CXO Matters
Finance & Accounting

Ways to Safeguard Your Cryptocurrency 

Ways to Safeguard Your Cryptocurrency 
Image Courtesy: Pixabay
Written by Aiswarya MR

If you have invested $1 million or more in your private cryptocurrency wallet, you are among the crypto whales. And did you know that crypto hackers are also one of them? That’s right! More than $4 billion in cryptocurrency was stolen in 2020. The very recent theft of $625 million worth of cryptocurrency from the Ronin Network was even more destructive to the crypto world.
Advanced technology can armor cryptocurrency but that is not enough. Proper information on how to safeguard these valuable assets can help us eventually outsmart the crypto thieves out there.
There are two ways that hackers use to steal digital assets; one is direct hacking into your digital wallet and the other is to deceive you into giving them the digital money. Both can be prevented.
Keep on reading to find out the most potent safety practices that can protect cryptocurrency from hackers.

Invest in cold wallets 

Cold wallets are one of the safest tools to protect your cryptocurrency from hackers. It is a piece of hardware that can store all your cryptocurrencies while safeguarding them.  

As the cryptocurrency is saved in the cold wallet, it requires no internet connection for hackers to find information. This wallet has to be plugged into the device you use to access the cryptocurrency and it can only be reaccessed once you plug in the wallet. Your keys are saved offline giving the assets more security against cyber hacks.  

Use cold wallets to keep most of your cryptocurrency and try not to rely on online wallets. 

Avoid unreliable crypto exchange 

Every time you are about to make a crypto exchange, ask yourself if it can be trusted or not. Be extra cautious when it comes to investing in any cryptocurrency checking out its reviews online. Invest in only those exchanges that are credible.  

Subscribe to the newsletters and feeds that provide viable information about all the reputable and trustworthy exchanges. 

Secure your devices 

For excellent security, update your password on your devices at least every month and ensure they are strong enough to avoid crypto criminals hacking into your system. Keep separate strong passwords for your personal and professional accounts and platforms.  

Ensure that you are never saving your passwords anywhere online or noted down on your phone or elsewhere. Try to memorize them for additional safeguarding of your digital assets. 

Upgrade your information 

Communicating with those who have good knowledge of cryptocurrencies can be extremely helpful to avoid hackers. There is a plethora of content available on YouTube where experts provide up-to-date information and the latest tricks that scammers use to deceive.  

Subscribe to the latest financial and crypto news to keep yourself updated.  

Never share your private keys

Sharing your private keys with anyone increases your risk of being defrauded and losing all your cryptocurrency. It is just like your social media account credentials that hold all your information. This is why it is crucial to never share your private keys with anyone. 

The potential for risk is always there but it can be avoided if correct measures are taken and by being assertive. Always stay alert whenever you click on any links sent to your phone or any other device. The correct action can be helpful to protect your cryptocurrencies from hackers.