Crypto Asset Protection Tips for Beginners
Cryptocurrencies were designed to decentralize financial services. Cryptography allows users to store and transfer value securely across networks and borders. Today, there are thousands of different types of blockchain, each with its own features, security measures, and technical advancements. At the same time, the number of Dapps has exploded, and more are coming every week. As a result, you're likely interacting with multiple blockchains, potentially through multiple platforms. You need to understand how to protect yourself against attacks on those networks, as well as keep your private keys secure.
Ways to Protect Your Crypto
Cryptocurrency is a new way for people to store value online. It's also a great investment opportunity, but there are risks involved. Keeping your cryptocurrency safe is essential if you're going to invest in digital assets.
Here are some basic tips on how to keep your crypto assets secure.
1. Set up two-factor authentication (2FA)
2FA is an extra layer of security that requires users to enter a second code when logging into accounts. It's especially helpful for websites where you need to log in with sensitive information. Google Authenticator is a free app that generates codes for different services. You can use it to generate codes for Facebook, Twitter, Gmail, Dropbox, and more.
2. Backup Your Seed Words
Your seed words are what create your wallet and allows you to send funds from your exchange. You should never lose these words. Instead, write them down and store them somewhere safe. It might seem unnecessary but if your wallet gets lost then you would lose all of your funds. A hardware wallet is arguably the safest method of storing your seed words. Keep them offline and away from hackers.
3. Use a Strong Password
You should always use strong passwords, especially when using exchanges, wallets, and websites. Passwords should contain at least 8 characters to be unique, and contain a mix of upper/lowercase letters, numbers, and special characters. Be careful what you write down, especially your password. Never give your account details to anyone because losing access to those details could mean losing access to your coins.
You should use a different password for every service you use. Hackers try to figure out passwords by looking at similar services like Facebook, Gmail, Netflix, etc. By changing your passwords often they won't be able to crack one without knowing a couple others.
4. Use a Hardware Wallet
Hardware wallets allow you to store your private keys offline, protecting against hackers and malware. They also offer better protection compared to software wallets. If you plan on investing heavily in any cryptocurrency, then this is a must. Keep your seeds safe by backing up your wallet on multiple devices.
5. Be careful when using public Wi-Fi networks.
Public Wi-Fi networks are convenient, but they aren't secure. Hackers can easily intercept your communications by connecting to these networks. If you use a public network, make sure to only connect to websites that you trust.
