Ever since bitcoins (BTC) burst onto the scene around 2009, the rise of the cryptocurrency (crypto) industry has been phenomenal. While digital currencies have made some investors rich, others have lost their fortunes to cyber-criminals.
It’s one thing to have a crypto wallet, but keeping your valuable coins safe is another matter altogether. This is one of the hardest facts to face in the business. As of early June 2020, BTC (the market leader in crypto) appears to be heading back to its glory days when it peaked at $19,000 in 2017.
As BTC’s price surge continues, you may want to hold onto your crypto assets for the long-term. If so, you must properly secure them against malicious cyber-attackers. Security always begins with you, the trader. Make your personal security barrier impenetrable and ensure that though they may try, hackers will not get their free lunch at your expense.
Below are some tips on how to ensure that your digital assets are not exposed to the prying eyes of hackers.
How to Keep Your Crypto Safe
Get a secure crypto-wallet and rule your world like a boss. Using crypto-wallets, traders can transfer and receive cryptocurrencies from other wallets linked to the blockchain.
Crypto-wallets fall into two broad groups — hot and cold wallets. Hot wallets are linked to the internet, meaning that they are accessible at any time, from anywhere. This provision makes it possible for crypto-dealers to meet on exchanges and transact businesses with one another.
Cold wallets, on the order hand, are not based on the web. With these, you can receive crypto from other parties, but no one can withdraw funds from your wallet except you.
Frequent crypto-traders normally use hot wallets. If you intend to hold onto your coins for the long-term, an offline wallet will suit you better.
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Store Your Coins in Cloud Wallets
Cloud wallets are online wallets (hot wallets). They provide the convenience of easy access to your funds from any part of the world. However, their online availability makes cloud wallets vulnerable to cyber-attacks.
Hardware Wallets
These physical wallets can store your crypto assets on USB devices. It’s possible to make payments with them too. When you insert your USB wallet into a PC, you can log into your account and make the transactions you need to.
Use a Paper Wallet
Because they are based on cold storage, paper wallets guarantee high security for your digital currencies. However, they are also vulnerable to loss or damage since they are in the form of paper prints.
Software Wallets
You can download and install software wallets on your smartphone or a desktop computer. Some software wallet providers may allow you to login to your account from multiple devices.
The crypto industry has been facing setbacks since its inception. Naysayers have been predicting doom for crypto, partly due to the high volatility of bitcoins. Some governments have also been very critical of the industry because they hate the very idea of decentralized digital currencies. Despite the wave of resistance, there’s still hope for crypto-investors, providing their security is not compromised.
Depending on your individual needs, the above wallet types may help you to secure your bitcoins or other crypto-assets.
