A crypto wallet mostly works in the same way as a traditional wallet does – it is designed to keep your money safe and always needs to be kept safe and secure for this to happen. There are a few more hazards to watch out for in the online world, which ultimately mean that extra care must be taken when it comes to a crypto wallet. That is why we’ve put some tips together to help you keep both wallets and funds secure.
How to protect your crypto?
In the previous article dedicated to the questions of online security, we announced five simple rules that will help you to save the money and personal data from various Internet fraudsters. This time, we’re going to extend the list with some extra recommendations aimed to enhance the protection of your funds stored in a cryptocurrency wallet.
Choose online services carefully
While there are many online services out there designed for crypto users to store their funds in, many of them have suffered from security breaches in the past. It has led to the situation when the users of those services appeared to be left out of pocket. If you’re willing to get an online wallet, ensure it’s the one with a good reputation. It’s especially good if the wallet has two-factor authentication. Otherwise, you’d better go and explore some alternative options since it comes to your own money.
Don’t store more than you need to for everyday use
It’s easy to draw parallels between a traditional wallet and a crypto wallet here, as you wouldn’t head out with thousands of pounds in your wallet just for the sake of it. Therefore, it’s also unwise to keep a huge amount of cryptocurrency in your crypto wallet too. The right process should be organized this way: only small amounts stored in a crypto wallet, with the rest kept elsewhere, in a safer and more secure location.
Keep a backup safe
One of the most important things to do if you use cryptocurrency is to ensure you have a backup of your wallet in a safe place. This will help you to protect yourself against any mistakes or computer errors which may occur. Backup wallets will also need to be called on if, for example, a user’s computer or mobile phone is stolen. Making regular backups is vital too, as there will be changes over time (such as new crypto addresses). The updates will need to be repeated until changes come into play. The wallet, in its turn, will only have to be backed up once.
Encryption
Encryption has become an essential part of our lives from WhatsApp messages to personal data and online transactions at mFortune Bingo. Therefore, it’s no surprise that it has become an important weapon in the arsenal of crypto users wishing to protect themselves against thieves. It’s possible to encrypt a crypto wallet, as well as the device it’s being accessed from, such as a smartphone, which should help to keep most thieves out. However, it’s important to use a strong password, but at the same time, it mustn’t be one that is ever going to be forgotten. If there is a need to keep a copy of an encryption password, we would recommend using a reputable password manager app.
Offline storage
We already mentioned keeping only small amounts in a crypto wallet for daily use and storing the rest of your funds elsewhere. Well, the perfect place to store it in is, of course, an offline wallet. Offline wallets, also known as “cold” storages, have the highest levels of security available which makes them ideal for long-term savings. As an offline wallet isn’t connected to a network, it is the most secure wallet type around, especially if backups and encryption are also applied.