New 2019 Cryptocurrency Investors Should Follow These Digital Asset Storage Security Tips
Making Sure Your Crypto Assets Are Secure In 3 Easy Steps
With a rise in security threats at crypto exchanges the world over, the advice of experts still rings true: safely store your crypto. This is essentially about making sure no one else ever has access to your crypto without your say.
- Store Your Own– Storing it through an exchange is almost counterintuitive because the basis of blockchain tech and the creation of the first cryptocurrency, Bitcoin, is for the concept of decentralization. Crypto exchanges are centralizing a decentralized tech product. If your exchange wallet is compromised in any way, you may lose its entire value and never get that value returned to you.
- Passwords– Despite the old words of wisdom to not write your password down, it is even less safe on your computer in this day and age (particularly where money is concerned). There is no single perfect solution to accommodate this. The best options involve splitting up your password into pieces and keeping them safe in separate areas, in both physical and digital form. This includes hiding it amongst other information but that’s really getting into the weeds of it.
- Never Carry Your Password– This is mostly self-explanatory, if any part of your password or the entire thing is written down on a physical piece of paper, do not carry it around with you. Your wallet could be stolen, your pockets could be picked and it is just not a good idea. Your safest bet is keeping it in a safety deposit box at a bank.
These may seem extreme to the average person but hacking is a rising crime that is very difficult to protect yourself from, both on your personal computer and on a larger platform. If you have high amounts of money invested in cryptocurrency, it’s important to protect those assets to the best of your ability. With physical money, you would never keep $100,000 or even $10,000 in your house, it would be safest in a bank. With online money, it is safest where only you have access to it.