And keep your software – especially anything crypto-related, like that of your hardware wallet – up to date. To avoid falling victim, always check URLs to make sure you’re on the correct site. That’s where they get you to enter your password or private key on a fake version of a real website. Hackers are also famed for their “phishing attacks”. A successful hacker can pretend to be you, reset your passwords, and log in to your accounts to steal your funds. This could be your email address, your phone number, or anything else that can be used to prove you’re you. Social engineering is when you’re tricked into exposing personal information that allows a hacker to steal your identity. Make sure your email accounts are secure – especially your linked “forgot-my-password” backup accounts.Īll of these security practices are meaningless, though, if you get tricked into giving up the goods willingly.Use a password manager and/or different passwords for different sites.Store sensitive information (such as your recovery phrase) in a secure offline location, like a safety deposit box.
Don’t rely solely on SMS verification – your phone number can be ported to another device. Use two-factor authentication (2FA) on all accounts.Regardless of which method you use to store your crypto… There are several best practices for any kind of information security – and they’re of paramount importance for safely storing cryptocurrencies. Information security is a hot topic encompassing everything you do online – from social media to emails, usernames, and passwords.
How to be safe when storing cryptocurrency?
Security level: By now, you’ll appreciate the importance of security, so look out for a high-quality security chip in your wallet – ideally one that’s certified as such.If your hardware wallet is lost, stolen, or damaged, you haven’t necessarily lost access to your crypto: a recovery phrase will let you get to your coins, via a digital wallet or a new hardware wallet. A recovery phrase: This is a code (up to 24 words) that stores all the information needed to recover your wallet.The precise level of security you get from a hardware wallet will depend on its features, so it’s worth digging into your provider to make sure that you’re comfortable with the level of security and control on offer.Ī few things to look for in a quality hardware wallet: It’s worth noting that not all hardware wallets are the same. The wallet itself is secured by a 4-to-8-digit PIN – and the device will erase after several failed access attempts, preventing physical theft. It’s backed by security experts and keeps your private keys offline – so your crypto is inaccessible to anyone but the holder of specific access codes.Īs you’ll recall from part two of this series, hardware wallets work by generating a set of private keys, which you ought to keep safely offline. Using a hardware wallet – sometimes called “cold storage” – is widely accepted as the most secure method for storing cryptocurrency. What’s the best wallet to store cryptocurrency safely?