8 Essential Security and Privacy Measures for Cryptocurrency Holders

There are numerous benefits associated with Bitcoin, one of which includes the unprecedented freedom it offers from traditional banking systems. This concept of decentralized finance eliminates the need for banks altogether. However, cryptocurrency security is still in a very precarious position. Although the technology itself is crypto-safe, scammers are finding more and more tricks to take advantage of the human factor. Our crypto tips will help you stay safe and trade cryptocurrencies risk-free.

Essential Security and Privacy Measures

#1 Avoid public Wi-Fi

Public Wi-Fi is often regarded as a convenient service, but it is crucial to refrain from engaging in any exchange or wallet transactions while connected. Hackers can effortlessly intercept data transmitted over the network, including login credentials. It is strongly advised to avoid connecting to any financial services on public networks. However, you can protect your PC from viruses using command prompt. While using the command prompt for virus removal, it’s crucial to follow the provided instructions carefully to avoid potential data loss or system instability. For more reliable virus protection, consider using reputable antivirus software with real-time scanning capabilities.

#2 Use complex passwords

For many readers, this tip may seem obvious. However, nowadays, it is common for the three most frequently used passwords to be 123456, 123456789, and the password that is almost comical. In one’s password, it is advisable to combine uppercase and lowercase letters, numbers, and symbols. The longer the password, the stronger it becomes. Online password testers can be used to assess the strength of one’s password. It is also recommended to utilize a password generator for obtaining random passwords.

#3 Activate VPN

You need a VPN for crypto trading so that the data is not intercepted while it is being sent. They can be intercepted by owners of Wi-Fi networks or hackers. A good crypto VPN, on the other hand, not only protects all data but also makes you anonymous. One of the flagships of the market is VeePN, you can start using VPN from it. By spoofing your IP address, high-tech VPNs prevent you from being tracked.

#4 Enable Two-Factor Security

Another important factor to consider is enabling two-factor authentication wherever possible, particularly for email and any financial-related activities. One recommended method of 2FA is using the YubiKey, which is a flash drive that generates OTP codes. It is worth noting that even with 2FA via email, a skilled hacker might still find ways to bypass it, especially if the victim has not implemented all of the above-mentioned security measures.

#5 Beware of phishing scams

Phishing scams are a common method used by hackers to steal credentials for traditional online banking as well as cryptocurrency exchanges and wallets. These scams involve creating false websites and apps that closely resemble the original ones. Users are often fooled into thinking they are accessing a genuine site or app and unknowingly entering their personal information. This allows the hackers to gain unauthorized access to their accounts.

#6 Securing your seed phrase

One of the most crucial considerations for managing crypto is ensuring the proper storage of the seed phrase, also known as a recovery phrase. This twelve-word phrase enables the recovery of crypto on another device. Hence, it is of utmost importance to securely store the security phrase and prevent unauthorized access. Different perspectives exist on how to store the seed phrase. One method is committing it to memory, although not foolproof. Moreover, it is recommended to split the twelve-word phrase and store it in multiple locations, such as several fireproof safes. Some individuals suggest involving trusted individuals to assist with memorization, allowing a close companion to manage a portion of the phrase and distributing it among several people. However, others strongly advise against disclosing any part or all of the seed phrase to anyone else.

#7 Don’t store your cryptocurrency on exchanges

This is perhaps the most common mistake made by cryptocurrency holders. The word “exchange” already hints at the purpose of these platforms—they are meant for exchanging, not for storing your cryptocurrencies. Regardless of the strength of your crypto security, failing to hold your crypto renders it useless. The majority of stolen Bitcoin has been due to exchange hacks, rather than hacking of the cryptocurrency itself. Typically, hackers target smaller exchanges that lack security measures, although larger exchanges have also been affected.

#8 Keep your devices safe

This cryptocurrency security measure greatly depends on the individual’s Bitcoin holdings. As a general guideline, it is recommended to consider purchasing a cryptocurrency hardware wallet if the Bitcoin holdings exceed $500. The market offers a wide range of hardware wallets to choose from. Cryptocurrency hardware wallets are widely recognized as the safest method for storing digital assets. These specialized devices are designed exclusively for crypto security. The private keys are securely stored within an impenetrable circuit, allowing users to sign transactions with a simple click. Additionally, these wallets offer a seed phrase to facilitate the transfer of private keys in the event of device theft or loss.

Conclusion

Cryptocurrency security requires attention to detail and a robust strategy for protecting funds. From creating strong passwords to using two-factor authentication and activating VPNs, there are many essential security measures that must be taken seriously when engaging in any crypto activity. Moreover, it is imperative for users to refrain from storing their assets on exchanges and opt for hardware wallets instead.