Cryptocurrency is a hot commodity. Unfortunately, it’s also a hot commodity for thieves. In fact, in recent years, there have been many scams, thefts, and hacks that have left people with nothing to show for their crypto investments.
Cryptocurrencies are decentralized and not regulated like fiat currency, so there is no bank or government to protect you.
This means that the onus of responsibility falls on individual investors to take measures necessary to safeguard their investments. Here are some ways that you can safeguard your cryptocurrency from thieves.
Understand how cryptocurrency works
Cryptocurrencies are digital currencies that do not require a bank or government to regulate them. You can send, receive and store cryptocurrency in a digital wallet. Unlike fiat currency, cryptocurrency is decentralized.
This means that the onus of responsibility falls on individual investors to take measures necessary to safeguard their investments. Here are some ways you can safeguard your cryptocurrency from thieves:
- Store your private keys offline and out of reach from hackers
- Keep two copies of your private key
- Keep your public key address hidden
- Use secure passwords for all your accounts
- Find out who is behind the company before investing in their ICO
Create a safe storage space
One of the best ways to protect your crypto is by creating safe storage space. You can store your coins on a digital wallet, which should be stored in a safe place that’s not easily accessible to thieves.
A good way to safeguard your coins is by storing them with a trusted family member or friend or at a bank or credit union where you have an account.
Use a good password and two-factor authentication (2FA)
You can safeguard your cryptocurrency from thieves by using a good password and two-factor authentication. The first step is to select a strong password that includes upper and lowercase letters, numbers, and symbols. Make sure you also use a different password for each one of your accounts.
The second step is to set up two-factor authentication on all of your cryptocurrency wallets. Two-factor authentication requires anything that you know (your password) and something that you have (a special code sent to your phone).
This makes it harder for anyone who might try to break into your account by guessing or cracking your password.
Set up an antivirus software to safeguard your device
One way to protect your crypto from being stolen is by installing antivirus software on your device. There are many free antivirus software options available for your phone, laptop or desktop computer.
Antivirus will scan your device for any malicious software that could steal your personal data or cryptocurrency.
Malicious software includes spyware, ransomware, and Trojan horses. These can be in the form of an email attachment, a fake website, a pop-up window, or an ad on social media. It’s best to use an antivirus with real-time protection and automatic updates as these will help you detect new malware before they become an issue.
Update your security measures regularly
It’s important to take security measures to protect your cryptocurrency. This includes updating your browser and antivirus software, installing malware blockers, and using both a strong password and two-factor authentication when you log in.
It’s also important to be aware of the people with whom you share your information online. You should never give out your password or other security details without knowing who you’re dealing with.
How to safeguard your cryptocurrency from thieves
Here are some ways that you can safeguard your cryptocurrency from thieves:
- Use a hardware wallet like the Trezor
- Encrypt your computer and mobile devices
- Invest in a VPN service
- Use two-factor authentication
- Enable Google’s 2-step verification (2FA)
- Make sure your passwords are strong and unique -Keep an offline copy of your private keys -Move small amounts of bitcoin to third party exchanges only when necessary
Keeping your crypto safe on the go
One of the first ways to safeguard your cryptocurrency from thieves is to keep your crypto safe on the go. Most people store their crypto investments in mobile wallets that are accessible via apps on their smartphone.
The problem with these types of wallets is that they are susceptible to hacking. Mobile phone operating systems can be hacked and accessed by cybercriminals, which means if you store your crypto on a mobile phone wallet, it could be stolen.
To make sure that your crypto is safe for travel, you should always use a hardware wallet like a Trezarcoin wallet or Ledger Nano S.
These wallets work like a USB drive; they allow you to store your private keys offline away from hackers or thieves who might be targeting your phone or computer. The Trezarcoin Wallet can even generate new public addresses every time you log in, so you’ll never reuse an address and put all of your eggs into one basket.
Practice good password hygiene
If you have a secure password, you are far less at risk of being hacked. Use a long and complex password that includes numbers, symbols and upper and lowercase letters. If you’re not sure what constitutes a good password, check out this article for some tips.
Beware of phishing sites and malware
When you’re looking to make a trade or purchase on cryptocurrency, be sure to navigate through secure and trusted sites. Do not trust links that are shared through social media.
This is especially true if the link looks suspicious, is third-party, or campaigns certain investment offers. When clicking on links, look for signs that the site is verified by a security badge (ex: https://www.coinbase.com).
Additionally, always be cautious of fake sites that look like the real thing but have a different URL than the one you expect (i.e.: https://www.coinbase.com vs [email protected]).
Websites can also be infected with malware when downloading files or opening links in emails which may lead to phishing sites (or worse).
How to Protect Your Crypto from Thieves
There are many ways to protect your cryptocurrency from thieves, but one of the most effective tools is a hardware wallet. These wallets are physical devices that store your private keys and other information needed to access your cryptocurrency.
Hardware wallets provide a safe alternative to storing your cryptocurrency on an exchange or in a digital wallet like Exodus.
The Types of Attacks
There are three types of attacks that can be carried out on cryptocurrency. The first is a phishing attack, which is when someone sends an email or text message to get you to share your private key with them. Once they have that, they can immediately send it so your money to their account and you’ll never see it again.
The second type of attack is called a “smash and grab” attack, which is when someone grabs one of your devices and runs away with it while the device has some form of crypto on it.
This includes all smartphones or computers. And finally, there are brute force attacks. These are when someone hacks in and tries hundreds or thousands of different passwords until they get lucky enough to guess the right one.
