How to Secure Your Cryptocurrency Wallet – 5 Essential Steps
Cryptocurrencies are all rage these days, even kids and grandmas know about them. But what happens when your investment in crypto disappears right in front of your eyes because of a simple breach? To make sure it does not happen – here are 5 essential steps on how to secure your cryptocurrency wallet.
Securing a wallet is not rocket science and you should have no problems in following any steps. It doesn’t matter if you are a newbie investor or a veteran HODLer, security of crypto wallet is paramount.
- Choose a strong password, please
It’s been said time and time again; invest your time to create a strong password. It’s the first step and will give you peace of mind. Most wallets make it compulsory to use a strong password.
But don’t just limit yourself to wallet passwords. Use a strong password for your emails, devices, website accounts, etc. that are associated with your cryptocurrency wallet. Most people only care about the wallet security but forget the effectiveness of password protection for other elements.
- Use a trusted and tried Crypto Clients
You will have lots of client options when dealing with cryptos, but be wary that most of these clients can sabotage your transactions that go to and fro between the wallets.
Choose a client that allows dynamic address creation, performs encryption on the fly, two-factor authorizations and much more. Also, don’t forget to read real user reviews.
- Have separate wallets for savings and transactions
All veteran investors use this trick and you should too. Keep two wallets for crypto transactions and savings. The savings wallet should be kept offline as long as possible. Preferably, it should be a cold storage wallet.
The trading wallet should also have hardware level or high strength software level encryption to maintain secrecy. Keep the password and private keys for both wallets in a safe but accessible offline location. Use the old school way of pen and paper to write down the passwords and store them securely
- Avoid mobile phones
Smartphones and other mobile devices are one of the worst places where you can store your passwords, wallets and perform online crypto transactions.
They can be easily tracked, hacked, and followed. Even physically, they are easy to get stolen leading to data loss. Also, with the multiple open networks it can connect to, it falls short in the security department. So remember, smartphones are not the smartest choice for online crypto transactions or wallets.
- Update your crypto wallets regularly but don’t turn on Auto Updates
Remember to update the software and firmware on your cryptocurrency wallets on regular basis. But never turn on the auto-update features. You are only asking for troubles with it.
When a new update comes, it is better to wait two or three days before moving into the new system. New updates will bring in bugs and stability issues which you would want to avoid at all costs for your valuable investments.
Let the testers use it and iron out any problems that arise. When it receives the green flag from them, update the crypto wallet manually.