How to Protect Your Cryptocurrency

In this guide we will answer all your questions on how to keep your crypto safe and give you a list of simple cyber security practices, everyone should follow. 

Security - how to stay safe
Security - how to stay safe

Best Practices to Keep Your Crypto Safe

Use a Cold Wallet for your Crypto

Cold wallets are not connected to the internet unlike hot wallets, therefore they also not prone to cyberattacks.

Use Secure Internet

Make sure your internet connection is secure and use a secure VPN connection. Avoid public networks.

Maintain Multiple Wallets

Diversify your crypto investment across multiple wallets. Use cold wallets for funds you do not need to access and multiple hot wallets for the crypto you use for dApps, buying NFTs etc. Do not put much of your crypto in online wallets – only what you want to use. Store the rest of your crypto in a hardware wallet. Split your funds among many hot wallets (online wallets) and cold wallets (hardware wallets).

Protect your Passwords

Never ever share your passwords or passphrase. Choose strong passwords and do not use the same passwords. Change your passwords regularly. Store your passwords and passphrase offline – safe and secure.

Beware of Phishing

Avoid any unknown or suspicious links. Do not click on links, sent via Discord/Email/etc.

Protect your Devices

Keep your antivirus software active – on your computer as well as your mobile device.

What are warning signs for high risk dApps?

  • Guaranteed great returns with little danger of failure.
  • Deny decentralized and transparent operations while making claims to the contrary.
  • Irrespective of market conditions, a steady stream of returns.
  • While claiming to be working with well-known wallets and exchanges, they are not.
  • When asked critical questions they will mute you or kick you out of the channel.
Forsage and Etherchain are examples of high-risk dApps that resemble pyramid schemes or Ponzi schemes. The above are some of the most notable warning signs.

How can I protect my cryptocurrencies?

When it comes to protecting your crypto, a wallet is one of the greatest methods to go. However, new wallet designs are being introduced on a regular basis. Hardware devices appear to be the better of the two.

Coins and tokens can be stored in these “cold” wallets, which seem like USB drives. Private keys are password-like codes that allow you to decrypt your hardware wallet and access the coins or tokens it holds. While hardware crypto wallets are extremely successful against digital hackers, there is a risk: If you lose your password key, you most likely won’t be able to access the wallet’s contents again

These wallets are also not the best choice, for the funds you would like to use in dApps, as you will need to have them on your web3 wallet for direct usage.

security

What is the safest crypto wallet?

Crypto wallets are generally safe irrespective of the brand. However, available popular safe crypto wallets include hot wallets like Trust wallet and Metamask as well as cold wallets like the Ledger Nano S or Trezor. The latter wallets especially have a reputation for keeping your crypto assets safe from theft by hackers while warm wallets will be useful for instantly exchanging one cryptocurrency for another and accessing dApps. In short, the safest crypto wallet you can own is a cold wallet (hardware wallet) but the best option is to use multiple hot and cold wallets.

Besides utilizing cold wallets there are many practices that further increase your safety, follow the following steps:

FAQ

What is the safest way to store my cryptocurrency?

Cryptocurrencies currencies can be stored in the hands of third parties, or they can be stored on an online platform that only the user has access to, such as a centralized exchange like Binance. The many crypto exchanges which you may utilize have shown to be prone to security breaches, therefore it makes sense to keep your cryptocurrency out of these accounts and stored on a cold wallet (crypto hardware wallet).

Popular hardware wallets:

  • Ledger
  • Trezor

Currently this is the safest way to store your crypto. When ordering such a wallet, be sure to order them directly from the original seller and avoid Amazon or other retail services.

Is it safe to keep crypto on Coinbase?

Coinbase remains one of the safest web wallets you can use to store your crypto, despite the fact that no online exchange is completely secure. Nearly all of Coinbase’s assets are stored in cold, non-accessible storage to prevent or reduce the possibility of a hack.

Can you get scammed on web3?

All over the internet, you’ll find scam schemes and fraudulent entities involving cryptocurrencies and Bitcoin. Also, it can be tough to tell apart a crypto scam from a legit crypto investment opportunity because scammers improve their techniques often. Forget about the safety nets that banks and other financial institutions provide – this is still like the Wild West and with freedom comes responsibility. You are responsible for keeping your information and funds safe.

Are dApps safe?

DApps are more secure than traditional applications since they don’t have one point of failure, unlike single-server apps. Security for dApps is crucial since they run in a completely distinct environment and work in a different way.

When it comes to choosing trustworthy dApps, you can come to us for anything gambling related or use other sites such as Rugdoc for DeFi dApps.

Julien Ross
Written by Julien Ross verified symbol Crypto Enthusiast
23 Articles

Julien is a digital experience writer and storyteller building bridges between his new love for the crypto space and his passions for remote work, travel, and entrepreneurship. He is the owner and operator of Content by Design and Blockheads! Creative. This all means that he’s able to seamlessly shift between the different passions in his life. His writings about crypto are all tinged with his love for creativity and desire to share his knowledge with the world. The world of travel and working remotely means that Julien has the ability to easily keep up to date with all of the latest innovations within the world of crypto. As a byproduct of that, he then uses his flexible working life to ensure that the latest info is shared with our readers. Of course, he also shares knowledge through his other business interests. He’s been able to build up a huge amount of experience when it comes to teaching others. Whether it is organizing conferences and bringing in the best keynote speakers or even leading talks himself, Julien has enough expertise to back himself in any situation. With crypto being a big part of his life, it wasn’t a surprise to us that he wanted to join our team. His desire to keep growing his own knowledge base, while also sharing what he knows with others, means that this is the perfect home for him. We feel as though it is our pleasure to have Julien on the team. His level of knowledge and attention to detail means that he can provide the very best content for our readers. This ensures that our dedication to providing high-quality and detailed reviews is followed up by Julien. The skills that Julien has developed as a storyteller mean that he will always lead to the right path.

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Reviewed and Fact Checked by Vlad Hategan , NFT Gaming Specialist