The crypto space has proven to be profitable over the years, but is also a dangerous ground to tread. There are scams, hacks, and everything in between that crypto investors fall into now and always. Crypto investors lost $4 billion to hackers in 2022 alone.
That is a significant amount, and there is almost a zero chance of getting such back. This only shows the extent of danger that investors are exposed to. Such attacks range from those on exchanges, wallets, and other platforms that hackers attack.
However, just because many investors have fallen victim to bad actors doesn’t mean you have to. Here are 6 steps you can take to ensure that your investment is secured so you won’t have to worry about losing it in unfortunate circumstances.
- Use cold wallets: There are different types of wallets you can use for your crypto portfolio. However whichever one you choose, make sure it is a cold wallet. This is because cold wallets are far more secure since they are offline. A huge crypto portfolio in an online wallet cannot be hidden for long, so go for an offline one. If a hardware wallet is expensive, you should consider using a paper wallet which costs nothing but offers similar level of security.
- 2-factor authentication: While it can be tedious and can result in you losing access to your account if anything goes wring with your mobile phone, 2FA is a life saver when it comes to online life, especially investing in crypto. Since it requires that you provide evidence of ownership of the account beyond the password, no illegal person can access your account without you knowing. Use it for added secuity to your investment.
- Use a reputable crypto exchange: The exchange you choose for your crypto endeavors is very important. Pick a crypto exchange with a good reputation and a good security history. For example, an exchange like Kraken has never suffered a hack since it was founded in 2011. Such are exchanges you should use. There are other exchanges that have evidence that your funds are safe, using proof of reserve. Some have insurance cover in case something goes wrong. You should do a thorough research before settling for a crypto exchange.
- Keep your funds off exchanges: While there are secure and trusted crypto exchanges, you cannot guarantee the security of your assets with any exchange. It is therefore advisable that you keep your assets off an exchange, preferably in a cod wallet as stated earlier. That way, you won’t have to worry if your exchange comes under attack. Unless you’re actively trading crypto, you should only transfer your assets to an exchange to sell. If you don’t hold the keys, the assets are not yours.
- Use a strong password: Whether it is your exchange account or your wallet, you always need a password to secure your assets. If you don’t use one, you should create it immediately and don’t use your name. Instead, use something that is hard to guess but that you’ll not forget. Studies have shown that a password made of words, numbers, and symbols is far more secure than just words or numbers. Make this a priority if you wish to secure your assets.
- Beware of phishing attacks: One easy way that crypto can be stolen is through a phishing attack. This is when you’re tricked into providing your account details to a website that looks like your exchange website for instance. You may receive an email with a link and you click on it to provide details which gives the thief easy access to your account. To prevent this, always check that your address bar has a locked padlock symbol to its left and also check that you’re entering a website with .com rather than .net if your website is website.com for instance. It is easy to overlook these details and that exposes many to scams.
Indeed, the crypto space is full of bad actors. However with these security measures in place, you can greatly reduce your chances of falling victim to any of their tricks and you can safely invest in the space.