Cryptocurrency 101
Cryptocurrencies are very different than the typical currency you might have in your wallet. It is decentralized and not regulated by a government or bank, which means there is no protection for individual investors.
The onus of responsibility falls on individual investors to take measures necessary to safeguard their investments. This means that anything from using a virus scanner, to having multiple backups of your holdings and being extremely careful about who you give your private key to, can help protect your cryptocurrency investments.
Encrypt your device
One way to safeguard your cryptocurrency from thieves is to encrypt your device. Encrypting your device means you’re securing your data by encoding it with a password or key. You can encrypt any type of file, but when you encrypt your device, you’re protecting all of the information on it from being accessed by unauthorized or unwanted individuals. This includes cryptocurrency!
Keep your private keys offline
One of the most important ways you can safeguard your cryptocurrency is to keep your private keys offline. To do this, upload your public keys to an online wallet and keep your private key in a secure location. Keeping it offline ensures that even if someone hacks into your computer, they would be unable to access your private key without first hacking into the physical location where you store it.
Another way you can safeguard against thieves is by storing your cryptocurrency in a hardware wallet. Hardware wallets are small devices that securely store private keys and allow you to make transactions without having to rely on an internet connection or software wallets.
Hardware wallets make it much more difficult for a thief to steal because they will have to gain access not just to the device but also to the PIN code.
A third way you can safeguard against thieves is by using cold storage wallets, which are designed specifically for cryptocurrencies. These types of wallets generate an address that is stored on an offline computer and only connects with another computer when transactions need to be made. This prevents theft because the cold storage wallet has no internet connection and therefore cannot be hacked remotely.
You can also safeguard against thieves by monitoring transactions closely every time you make one. Whenever sending money through digital transaction channels, monitor where it’s going as well as how long it takes for the transaction to complete. If there is any indication of an issue, report it immediately so that appropriate action may be taken quickly.
Update your security measures regularly
If you are storing your cryptocurrency in a digital wallet, then it is important to regularly update the security measures. For instance, if you are using a 2-step verification process for your bank account, it’s possible that a hacker will be able to steal from you by gaining access to both your bank account and your cell phone number.
Hackers can do this by calling your cell provider, who will give them access to your phone number if they say that they have lost their phone and need their SIM card replaced with a new one. Alarms should sound when an unfamiliar number calls claiming to be from your cell provider.
To protect yourself against these hackers, set up two-step verification on your digital wallet as well (if it doesn’t already have it). This way, even if someone gets into one of those accounts mentioned above, they won’t be able to get into the other account without going through the extra step of logging in.
It’s also worth changing up passwords regularly and not saving them anywhere that someone else might find them like on a computer or notebook – instead use password management software like LastPass or Dashlane.
These are a few basic steps that people can take to safeguard their cryptocurrency investments against thieves – but different circumstances will call for different solutions. The most important thing is to remain vigilant of potential threats and take action when necessary.
Keep your eyes open for scams
One of the best ways to safeguard your cryptocurrency is by staying vigilant. Fraudsters are aware that crypto is a hot commodity, and so they try to take advantage of newcomers.
If you see something that seems too good to be true, it probably is. Be careful about clicking on links in emails or messages from people you don’t know, or files that may have been sent from an unknown source.
Keeping your crypto safe on the go
Keeping your crypto safe on the go is one of the more difficult aspects of digital investment. After all, we don’t always have a laptop computer or desktop PC nearby to store private keys and passwords. However, thanks to mobile apps like Mycelium Wallet, it’s possible to store your private key information securely on your phone.
Mycelium Wallet is an easy-to-use app that helps you manage your bitcoin without transmitting any data over the internet. Mycelium encrypts all of its data locally so that only you can access it.
This means that when you sign a transaction, only your phone will see what you’re doing. No one will be able to steal your private keys from their computer if they’re sitting next to you or if they break into your home.
If you absolutely must use an online service for storing information about your cryptocurrency holdings, then you should encrypt any sensitive data with a strong password before uploading it anywhere vulnerable.
Be sure not to use dictionary words in your passwords and avoid using public Wi-Fi networks for accessing sensitive information about cryptocurrencies – thieves need only be in close proximity to intercept data being transmitted wirelessly from insecure networks.
How to safeguard your account
- Use a strong password and never reuse it
- Enable two-factor authentication
- Set up alerts for unusual activity
What is Coinbase?
Coinbase is a popular cryptocurrency exchange and trading platform. It functions as a digital wallet and also has an integrated exchange that supports fiat, Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and more. The company was founded in 2012 by Brian Armstrong and Fred Ehrsam.
How to set up Coinbase
Coinbase is a popular exchange for buying and selling cryptocurrencies. It’s not only accessible through their website, but it also has an app for both Android and Apple devices. Setting up Coinbase is simple.
All you need to do is provide your name, email address and the account password you created when you signed up for Coinbase with your email address.
A security tip that many people don’t know is that they can set up two-factor identification on their Coinbase account to increase the security of their account with a secondary passcode. This will help to protect against hackers gaining access to your account by using your login information that they obtained from another site.
You can either buy a hardware device like Google Authenticator or use an app like Authy. When you sign in, you’ll have to enter a six-digit code before you can gain access to the site.
The two-factor identification means that even if someone were able to get into your email and find out what password you’re using, they won’t be able to log in without access to the second code as well. The secondary code needs to be generated off-site and not provided in any other way to make it difficult for hackers