Posted By Raj Singh on 01/01/2018 in Internet

Ten Steps to Protect your Cryptocurrency Wallet

Ten Steps to Protect your Cryptocurrency Wallet

The rage of Bitcoin, Ethereum and other cryptocurrencies in 2017 have been making wild jumps in value and hyping out investors and cynics alike. Naturally, the figures have sparked talks of a cryptocurrency bubble from experts, but that doesn’t seem to be deterring potential investors.

Because of their irreversible transactions, the difficulty to pin robbers and the painful fact that you can’t rest your password once you forget it, cryptocurrency wallets come with a lot of risk. They require a great deal of security, and even more monitoring on your side. 

Check the current price of Ethereum here

Try these expert-backed strategies to better protect your cryptocurrency wallet.

  • Make regular backups to the cloud, and backup to different locations for more safety. Have more than one backup actually, as experts recommend, on external hard drives and USB sticks. An offsite backup is also a must.
  • Use encryption for your wallet. Since it’s based online, and third parties can have access to a list of all transactions from your address, encryption is more than a necessary option. It comes with good options too: You can encrypt the entire system or user space where the wallet files are stored. Go for top rated encryption software like Veracrypt and open containers for storage
  • Open a different email for your new cryptocurrency wallet on any exchange, and ensure you create a long, difficult password only you can remember
  • Avoid conversations about cryptocurrency on social media, and more especially, sharing your email and password with other traders on social sites. Social media hackers can easily steal your wallet information from these sites without your knowledge.
  • Use different exchanges for your cryptocurrency investments and have a different email and password for each. Diversification is key when it comes to bitcoin and other cryptocurrencies, especially now that exchanges can also be hacked into. (Bitfinex, a popular centralized exchange was hacked recently)
  • Take your wallet off the internet. Most hacks and cryptocurrency thefts occur on the internet. If you aren’t carrying out regular transactions (as in, you’re following a buy and hold strategy), create a cold wallet that operates off the internet. Cold wallets are used to store bitcoins offline until you choose to trade with them again.
  • Set a strong ass password. That of course is a no brainer.
  • Long, varied and made up of letters and numbers is what your password should be, not a simple eight-lettered word everyone can guess. Cryptocurrency wallets are targeted by expert hackers everywhere, so think deep when creating a password.
  • Close your mobile wallets. In this era of highly valuable cryptocurrency, having loads of coins on your phone is only going to draw you more trouble. Experts recommend that if you close any mobile wallets you might have, especially if they hold large sums. If you must keep a mobile wallet, have only little sums ($20-$50) in it at all times.
  • Finally, get a good antivirus for your computer and use two factor authentication for access. Your wallet deserves every form of protection possible.