and unique password
Whether you choose to store your digital assets in a digital wallet or a crypto exchange, the first step you need to take to secure your crypto coins is to use a unique and robust password. Strong passwords act as a line of defense that allows you to secure your account and crypto coins. Crypto exchange accounts and wallets or other accounts that contain banking information or sensitive information should have a unique password. Using a strong password will help traders trade efficiently through the Bitcoin Revolution and earn profits daily.
Make sure to use different passwords for different accounts. Passwords must be at least 16 characters long. If you use a short passport or personal information, it will be easily predictable. Use complex and random passwords, so it will be impossible for hackers to crack them.
Enable feature of two-factor authentication
Another best feature to secure your accounts is two-factor authentication. Using the 2FA features adds a layer of security and makes the process of securing your account easy. Some digital wallets provide users the option to set 2FA to ensure the high safety of the wallet. You can either choose to use the 2FA feature provided by the wallet or use other 2FA apps available on Google Play Store or App Store. Ensure to use the 2FA feature for transactions that are worth any cryptocurrency amount.
Avoid keeping your crypto coins in exchanges.
Crypto exchanges are the best and reliable platforms to invest in cryptocurrencies. Some crypto exchanges offer investors the storage vault to store crypto coins. Most investors agree to this and store their crypto coins in exchanges which is highly not recommended. It is better to remove your crypto coins from exchanges as soon as you invest in them.
In the past, there have been reports of many exchanges getting hacked. In 2010, one of the largest crypto exchanges named Mt Gox reported losing around 850,000 bitcoins. Crypto experts say that your money is never safe with crypto exchanges. It is because the exchanges don’t focus on providing security but on selling and purchasing cryptocurrencies. Crypto exchanges that provide safe vaults keep user’s private keys with themselves, and in the case of private keys, it is better not to trust anyone.
Invest in a digital wallet
The best and safest way to store your digital assets is to store them for the long term and in cold storage wallets. There are mainly two types of digital wallets that include hot wallets and cold storage wallets. Hot wallets are internet-connected wallets and are suitable for traders or users who trade digital assets daily.
Hot wallets provide extreme flexibility to users, but cold storage wallets are the best for security. Cold storage wallets are highly secure wallets mainly available in hardware devices that get connected to a phone or computer. Hot wallets are vulnerable to cybercriminals, while cold storage wallets are secured wallets. But still, it is essential to secure a wallet with the best security methods.
