With the industrial revolution came the need for environment protection just like how the rise of the internet inspired cybersecurity laws. When it comes to cryptocurrency, the game changes because digital money isn’t regulated by any government, individuals or institutions. Subsequently, you may wonder what happens should you lose your cash during cryptocurrency transactions. Hence, every person must take some precautions when they doing any crypto exchanges. Here are some:
Understand the Cryptocurrency Security Loopholes
It’s not easy for someone to break into your digital wallet and take your money. However, this doesn’t mean that the act is impossible. This is because there are professional online fraudsters with years of experience in hacking.
Those who don’t, use phishing techniques to acquire security codes that open up your online vaults. Others resort to cyberbullying, threats or sabotage. Whichever the case there are numerous precautions to take when dealing with cryptocurrency exchanges.
Split Your Money
There is no limit to the number of digital wallets that you can have as an individual. Subsequently, you’re in a position to take heed of the old adage that warns against having all your eggs in one basket. The precautionary measure protects you from losing everything in the event of a successful hacking raid or phishing expedition. Splitting your money into different cryptocurrency wallets also gives you the confidence that comes with having your investments protected by an array of technologies.
Your cryptocurrency security keys should be among your best-guarded secrets. Make sure that the key is as complicated as possible by following the recommended password creation rules. A good password is one that doesn’t have your name, year of birth or the day you got married since these are personal facts that you can’t keep away from certain people or institutions. Let the password be something known to no one but you. Something you can’t forget even though you never talk about it.
The Cold Storage Option
Having a strong password isn’t enough. You have to go an extra mile and formulate a way to keep it safe, and there is no better way to do this than to have it in cold storage. This means having it off-line as your computer is always vulnerable to cyber attacks that can siphon the information and land it in the wrong hands. Get a bit creative with the storage options.
Don’t simply write the private key on a piece of paper and hide it in a bottle beneath your closet because your house cleaner may just throw it out one day. Have as a code in copy-protected USB key or as a quick response code. Some people prefer barcodes just like you may be into blockchain cryptography.
Security and tech advancements merge to open a world of possible solutions to safeguarding your digital wallet. The use of your fingerprints to protect your crypto-investment is usually a brilliant idea.
Some cryptocurrency brands are yet to adopt this option, but this doesn’t mean that you can invest in them especially if they have brighter future prospects. You can always have a unique device, one that you don’t carry around, with biometric protection for your security key storage purposes.