Most people hear the word “crypto assets” and assume it’s a fancy way of saying “money.” That’s not the case. Crypto assets are electronic information; if you secure them properly, you can retain everything. Securing your crypto assets is the best way to protect the money you have invested in cryptocurrencies. Cryptocurrencies are inherently vulnerable to theft and fraud. Here’s how you can securely store cryptocurrencies so that your money doesn’t disappear into cyberspace forever:
Decide which assets to secure.
You’ve probably heard about the importance of securing your crypto assets. It’s a great idea; it doesn’t matter whether you’re starting out or already an experienced investor.
The first step in securing your crypto is deciding which assets you want to connect:
- If you have different types of cryptocurrencies, storing them all in one wallet may not make sense.
- If that’s the case, it’s essential to choose a reputable wallet provider with a good reputation and many positive reviews; this way, there won’t be any doubt about how trustworthy they are.
Use a cold wallet to store your private keys.
If you’re investing in cryptocurrency, chances are you know all about private keys. If not, here’s a quick refresher: a private key is like the combination to your safe or vault—the only way to access your crypto assets. In this case, the vault is an online wallet storing cryptocurrencies (like Coinbase).
The safest way of securing crypto assets is on an offline wallet that can’t be hacked. Cold wallets are hardware devices that randomly generate private keys and store them securely until needed. On the other hand, hot wallets are software wallets hosted online and connected to the internet 24/7; hackers can quickly get access if they breach your security measures.
Use multi-signature for cold wallets.
To make your funds even safer, use multi-signature wallets. These are usually implemented through a multi-signature smart contract where the owner has to approve any transaction to be executed. This is an excellent feature for cold wallets where you frequently don’t have access to them. Multi-signature wallets require at least two signatures from among three signers before approving a transaction; the third party can be either an individual or an institution.
Multi-signature works as follows: when you initiate a transfer from your wallet, it will check if there are enough signatures available for transactions to proceed; if not, it will wait until they are all collected and only send out the funds using all three keys associated with that account! This way, no single user can get access without the approval of another two people who own keys themselves – thus preventing theft attempts even if one person loses his private key or gets hacked by malware installed on his computer system – making multi-sig cold storage truly secure against any attack!
Keep your hardware safe.
The next step is to store your hardware in a safe place. Set up password-protected login screens, PIN codes, fingerprint scanners, and other security measures.
Keep in mind these tips:
- Never leave your hardware unsupervised; even if it’s locked with a password, there may still be ways for people like hackers or thieves to gain access!
- Never leave your hardware unprotected in public areas like cafes and bars where others could pickpocket it from you (or worse). Try leaving it at home instead of carrying it all day long — this will also help prevent theft!
Back up your private keys.
If you’re going to store your private keys and cryptocurrency on a computer, you should ensure it’s protected. Keep all your private keys using a USB drive and an encrypted USB drive. Suppose you don’t have either of these items. In that case, your second best option is a paper wallet. Try considering using a password manager program like LastPass or 1Password.
Encrypt your password and back it up at least twice.
Passwords are the first security line for all crypto assets; thus, securing them is essential. After all, if someone steals or guesses one of your passwords, they can access everything in your wallet. An excellent way to avoid this scenario is by encrypting each account and the entire vault itself. This means that even if someone could brute-force their way past one layer of protection on their computer.
Certain crypto assets can be done in these steps.
- Decide what assets you want to connect. Please list all the cryptocurrencies, tokens, and coins you own and keep them somewhere safe. If an exchange holds your investments for you, contact them immediately and ask for access to your private keys or a list of all addresses for which they have custody.
- Store private keys in cold wallets and use multi-signature for cold wallets. A cold wallet is a device that has never been connected to the internet, so it’s safe from hackers trying to get access via malware or viruses on computers connected online. Multi-signature refers to requiring more than one person to sign off on transactions before they’re executed so no one person can steal money without help (and therefore with less risk).
- Keep hardware safe by storing it in lockable boxes where only authorized people can access it – don’t leave devices around where they could be stolen! Also, ensure you keep backup copies of all passwords used when accessing hardware wallets; if something happens while traveling abroad (such as losing luggage), this will always ensure an alternative way out even when everything else fails!
