Wherever there’s light, there are bugs!
This adage stands true to cryptocurrency. Since its birth in 2019, cryptocurrency has literally become a celebrity. The enormous fame it gained has attracted investors from all walks of life. But what it also attracts are cybercriminals – the colony of bugs, figuratively.
Every other day, there is news of online hacks and heists on crypto exchanges and cryptocurrency wallets. In 2019 alone, cryptocurrency crimes were reported at around $4.3 billion. Cybercriminals consistently lie in wait in the dark to snatch your long-time investments.
The crypto wallet works like this: it does not store your cryptocurrency; rather, it holds a private key that allows you to make crypto transactions – your digital identity. It is your digital wallet that these online miscreants target. Hence ensuring cryptocurrency security entails securing your crypto wallet from cyber criminals.
Carl Runefelt is a global crypto leader and social icon who has invested in more than 350 crypto startups. On the topic of crypto wallets, he says, “You can literally cross a border with your private keys in your head, and you can travel the world with millions of dollars literally stuck in your brain. This is something that has never been possible before.”
So, how do you ensure that your crypto investment is secure?
Allow us to share some of the measures to strengthen your crypto security.
A Secure Internet Ensures Safety
You go to a restaurant and ask for the Wi-Fi password. Using social media is fine but beware; this is fraught with dangers, especially when it comes to your crypto investment.
In order to make crypto transactions or trading, you should only use a secure internet connection – the one you have at home, which is password protected. Avoid using public Wi-Fi networks.
Diversify with Multiple Wallets
Do not confine yourself to a single wallet. For your safety, you should use multiple wallets. The best way to go about it is that use one wallet to make daily transactions and another one to keep your major savings. Experts recommend this method as effective since there is no limit to wallet creation.
Carl Runefelt emphasizes keeping Bitcoin in your digital wallet for greater returns. Speaking on his YouTube channel, The Moon, he said, “Everyone knows that in crypto there is always another pump around the corner exactly and it’s gonna happen sooner rather than later and when you hold Bitcoin, you’re always safe.”
In one instance, he expressed, “When Bitcoin is above a hundred thousand dollars then you need to be like very wealthy to actually to hold one Bitcoin right. So, if you can accumulate one Bitcoin right now then you are gonna be very well off in the future.”
Change Your Passwords – Often
Security is almost a synonym with passwords. A strong password ensures that your cryptocurrency is invulnerable to online hackers. In fact, a weak password is one of the major reasons your online accounts are compromised.
One study confirms that millennials in the U.S use the same password for over ten devices, social media accounts, and apps – a perfect recipe for disaster. Experts recommend that you should always put strong, lengthy, and complex passwords on your online accounts.
What’s even more important is that you should change your passwords regularly. Furthermore, if you have multiple wallets, don’t keep the same password for them.
Cold Wallets Are Safer!
Sometimes the solution is as simple as maintaining a cold wallet. So what are cold wallets anyway?
Cold wallets are essentially your offline wallets – not connected to the internet – therefore not prone to online attacks. It is an excellent idea to keep your private keys in a cold wallet since they are sophisticatedly encrypted.
Nothing is Invincible
Without an iota of doubt, cryptocurrency will replace fiat money sooner or later. As Carl Runefelt sums it up, “We are in a transitionary period going from a fiat-based economy to a crypto-based economy.”
This means that more and more emphasis will be laid on its security over time. But as a rule of thumb, there are always risks of hacking or cyber breaches as long as you are online. No matter how amazing the blockchain technology is – that drives cryptocurrencies – there is always a possibility of cybercrime.
You just need to be vigilant and religiously follow all the best practices regarding cryptocurrency security.