Ever since the rise of popular coins like Bitcoin and Ethereum, cryptocurrency has become a worldwide investment opportunity. However, certain security risks come with investing in digital currencies. So before diving headlong into the world of crypto, you need to do your research and understand how the entire community works. In fact, some even consult crypto advisors throughout their investment process.
One of the most important aspects to consider is cryptocurrency security. Is it safe enough to put your money into? How could you keep your digital investments secure? And what security methods do you need to practice?
It might be overwhelming, but don’t worry because this guide will help you start your crypto journey while protected from hackers.
Security in Cryptocurrency
Blockchain technology, crypto’s major foundation, provides a secured digital ledger for all transactions. And although crypto’s backend process is quite complicated, rest assured that all transactions are being recorded into the blockchain. In addition, all transactions are also being time-stamped for transparency.
And because of blockchain technology’s complexity, hackers typically have difficulty accessing it. As a result, you can count on crypto to be pretty secure. However, some cyberattacks still take place within the community.
In addition, what makes crypto different from banks is whenever your crypto asset gets stolen or lost, there’s no possible way to retrieve it. So it’s common knowledge only to invest money you can afford to lose.
Crypto Security Standards
Cryptocurrency security standards pertain to security requirements that cryptocurrency systems need to follow. It encompasses crypto exchanges, web applications, and mobile transactions.
The cryptocurrency security standards are composed of ten principles that will provide users with more flexibility and security in the community. These are:
Creation of your crypto wallet (either hot or cold; although most enthusiasts prefer cold)
A detailed key compromise policy
Keyholder’s grant or revoke policy and procedures
3rd party audits
Data sanitation policy
Proof of reserve
You should only engage with information systems that have these standards for your safety. Moreover, it allows end-users to make intelligent decisions regarding purchasing, selling, and investing. It also provides customers and investors a guideline to follow when allying with companies.
How To Stay Safe In Crypto
Before investing, you should check these security tips to ensure that your crypto journey will be a safe and pleasurable experience.
Cold Wallets Are Safer
You might have already heard of crypto wallets and that you can choose between hot and cold. But did you know that most experts opt for cold ones? The primary reason behind this choice is that it’s a hardware wallet that doesn’t require an Internet connection. As a result, it’s considered the most secure digital wallet because it can’t be hacked online.
It’s incredibly similar to a USB device that you can carry wherever you go. However, you should store it in a safe place to ensure that it won’t get lost easily.
Backup Your Wallet And Private Keys
In crypto, you can never be too safe. So make sure to backup your cold wallet and private keys. And for good measure, back them up again. Having plenty of backups will make you feel more secure regarding your assets. And do your best to keep these backups in different safe places. So if ever one goes missing, your remaining backups will remain safe.
Stronger Passwords Are Better
In crypto, you should remember that your password is the most crucial investment aspect. If you lose it or another person gets a hold of it, consider your assets gone. So it’s essential to use the most robust password you can think of — don’t just use your birthday or anything easy to figure out.
Another thing to consider is investing in a two-factor authentication method. So if ever someone was able to crack your passcode, you still have another layer of the log-in interface that’ll stop the hacker from getting inside your assets.
Only Use Secure Internet Connections
Never try to connect to public Wi-Fi because anyone can browse through your internet activity. They can attain viable information regarding your cryptocurrency account and use it to steal your assets. Only connect to Internet connections you know you can trust.
Constantly Update Your Software
Keeping your software up-to-date is relatively significant because it will keep your crypto assets safe and secure. If your wallet runs on non-updated software, hackers will see you as a prime cyberattack candidate. Moreover, software updates will eradicate bugs and amp up security protocol.
The entire crypto community runs under a set of safety guidelines — Crypto Security Standards. It provides a relatively safe community where users can grow their money. However, most of the hard work still falls on the hands of users. It’s up to them — you to keep your cryptocurrency assets safe from hackers who only want to make some quick money.
Remember: staying updated with the latest crypto news will keep you safe from hackers’ technological advances. Check out our other blogs if you want to know more about crypto, security, and digital currencies.