Unless you have been living under a rock, you have at least heard of the cryptocurrency giant that is Bitcoin. As for cryptocurrency overall, it has seen unparalleled growth in recent times.
From individual traders to big corporations, everyone has started to give it a shot. And when you see the benefits that blockchain technology provides to cryptocurrency owners, all things align to make the growth all the more obvious.
To put things into perspective, you get an automated system that is streamlined and programmable. As a result, you end up saving a lot of data and time. Furthermore, the transactions done through this technology are also quite transparent.
In terms of security, cryptocurrency outclasses banks by a long shot too. However, you must realize that even blockchain technology is vulnerable to cyber-attacks. If you are not careful, all your digital assets might well be sent to the abyss of no retreat. This is why we are making this list of the 5 best ways cryptocurrency can be stored securely:
1.Encryption using a VPN
Transparency is always welcomed no matter where you go. Everyone likes to know exactly how their assets are processed with any ecosystem. While untouched assets are quite safe in blockchain, things go south very quickly as soon as you make a transaction.
All the transactions in cryptocurrency can be used to track the user’s IP address. This leaves your crypto wallet open for hackers and scammers to see and use it for malicious purposes. Therefore, we recommend that you hide your IP address whilst engaging with cryptocurrency.
While there are several ways to hide your IP address, we highly advise that you do so by using a VPN. A Virtual Private Network (VPN) is a cybersecurity service that allows users to hide their IP addresses from the public.
Subsequently, all the data that you use while browsing the internet also remains secure and completely immune from cyberattacks. Other than the security benefits of using a VPN, you are also able to access foreign websites in a Virtual Private Network. In simple words, one of the best tools to have in your arsenal if you wish to keep your cryptocurrency safe.
2. Choosing a reliable E-wallet
Your bank acts as a wallet where you keep your money/assets to keep them safe. In the cryptocurrency world, this is done using an E-wallet. An E-wallet is usually a trading exchange wherein you get to rearrange your assets by putting them into the coins that the exchange offers. As cryptocurrency has grown, so has the number of E-wallets.
If you wish to trade/hold cryptocurrency securely, we recommend that you certainly choose a highly renowned E-wallet. Not only will you be offered a greater number of coins to trade with, but your assets will also be safe from cyber-attacks.
3. Enabling Two-Factor Authentication
Two-factor authentication has become quite common in modern applications. However, most users tend to skip past these security tools just to save time. Well, this could turn out to be a big mistake especially considering the financial investment involved in cryptocurrency. If you are a user of a reputable crypto exchange, your E-wallet likely offers such a security tool too.
Enabling two-factor authentication is similar to adding an extra layer of protection to your account on top of a conventional password. In simple words, each time you log in from an unknown device (or a device you signed out from), you will be summoned to process a two-factor authentication. Since this authentication requires you to log in to your E-Mail account/use your phone, it puts hackers into a very tricky position.
4. Using a multi-signature account
Several banks tend to offer joint accounts for their users to use. Due to this, all the assets within the account are managed in a much more collaborative way. Crypto exchanges also offer such a tool.
A multi-signature account is a cryptocurrency account that is owned by multiple users. Therefore, you get the benefit of managing your assets in a team-based ecosystem. But what makes it an extremely useful tool for keeping your assets secure is the fact that each time you log in, all of the authorized users must approve of it for it to be successful. As a result, hackers can’t gain access even if one of the users loses their account keys.
5. Backing up your wallet data
Unlike your conventional bank accounts, cryptocurrency owners get full access to their account data. Though not all crypto exchanges will allow you to backup your account data, a lot of them do comes with such a service.
Now and then, you can backup all your crypto data and store it in a cold wallet. If there is a software failure, you would just need to use your cold wallet and all of your lost money will be returned in an instant. In short, a great tool to keep your crypto safe.
A big technological change is upon us and cryptocurrency is going to be its frontrunner. While no one is forcing in to get in on the action, we highly recommend that you realize how fragile your assets are if you already have.
For the most part, you can rely on blockchain technology to keep your cryptocurrency much secure than physical assets. But even with such advanced technology, you are vulnerable to cyber-attacks. If you wish to keep your crypto safe, we highly advise going through our list of the 5 best ways you can store your cryptocurrency safely.