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Risk Prevention

As mentioned earlier, there will always be hackers out to steal your cryptocurrencies. However, there are a few ways to protect yourself against hackers and potentially losing your cryptocurrencies.

Remember, cold storage is one way to prevent hackers from stealing your digital assets. Once you purchase your cryptocurrencies from an exchange, you should look into moving it from the cloud to a device not connected to the Internet . That way, you mitigate some of the risk of being hacked online.

Even if your account is secured with a strong password, exchanges could be hacked and they could potentially lose all the cryptocurrencies held on your behalf. Moreover, exchanges are generally not insured, so you will most likely never see your digital assets again in an event of a hack.

Cold storage prevents hackers from remotely stealing your cryptocurrencies since it is not connected to the Internet. Again, the Ledger Nano S and TREZOR are two of the commonly used devices to “store” your cryptocurrencies. You might also consider placing your private keys on a USB drive or external hard drive and storing it in a locker that is fireproof.

Always use multi-factor authentication. If you decide to keep your digital coins on an exchange (make sure it’s only a small amount), you should use multi-factor authentication. If you are not using two or multi-factor authentication, hackers will target you because it’s easier to hack your account that way.

Again, you should always backup your digital assets. It helps to have multiple backups . Your hardware is replaceable but the data is not. Therefore, you should get yourself some USB drives, external hard drives or an air-gapped computer. You should also encrypt these drives, if they offer the functionality. Basically, if one of the drives are lost or stolen, you would not have to worry because you would have multiple backups.

Use trusted antivirus and antimalware software. If you plan to store your cryptocurrencies on a mobile device or computer, you should make sure your computer is free of viruses, malware and Trojans. If it’s not, hackers could potentially have a key logger and figure out the password to your wallet, and they would own your private keys.

Be careful about visiting untrusted websites. You should always be wary of websites when you’re surfing the web. If you’re visiting a lot of untrusted websites on a device in which you have a wallet installed on, you are at risk. Moreover, you should be careful with your Internet connection. If you are using a public Wi-Fi network, such as those at coffee shops, your computer is vulnerable and hackers could figure out your private key.

Avoid email and web phishing scams. The cryptocurrency world has seen an influx of phishing scams, whether it be through Google Ads or emails. Hackers have developed elaborate scams, so you need to make sure the emails you’re responding to or Google ads are actually from a trusted source. For example, some hackers will send emails from an address that looks like it’s from an exchange, asking you to reset your password and verify your information. If you enter your information, the hacker could get a hold of your private key and therefore, your cryptocurrencies.

At this point, you should have a good understanding about some of the ways to prevent some risks associated with storing your cryptocurrencies. Let’s take a look at how you could potentially recover your cryptocurrency wallet.

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