Cryptocurrencies are becoming more and more popular every day. As the value of Bitcoin and other digital currencies continues to rise, more and more people are looking to invest in them.
While this is a great opportunity for those who get in early, it is also important to remember that cryptocurrencies are still relatively new, and there are a lot of risks involved in investing in them. We will discuss how to safely secure your digital assets, including cryptocurrencies.
1. Use a Hardware Wallet
Hardware wallets are small devices that can hold your cryptocurrencies. The private keys to your digital assets are stored on the device, so you need to keep it secure. While hardware wallets are more expensive than other wallet options, they offer great security and convenience features. You can also find softwares that assist with Bitcoin storage and self-custody; many offer 2-factor authentication, cross-device logins, etc.
Ensure to buy through an official reseller or partner, as there have been fake devices that look like they are made by the official company. Most cryptocurrencies are stored on an exchange or a third-party website, like Binance.
2. Use a Paper Wallet
A paper wallet is a piece of paper with your public and private key printed on it. If you wish to use this method, make sure not to lose the paper (or else you could potentially forfeit your funds).
You can store multiple currencies in a single paper wallet, but sending digital assets to a paper wallet can be a bit complicated. You should also store your paper wallet somewhere secure.
3. Backup Files and Store Them Safely
If you have a small amount of cryptocurrency that you’re willing to lose if it is stolen, then you could opt for an online exchange or desktop client. However, you should back up your files if they are not encrypted. Make sure to use strong passwords, and don’t forget them.
4. Buy Insurance
If you have a large amount of cryptocurrency that you simply cannot afford to lose, then it is best to invest in insurance. Depending on the size of your investment, this can be quite expensive. You can research options online or speak to your bank.
5. Use Your Own Wallet
If you have cryptocurrency, then you should also download a mobile wallet like OKX. You can get both the official wallet and the official block explorer from your respective coin’s website. Make sure to follow all security recommendations.
6. Keep Update to Date On Hacking and Phishing Attempts
Beware of fake Initial Coin Offering (ICO) websites that look like the real deal. It is a good idea to bookmark your website and social media accounts, so you know it’s genuine.
You should also always check the spelling of the web address while entering your login details. If something seems strange, then contact customer support immediately.
As the value of cryptocurrencies continues to rise, more and more people are looking to invest in them.
However, it is important to remember that digital currencies are very different from fiat money (government-backed currency like dollars), and there are a lot of risks involved in investing in them. If you want to invest in cryptocurrencies, ensure to follow the recommendations listed above.