What risks can there be when storing crypto currency
The protection of crypto ... Until now, these 2 words are perceived as something frivolous. After all, why protect the crypto currency when it is quietly stored on the purse, the client is installed on the computer, and access to the keys is only from the owner? All this seems safe only at 1 glance. In fact, in our realities, it is crypto-security, and not at all, the ability to earn a maximum of bitcoins, comes to the fore. After all, it is unlikely that you will be considered a successful trader if you earn 1000 bitcoins, after which you will steal all BTC to one. Here, and Vasya Pupkin will be richer than you, and in fact he earned only 0.01 BTC, but he was able to protect them from theft.
Why is the protection of bitcoins and other crypto currency is so important, and what risks do we expose them to during storage?
Risk 1. The human factor. Perhaps the most common and dangerous risk of all. Lost passwords from the purse or handed over to the attacker - and now you have lost your money. A person is not a computer that is capable of error-free execution of up to 1,000,000 operations per minute. We are characterized by imprudence and forgetfulness. It would seem that the usual thing, that's only in matters related to the crypto currency, this is the "usual thing" that can cost us dearly. However, below you will learn how to protect the crypto currency and what recommendations on crypto security should be observed in order to reduce the impact of the human factor to a minimum.
Risk 2. Keeping a large amount on the exchange. Exchanges are incredible opportunities for investors who can quickly buy the necessary crypto currency and exchange it for other digital assets. And at the same time, experienced users do not recommend storing large sums on the exchange because of the high risk of their theft. Today, almost every day in the world there are hundreds of attacks on the stock exchanges. The goal of hackers is clear - to take the money of their customers. And no one will give you a guarantee that your stock exchange will not be hacked next. So, keep money in your wallet, not forgetting the safety rules. On the exchange, however, only output the amount of funds that you need to conduct a transaction.
Risk 3. Malware. Everything is clear - went to a suspicious site, picked up the virus or trojan, and hackers got access to your PC. And there, the passwords from the wallets are recorded in one of the files. Sometimes it happens. In any case, it's better to immediately take care of purchasing the best licensed antivirus and firewall.
Methods of protecting crypto currency
Consider several ways that will protect your wallet from theft:
- Remember the password and do not set too simple passwords (date of birth, qwerty, etc.)
- Make a backup copy of the wallet file
- Install a reliable antivirus. It will provide protection against keyloggers
- Do not forget about encryption of secret keys
- Do not connect to dubious wi-fi networks
- Do not visit suspicious sites
- Keep the crypto currency on "cold" wallets
Useful tips for crypto security
All tips on cyber security can be divided into 2 categories - for those who store money on the exchange, and those who prefer to store crypto currency in other places.
Tips for the first category are as follows:
1. For each subsequent account on the exchange you must have your e-mail
2. Disable the ability to restore the account, use two-factor authentication
3. Passwords for purses should be complex - with letters and numbers, uppercase and uppercase
4. Do not use the same password for all accounts
5. Going to the sites of exchanges, more often clean the "cookies" and use the "incognito"
6. No means of autocomplete fields! This is the direct way to steal funds
7. Check your computer for viruses more often
8. Do not transfer to the purse of the exchange all your funds, but only those that you need to make transactions
Recommendations for the second category:
1. Always store the keys from the hardware purse in the place that only you know
2. Wallets for cold storage, buy from official manufacturers
3. Under no circumstances should you tell others about the value of your assets
How and where to store the crypto currency
Precisely do not do this on the stock exchange, because this is the worst place for your money. It is best to use for these purposes as hot wallets, and cold. Hot ones require access to the Internet, but the money that is stored in them is always available. Cold are needed for storing crypto currency without mandatory access to the Internet. Flash drive, personal phone, computer and hardware wallets - these are examples of cold wallets.
So - on the hot wallets, keep only the minimum amount of crypto currency you need to use in the very near future. All other money is best saved on cold wallets.