With the invention of the first cryptocurrency, the world’s finance and economy fields have changed dramatically. New levels of safety have been unlocked and the worlds’ approach to financial instruments and money needed to adjust to the new circumstances. What do we mean by this? When the power of third parties has been excluded, and when everyone realized that money could be stored in a different way, that is when the whole investing and saving mentality has changed. And is still an ongoing process.
One of the first things that cryptocurrencies such as Bitcoin and the ones that came later have guaranteed (and still do) is the safety of your money and the complexity of hacking your crypto account or in other words your crypto wallet. Although the best way to store BTC and other crypto is by storing it in on a USB or a popularly called – hard wallet, which can be any offline tool for storing your crypto keys – it can be a piece of paper too (paper wallet), the most common ways to store your crypto still are online crypto wallets that are a part of big crypto trading platforms. What is the reason behind this? Not only creating a cold wallet is more challenging and requires a certain level of knowledge and skills, but people also find it more complicated and less convenient since there have been cases where cold wallet items have been lost, keys forgotten etc.
On the other hand, having a hot wallet or an online wallet where you can store your cryptocurrencies, works almost the same as having your account on any platform, and you only need to remember your login info, which simplifies the whole process significantly, for the majority of people. Also, it is easier to trade crypto this way, especially if you choose a reputable and trustworthy platform such as Crypterium, and you can be sure that everything is immaculate, whether you intend to buy or sell your crypto.
The internet connection makes things a lot easier, since finding the cryptocurrencies of your choice, along with the purchase or selling, can be done in a matter of minutes. This is not all, since crypto exchange platforms offer tips and tricks, certain types of analysis and help make predictions and advice their users about the investments they should make, which many people find extremely useful, especially if they are newbies in this field. Although you can do all the research by yourself and monitor all the changes on the market by yourself, it still is a lot easier if someone does it for you, and especially if it is an automatic process.
But the benefits of having an online wallet are not the only thing you are getting if you opt for this option. Besides from all the amazing benefits, there are certain downsides that you will most likely get as well. One of them is the possibility of a hacker attack, and the changes of your funds being compromised and lost.
Although crypto is being considered as the safest way to invest money and also save money – since the money that’s been invested this way doesn’t depreciate in value over time (there is no inflation, and is a better option than traditional savings), over time, certain ways to hack even this type of investment, have been found. Knowing that, what is there to be done, and what can you do about it? Let’s dig into it.
Always Use a Secure Connection
Although using a Wi-Fi network may seem like a good idea when it comes to crypto exchange, but this is the last thing you should do. It is convenient to connect your phone tablet or laptop to a Wi-Fi and you can still do it, but only if your internet source is your home network, and not a public one. Still, even if this is the case, you should always use a VPN since you don’t want your personal data as well as your IP address and your location to be exposed to thieves and hackers, because if this happens, they will most likely steall your money and your personal info which is that this something that you don’t need. By using a simple VPN tour you’ll be able to make it harder for hackers to find you.
Swith to Cold Wallets if You Can
As we’ve already mentioned the best way to store your crypto is by storing them offline. When there is internet connection, there is always a chance for your blockchain keys to be exposed. It may seem like a challenge – remembering your keys and finding a way not to lose your paper or USD drive wallets, but by putting a bit of extra effort in the process, you are making sure that your money stays yours, and stays safe.
Confuse Hackers
Hackers user technology to get your money but still, the harder you make it for them, the chances that your money will be stolen are lower. By creating multiple digital wallets you can split your investments and if one of your accounts get hacked, the rest of your money will be safe. If is also useful knowing that there are no limits when it comes to your digital wallets, so you can create as many as you want and protect yourself and your money.
Use Two-Factor Authentication
Adding additional steps when it comes to the security of your wallets is a smart thing to do, because the more barriers you make, the harder it will be for the hackers to access your accounts. However, adding your phone number and getting SMS notifications might not be the best option so you need to explore everything that’s available and pick the safest one.
Make a Strong Login Info
Creating a special email address for every of your digital wallets is something you should definitely do. If it seems too complicated this means that it will be equally complicated for hackers as well; and finally, don’t forget to create extremely strong passwords just like you would for any account you have (but even stronger).
Skip the Suspicious Platforms and Offers
Don’t click on everything you see. If it sounds too good to be true, it means it probably is. And be especially careful about the exchange platform you are about to create an account on.
