Regardless of how much money your cryptos are worth, the most important thing is to keep them safe. “Why should you keep your cryptocurrency safe?” is the question we’re often faced with and Jason Guck, one of three 5Linx founders, who has invested in cryptocurrency for over 10 years helps us answer this question.
It’s understandable to wonder why you should deal with crypto security when some investors claim that Bitcoin is the world’s greatest financial solution when it comes to financial safety.
Mr. Guck explains that cryptocurrency, like other asset classes, serves as a means of trading and storing wealth. A cybercriminal, for example, has the potential to steal your Bitcoin. These guys are getting smarter, stealing more than $100 million from DeFi operations alone in 2020.
While cryptocurrencies are secure in general, the weak point in the equation is someone you would not really expect: you.
Fortunately, there are a variety of methods to mitigate these concerns. In this article, Jason Guck provide you five fast recommendations for guarding your cryptocurrency and avoiding a potentially devastating situation.
- Put your crypto in a Cold Wallet
Cold wallets, unlike hot wallets, are not connected to the internet and hence are not vulnerable to hackers. Keeping your private keys in a cold wallet, also known as a hardware wallet, is the most secure option because these wallets are encrypted.
Jason Guck gives the example of the Japanese exchange BITpoint, who identified an unlawful multi-million dollar withdrawal from its hot wallet in various cryptocurrencies targeting over 50,000 customers in 2019. Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Ripple were among the five cryptocurrencies kept in the exchange’s hot wallet. However, BITpoint stated that the incident had no impact on its cold wallet or cash reserves.
- Use a secure internet connection
Use only a secure internet connection and avoid public Wi-Fi networks when trading or conducting crypto transactions. Use a VPN even when connecting to your home network for added safety. Your IP address and location are masked using a VPN, which keeps your browser activities private and secure from malicious hackers.
3.Have many wallets
You can diversify your crypto investments by using numerous wallets because there are no restrictions on wallet creation. Use one wallet for daily transactions and another for everything else. This will safeguard your cryptocurrency assets and reduce the risk of a security compromise.
- Keep Your Personal Device Safe
To protect against newly identified vulnerabilities, make sure your personal device is up to date with the newest antivirus software. To prevent hackers from exploiting the defect by writing code to target the weakness, use a powerful anti-virus and firewall to enhance your device’s security. Jason Guck adds that it is better to be safe than to be sorry.
- Make it a habit to change your password on a regular basis.
When it comes to security, the value of a strong password cannot be overstated. According to a research, three-quarters of millennials in the United States use the same password on more than ten different devices, applications, and social media accounts. The majority of them were also using the same password in over 50 different sites, according to the report. Make sure you have a strong, complicated, and incredibly hard password that you update on a regular basis. If you have many wallets, use different passwords for each. For added safety, use two-factor authentication (2FA) or multi-factor authentication (MFA).
Final Thoughts
The cryptocurrency sector is always changing, and it is solely your duty to safeguard your digital cash by shielding your wallet with necessary security features. Mr. Guck strongly advises to stay current on the most recent and updated news, hacking techniques, and defense strategies.
For more info on how to safely invest and store your cryptocurrency, visit https://jasonguck.com/