Cryptocurrency is a digital or virtual currency that uses cryptography to secure and verify transactions and control the creation of new units and are stored in crypto wallets which are software programs that allow users to securely store, send, and receive digital assets. As with any form of digital asset, it's essential to protect your crypto wallet from theft and fraud.
Because of this crypto wallet, a lot of people are afraid to take risks regarding cryptocurrency, questions like “how do I start? “How do I know that it's safe and my money is secured?” Well, here are a few tips on how to secure your crypto wallet.
1. Choose a reputable and reliable wallet
It is important to search first the different types of crypto wallet and which of them is more reputable or in other words a wallet that can be trusted. Choosing a wallet is crucial and confusing. Most wallets are classified as hot and cold wallets.
Hot wallets are connected to the internet. Not only is it easy to set up but it is also the most accessible. Although it is user friendly, it poses more risk.
On the other side, cold wallets are the ones stored offline like in a hardware or vault. It is used for long term holdings and unlike hot wallets, it is hack resistant.
Look for wallets that use industry-standard security protocols, such as SSL encryption, two-factor authentication, and multi-signature authentication to secure your wallet and also, as a protection method, only a small percent is stored in hot wallets while being able to trade directly from their cold storage devices.
2. Use strong passwords and secure your seed phrase
Using a password that is easy to guess is not advisable. Make sure to use passwords that are unique, sometimes it could be something not related to you so it would be hard to guess for people who would try to open your wallet. You can either use a password manager or avoid using the same passwords for different platforms.
Seed phrase is a series of random words that contains data that are needed in recovering a crypto wallet. You can either write it down or store it in a secure place. Never share your seed phrase.
3. Enable two-factor authentication (2FA)
2FA is currently used in cellphones and other devices that are needed to unlock the device. In crypto wallets, it is important to enable 2FA to add layers to security. Some wallets that have 2FA are coinbase, Gemini, Ledger, and Trezor.
4. Keep your wallet software up to date
Crypto wallet providers frequently update wallets or software to fix bugs and update security. Being updated with your wallet software gives you more security and would allow you to have the latest security patches.
5. Be aware of phishing scams
Phishing is a popular type of scam nowadays wherein someone would send emails that appear to be from a well-known source. Scammers often use social engineering tactics to trick users into giving away their sensitive information. Always be mindful especially when someone is asking for your wallet details and double check the address or details of the sender before clicking messages, links, or providing details.
Following these tips can help you secure your cryptocurrency wallet and provide you with peace of mind. While doubts may still arise, taking steps to ensure the security of your wallet can help protect you from scams and hacks. It's important to remember that the online world can be unpredictable, so it's essential to stay vigilant and informed about potential risks. By being aware of these things, you can reduce the likelihood of falling victim to fraudulent activity and keep your crypto assets safe. Make sure that you are always updated when it comes to software updates and such. We, the Kave Guild Community, are always here to deliver truthful, accurate, and time-relevant news/contents that would help you in your crypto journey.
