How to Protect Your Cryptocurrency and Keep It Safe
Cryptocurrency is an exciting new frontier, one that many investors and venture capitalists are bullish on.
But with this new technology comes new risks.
The same principles that make cryptocurrency so secure also make it extremely easy to steal. If you’re going to invest in this emerging technology, you need to take some precautions first.
Because digital currencies are such a target , the risk of theft is much higher than investing in regular stocks or bonds.
However, if you take the right precautions, the risks can be mitigated significantly. Here’s how you can keep your cryptocurrency safe while still reaping the benefits of these emerging assets.
Install the Right Software and Keep It Up to Date
Just like with any other computer program or piece of software, the first thing you should do is make sure you have the latest version installed.
This ensures that you have the latest security patches in place and protected against the latest threats. You can find instructions for downloading and installing the software for your specific device on the exchanges’ websites.
Additionally, keep your computer updated with the most recent security patches.
This will help protect your device from having viruses or other malicious software installed that can jeopardize your funds.
Stay Away From Exchanges
You may be tempted to store your cryptocurrency on the exchange that you bought it from.
After all, it’s a quick and easy way to withdraw your money as needed.
Trust us, we get it. However, we urge you to resist the temptation.
Keeping your cryptocurrency on an exchange is a huge security risk.
The exchange is the only one who has access to your private keys, so they can transfer your funds whenever they want.
If they go out of business or suffer a major hack, you run the risk of losing all your funds. After purchasing your cryptocurrency, transfer it off the exchange as soon as possible. There are a few different ways to do this, depending on which coin you bought.
Once you have control over your funds, keep it there.
Use a Lock-up Period
If you plan to hold onto your cryptocurrency for a long period of time, you may want to consider a lock-up period.
By setting a lock-up period (i.e. a period of time that you don’t sell your cryptocurrency), you can protect your assets from being liquidated prematurely if the market takes a dive. You can set a lock-up period in your investment contract, so it’s important to understand the terms of your contract before purchasing.
If you want to sell your cryptocurrency, but you’re worried about timing, a lock-up period can come in handy.
Since cryptocurrency markets are so volatile, you can use a lock-up period to prevent yourself from selling at a low point.
Don’t Install Everything From the Google Play Store
While it may be tempting to download all your cryptocurrency apps from the Google Play Store, we’d advise against it.
While this is a good idea for apps that you use daily, it’s not a good idea for apps that deal with your cryptocurrency.
Since your funds are worth significantly more than apps you use for daily tasks, you’ll want to take extra precaution when downloading apps that deal with your cryptocurrency.
We recommend that you download apps directly from the company’s website.
This will give you more assurance that the company is legitimate and that the app is safe. While Google Play Store has some strict rules and regulations, it’s still possible for a malicious app to make it onto the store.
By downloading apps directly from the company, you can be assured that the app is safe.
Set up Two-factor Authentication (2FA)
If you’re storing your cryptocurrency in a wallet, you’ll want to make sure that you have a robust security system in place.
One of the most effective ways to protect your wallet is with two-factor authentication (2FA).
Essentially, 2FA means that you’ll have to enter a second form of verification in addition to your password. This is often in the form of a unique code that is sent to your phone via SMS or an authentication app.
While it might seem like an added hassle, 2FA is an absolute must for people who are investing in cryptocurrency.
If someone manages to steal your password and login information, there isn’t much they can do if they don’t have your phone.
While investing in cryptocurrency is an exciting and potentially lucrative venture, it’s important to take the necessary precautions to keep your funds secure.
By installing the right software and keeping your devices up to date, avoiding exchanges, setting a lock-up period, and setting up 2FA, you can protect your digital assets and keep them safe.