With the price of Bitcoin (BTC) rising to an all-time high, many new names, with or without experience, have entered the cryptocurrency market.
With the cryptocurrency community waiting for more records in the near future, the security of crypto assets has also come to the fore. Because the security of crypto currencies primarily depends on the user. Consequently, there are a few simple steps to ensure that users with cryptocurrencies like Bitcoin can make secure transactions:
1 – Use paper or hardware wallet
Because Bitcoin basically allows you to “be your own bank”, the responsibility for cryptocurrency storage is also mainly on the users. A popular phrase in the crypto community, “if the key is not yours, Bitcoin is not yours,” means that the owner of the wallet’s key sequence is the owner of the coins.
Wallets offered in various forms including software, hardware and paper have their own security features.
As can be understood from their names, software wallets are software products that enable cryptocurrency transactions by installing applications on users’ mobile devices or computers. There are many types such as web, desktop and mobile wallets.
While software wallets are generally free and easy to use, they are not completely secure as most are connected to the internet. This makes them vulnerable to cyber attacks and security breaches. Users should keep their apps updated to reduce the potential risk of breach.
A paper wallet is a piece of paper with a crypto address written on it and a private key in the form of a QR code generated from paper wallet websites. These codes can be scanned to perform cryptocurrency transactions. A paper wallet is highly resistant to online cyberattacks and is often cited as an alternative to cold wallets.
For detailed information: What is a Crypto Money Wallet? What Are The Types Of Crypto Money Wallets?
Another secure method for cryptocurrency storage, the hardware wallet isolates personal user keys by storing them offline on the USB-connected device. Hardware wallet, known as cold storage or cold wallet, makes private keys immune to cyberattacks. They are mostly used for high security, as they are completely offline. Names like Trezor and Ledger are considered to be the most popular hardware wallet providers.
2 – keep two-factor authentication (2FA) turned on
Make sure you turn on the two-factor authentication (2FA) feature in the security settings of your wallet account. 2FA sends an additional password request to your phone or email every time you log into your wallet. By enabling the user 2FA feature, cyber attackers are prevented from directly accessing the wallet. The risk of cyber-attack is reduced as the hacker will have to physically access the user’s phone or email.
3 – Never share your private key
Never share with anyone the “seed” sequence used to recover your personal keys or forgotten password. If you do, you are actually giving the keys to the safe. Keys never ask for your information, even when reputable crypto companies help solve your problems.
4 – repeatedly check buyer wallet information
Always check the recipient’s address before proceeding. One letter error can redirect your transaction to another wallet. Unlike some traditional financial services, most cryptocurrency transactions are irreversible. Some malware can also change the destination of your crypto. That’s why you should double check the transaction details.
5 – don’t be fooled by raffle or bonus scams
Never be fooled by offers like “Send us bitcoin and we’ll send double it back”. In such attacks called “Giveaway”, various famous names, politicians and crypto money phenomena are imitated and users’ crypto money is stolen.
6. Make small transactions and use different exchanges
When you need to trade on any cryptocurrency exchange, don’t make big transactions at once. If you have to transfer a large amount of money, it is better to split it into several smaller transactions.
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DISCLAIMER: The statements contained here are not investment advice. Never trade without researching the markets thoroughly and without comments from different circles. Read the comments of the investors you trust and consult their opinions. Remember that every trading transaction involves risk. Make your own decision when taking any action. Cointelegraph cannot be considered directly or indirectly responsible for any damages or losses arising or allegedly arising from investment products or services.