Easy ways to keep your crypto safe!

In September 2022, actor Bill Murray lost roughly $185,000 worth of crypto after hackers infiltrated his wallet. In June, reports emerged that hackers are deploying clone apps on popular mobile app stores in an attempt to steal virtual currencies.

That’s not all, a malicious actor siphoned $400 million from the now-defunct FTX cryptocurrency exchange. This leads to the question of whether there are ways to keep your crypto safe. And the answer is a resounding yes.

There are simple ways that if followed can help keep malicious actors away, forever. Since cryptocurrency and blockchain technology are emerging markets, hackers are always looking to exploit gaps left by companies or people when securing their digital wealth.

What is the safest place to keep your crypto safe?

There are many ways to store your cryptocurrency. You can use a hardware wallet, a cold wallet, or an exchange. A paper wallet, although not commonly used, is another good place to store your virtual currencies. However, the safest place to keep your crypto safe is in a cold storage device like a Ledger Nano X which does not need to always be connected to the internet. Note that the opposite of a cold/hardware wallet is a hot/online wallet like the one offered by exchanges.

It’s important to make sure that you keep your private keys offline and not on any type of computer that is connected to the internet. That way, if someone was to get access to your private keys, they would not be able to access it without having physical access to the offline storage as well.

Is it safe to keep crypto on an exchange?

It is generally considered safe to store cryptocurrency on Coinbase, Binance, Bybit, or any other well-known and reputable cryptocurrency exchange. These platforms use a combination of hot and cold storage to secure your funds plus other measures meant to protect against hacking and other security threats. However, they don’t offer absolute guarantees that hackers won’t gain access to your virtual wealth.

Crypto exchanges are mostly designed with a deeper focus on reducing, if not eliminating latency during trading. This means that they are usually centrally located and provide a single point of failure for potential hackers.

Therefore, If you want to trade cryptocurrency on an exchange, make sure that you only keep the funds on the exchange that you are actively trading with. The rest of your funds should be kept in a hardware wallet off the exchange.

Here are some tips for keeping your crypto safe:

• Use a hardware wallet: These are physical devices that are generally considered to be the most secure way to store your crypto.
• Use a strong and unique password: Avoid using the same password for multiple accounts, and consider using a password manager to help you generate and store strong passwords. Also, don’t use passwords that are easy to guess such as your birthday, spouse’s name, favorite pet, or a combination of any such terms. Again, avoid writing the password on a piece of paper and store it in a vulnerable place that is easy to find or where it can easily be damaged by water, fire, etc.

• Enable two-factor authentication (2FA): Two-factor authentication adds an extra layer of security to your account thus making it much harder for someone to gain unauthorized access to your account.
• Be careful when sharing your personal information: Be cautious about sharing your personal information, since malicious actors may act friendly only to turn the tables on you, gain access to your crypto wallet and sweep it clean.
• Keep your software up to date: Make sure to keep your operating system and other software up to date, as these updates often include security fixes for vulnerabilities that could be exploited by hackers.
• Use a secure internet connection: Avoid using public WiFi networks to access your crypto accounts, as these networks are often unsecured and vulnerable to hacking. Especially when accessing an exchange or your wallet, avoid public WiFi networks no matter how convenient it is.
• Be cautious when downloading apps: Only download apps from trusted sources, and be sure to carefully read the reviews and permissions before installing any new app. Although malicious actors may try to clone an app, there’s one thing that’s hard to clone, the app’s publisher. Always do your research on the original publisher of the app then countercheck on the app store. Sometimes the difference between a legit and fake app publisher’s name can be a single letter or number.

• Use a reputable exchange: Choose a reputable crypto exchange to buy, sell, and store your crypto. Research the exchange before using it, and make sure it has a good reputation and a track record of keeping its users’ funds safe.
• Use non-custodial software wallets – If you want the added security without the complexity of using hardware wallets, you can use software or browser-based wallets that let you have full control of your virtual wealth. However, it must be noted that hardware wallets are still considered more secure than these types of wallets.

Conclusion

By following these tips, you can help protect your crypto from being lost or stolen. In addition,  regularly monitor your accounts for any suspicious activity such as unusual withdrawals or even deposits.