Best Ways to Secure Your Cryptocurrency
Looking for ways to secure crypto? Good, because the need is dire — in 2021 alone, cybercriminals stole a whopping $14 billion in cryptocurrency from crypto exchanges and online wallets. Desperate times call for desperate measures (read feasible solutions to protect your crypto). And we’re here to help you with that. Read along to find out all about cryptocurrency security.
Although many believe the crypto market to be secure, it has actually faced some significant threats. Even popular legitimate platforms often fall prey to scammers. For example, the PoliNetwork decentralized exchange was recently compromised due to one of the largest cyberattacks that resulted in over $600 million loss. The thing is that all transactions are stored on a distributed public ledger. You also leave an IP footprint at crypto exchanges and other platforms. This can lead to data breaches. Can you do something to boost crypto security? Sure thing!
How to secure your crypto wallet
As any serious trader knows, keeping your cryptocurrency secure is paramount. So, let’s go through the best ways to secure your crypto.
1. Buy crypto from a reputable source
Fake cryptocurrency websites can make you lose a lot of money. Such sites try their best to pass as a legitimate cryptocurrency exchange, either an already established platform or a new one. They tend to have similar, yet slightly different domain names from the legitimate websites, making it hard for users to see. Therefore, to make sure you’re on the right website, always double-check the URL spelling. Check certificates, the team (if such info is available), and basically anything that verifies the platform’s legitimacy.
2. Store crypto in multiple cold wallets
Exchanges are surely useful because they let you buy and sell easily, without having to find a user for each crypto you want to operate. Keeping cryptocurrency there can seem safe at first glance. But it’s actually not. Not from a cybersecurity perspective, at least. Exchanges can be the target of hacker attacks, phishing, and other dangers. Besides, some platforms can halt withdrawals, especially during downturns. The best option would be to store your crypto independent of exchanges: in multiple wallets, preferably cold, or hardware, wallets — offline cryptocurrency storage. Ideally, you should store most of your crypto across several cold wallets, while keeping only a small portion of it in a software wallet.
3. Avoid public Wi-Fi
Find public Wi-Fi tempting? So do hackers! Doing crypto transactions on open networks makes you vulnerable — your neighbors on public Wi-Fi can easily intercept your traffic. They can often detect if you’re visiting crypto sites and can even see your transactions. This won’t necessarily let them steal your crypto, but your crypto activity out in the open for scammers is certainly not appealing.
4. Create a strong password
American cybersecurity firm Digital Guardian did a poll where 61 percent of respondents said they use the same password across several websites. While 89 percent said they were sure about their password management practices. However, having the same password on various platforms is a no-go. If you want to secure your crypto, create complex and unique passwords. Changing them from time to time is also a good idea — go for at least a few times per year.
Back up your seed words and create a different password for your wallet, as well.
While setting up your wallet software, you’ll most likely be asked to back up your seed words. If you’re new to crypto, skipping this step may be tempting. But you shouldn’t do it.
Note: Seed words are a series of random words generated by your crypto wallet during its setup. You can use them as an emergency backup to recover your account. Anyone with access to your seed words can access every account tied to these words.
If you don’t back up your seed words, you will lose access to all your cryptocurrency the moment your device crashes. So, it’s better to write them down on a physical piece of paper and keep it in a safe place.
5. Use two-factor authentication
There isn’t such a thing as “too much security.” So, you should boost it with whatever means available, like two-factor authentication (2FA). Good news is that it’s present on most crypto exchanges and similar platforms. 2FA requires you to provide at least two verification methods, for example, a password and an SMS code, to access your account. This certainly makes breaches less likely.
6. Avoid fake software
With booms in crypto, an increase in fraudulent apps isn’t far behind. Yes, hackers can steal crypto by luring a person to download a fake wallet or use a fake app. For example, there are plenty of fake versions of the popular Ethereum wallet. Scammers go as far as advertising these fakes on social networks. To avoid this type of scam, download a wallet from the developer’s official website only. That said, you should avoid click-through ads online.
7. Secure your Internet connection
This may be obvious, yes, but using secure Internet while logged into your crypto accounts is key. For maximum safety, consider investing in a Virtual Private Network (VPN). A good VPN will encrypt all of your data and hide your web activities from snoopers. Need more details? We’ve got you covered.
VPN for crypto
So, in what way a VPN for crypto is good, exactly?
- VPN encrypts all the data you send and receive, making it harder to intercept.
- VPN adds an extra security layer against malware, viruses, and phishing attacks.
- It hides your IP address and prevents tracking by third parties, like hackers or government officials. This way, you can anonymously buy and sell crypto.
- A reliable VPN doesn’t store your logs and has a kill switch, which helps keep your anonymity (more on that in a bit).
Note: Came across a free VPN? While tempting, this may not be the best choice. Free VPNs for crypto tend to profit from selling your private data and bombarding you with ads. If you are serious about your privacy and security, it’s better to get a premium VPN instead.
How to choose a VPN for cryptocurrency
What should you look for in a VPN for crypto, in particular? Let’s find out.
- A strict No Logs policy. For doing crypto transactions, go for a privacy-oriented VPN that doesn’t collect and store your personal information. This means your activity remains private.
- Kill Switch. This feature cuts your Internet connection when your VPN connection drops. All to prevent third parties from accessing your real IP address.
- Absence of mass surveillance programs. Top-rated VPN providers typically come from countries where there are no surveillance agencies. For example, VPN services based in the US, UK, Australia, New Zealand, and Canada may be forced by the state to hand over user data. These countries are also known as the ‘Five Eyes’ alliance. Whereas countries like the British Virgin Islands, Panama, and Switzerland don’t force VPNs to collect and store user data.
- Simultaneous protection for multiple devices. If you do crypto transactions on several devices, you should protect your crypto on each device. That’s why it’s crucial to choose a VPN you can run on multiple gadgets with one account only.
The good news is that a reliable VPN that has it all is more than real.
VeePN — a top-notch VPN for crypto
We’ve got just the VPN for you. Based in Panama outside the 5/9/14 Eyes jurisdiction, VeePN is the most advanced and trustworthy VPN for crypto enthusiasts. The service follows a strict No Logs policy and protects all your data with AES-256 encryption — the most robust to date. This means you can browse the web even on public networks and be sure your data is protected. Besides, VeePN has an automatic Kill Switch, as well as premium features like Double VPN. The service also accepts cryptocurrency payments. At the moment, you can pay with Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Dash (DASH), Monero (XMR), Zcash (ZEC), and Bitcoin cash cryptocurrencies. Better yet, do you own several devices and want to protect your crypto transactions on all of them? No problem — you can have up to 10 simultaneous connections with just one VeePN subscription!
Scammers will most likely come up with more ways to steal crypto. So, enhanced security is your go-to. One way to hold your crypto and keep it safe is with VeePN. Test-drive the app and start (or continue) investing securely. Just like that.
What is the safest wallet for cryptocurrency?
Some of the top picks for secure crypto wallets are MetaMask, Trust Wallet, Ledger (hardware wallet), Electrum Bitcoin Wallet, BlueWallet, Exodus.
Where should I hold my crypto?
First, it’d be better not to hold all your crypto on exchanges. The best option would be to store your crypto independent of exchanges: in multiple wallets, preferably cold, or hardware, wallets — offline cryptocurrency storage. Learn more in this article.
Is it safe to keep your crypto on Coinbase?
While Coinbase has one of the safest web wallets, it is never 100% safe to keep your money on any online exchange. Better to take security measures to protect your crypto. Find out more in this article.