Best Practices For Keeping Your Cryptocurrency Assets Safe

Cryptocurrency is part of an exciting and futuristic new age of digital finance and investments. If you’re someone who considers themselves well-acquainted with the basics of blockchain and already own or are planning to own some crypto, it’s important you learn how to keep your digital assets safe and secure. In this article, we’ll go over some simple and time-efficient tips to ensure your investments stay out of the wrong hands.

Choose a secure digital wallet

Before anything else, you need to make sure you have a secure location where you can keep your cryptocurrency long-term. One way to do this is to set up a cryptocurrency wallet. A wallet is essentially a digital version of the kind of safe where you might keep jewelry or other physical assets. There are two main types of wallets: hot and cold. Hot wallets are named as such because they remain connected to the internet, which makes them useful for frequent traders but also easier to hack. Cold wallets, on the other hand, can store your crypto assets offline and make them harder to compromise. If you have the basics of safe crypto trading down and are ready to start researching new investments, you may want to get in early on these cryptocurrency presales shortlisted by Sal Miah.

Enable two-factor authentication

Two-factor authentication (2FA) is another quick and simple way to add an extra layer of security to crypto accounts. They can ensure that, even if your password is leaked, a malicious actor still needs another method of verification before they can access your assets. This could be a code delivered to your phone or generated in an authenticator app. It’s strongly advisable to enable 2FA wherever you see it, particularly for any trading and wallet accounts, as large-scale data leaks could lead to your login information being sold on the dark web.

Create strong passwords and use a password manager

It may seem cliché, but the importance of a long and robust password truly cannot be overstated when it comes to cryptocurrency. You can pick between generating complex passwords with a combination of uppercase and lowercase letters, numbers, and symbols, or a longer and more memorable passphrase/sentence. Whichever you prefer, it is imperative that you pick a different password for each of your cryptocurrency accounts. If you think you’ll struggle to remember multiple complicated passwords, it may be worth using a password manager instead. Password managers can also generate new passwords and save them to your account automatically, giving you one less thing to think about.

Diversify your storage solutions

Regardless of whether you’re a new or seasoned crypto trader, it is not advisable to put all your eggs in one basket. You should strongly consider distributing and storing your digital assets in multiple different wallets or accounts, perhaps keeping a mixture of both hot and cold wallets. You can use the hot wallet for quick and easy trading, and stick the rest of your assets in multiple cold wallets for the long-term. This ensures that if one of your wallets or accounts malfunctions, you won’t be at risk of losing all your assets in one fell swoop.