As cryptocurrency continues to gain mainstream popularity, the threat of cybercrime grows. Bad actors are constantly looking for ways to access your digital assets. But with the right precautions, you can protect your funds from theft. In this guide, we’ll explore the best ways to store and secure your cryptocurrency.
How to Keep Your Crypto Safe: Essential Tips
TL;DR: Follow these key tips to secure your crypto:
- Use a Cold Wallet: Store your cryptocurrencies in offline wallets for added security.
- Avoid Exchanges for Long-Term Storage: Limit the amount of crypto you store on exchanges.
- Use a VPN on Public Wi-Fi: Protect your data by using a VPN on unsecured networks.
The Risks of Storing Crypto Online
The rise in crypto’s popularity has been accompanied by a rise in hacking incidents. Since 2013, over 20 exchanges have been targeted, with many losing millions of dollars in stolen crypto. One of the largest hacks occurred in 2014 when Mt. Gox lost 740,000 bitcoins. Even more concerning, exchanges can halt withdrawals or shut down without notice, leaving users without access to their funds.
For these reasons, it’s vital to avoid storing large amounts of crypto on exchanges, where funds can be vulnerable to both hacks and regulatory challenges.
Use Cold Wallets for Maximum Security
For anyone holding significant amounts of cryptocurrency, cold wallets (offline storage) are the most secure option. These wallets are not connected to the internet, making it virtually impossible for hackers to access your funds remotely. To initiate a transaction, you need to physically interact with the device, adding an extra layer of protection.
If you’re new to cryptocurrency, it might take some time to get comfortable with cold wallets, as they require some technical knowledge. However, they are worth the investment, especially if you're holding crypto long-term.
Hot Wallets: In contrast, hot wallets are connected to the internet and more convenient for frequent transactions. However, this constant connection makes them more vulnerable to online threats. Therefore, it's not advisable to keep large amounts of crypto in a hot wallet.
Avoid Public Wi-Fi Without Protection
Best Practices to Prevent Crypto Theft
As the cryptocurrency market continues to grow, so does the sophistication of cyber threats. Here are some additional tips to ensure your crypto stays safe:
- Enable Two-Factor Authentication (2FA): Always use 2FA on your exchange accounts and wallet services to add an extra layer of security.
- Be Cautious with Phishing Attacks: Never click on links from unknown sources. Always verify the legitimacy of websites and emails before entering sensitive information.
- Regularly Update Your Security Protocols: Keep your devices and software up to date to avoid vulnerabilities.
Why Trust Coins.ph for Your Crypto Storage?
Coins.ph is committed to providing a secure platform for cryptocurrency users. We are regulated by the Bangko Sentral ng Pilipinas (BSP), ensuring that we adhere to strict security standards. As the first blockchain-based company in Asia to hold both Virtual Currency and Electronic Money Issuer licenses, Coins.ph offers a trusted environment for your crypto.
Sign up for a Coins.ph account today to start trading and securely store your crypto. Whether you’re new to the crypto world or an experienced trader, we offer a simple, secure solution to keep your digital assets safe.
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