If you are apart of or looking to take part in the current rise in Cryptocurrency, you better be ready to take the steps to actively secure it.
Cryptocurrencies, such as bitcoin, ethereum, dogecoin, etc., are electronic currencies that exist exclusively online. These can be exchanged for dollars, but also many companies are beginning to accept cryptocurrency as another form of payment for everything from something small, to bigger purchases like a car or house.
Similar to stocks, and after Bitcoin began to boom in 2017, people try to buy crypto either at its starting point or as it drops, in order to be along when the value increases.
While in the past cryptocurrency needed be mined in order to get your own stake, the prevalence has made it so that many applications, such as CASA, allow you to buy a part of or a whole coin with your local currency. This allows anyone to participate and work towards owning a whole coin, or multiple
The nature of cryptocurrency is to create an online currency that anyone can use. Through this process you are given a unique number for your account, and in the early days this was probably stored on an external drive or a piece of paper.
Because you essentially are acting as your own bank, if you lost access to this number, there was no way for you to access your funds again. The result is extreme security, but also a chance to lose everything you gained.
As cryptocurrency has gotten bigger, there are now more options to offer extra steps for security as your wallet gets bigger.
Cold wallets, unlike hot wallets, are not connected to the internet and hence are not vulnerable to cyberattacks. Keeping your private keys in a cold wallet, also known as a hardware wallet, is the safest choice because these wallets are encrypted. This can be anything from documents stored on an external drive, to a piece of paper in a safe with your account information.
To protect against newly identified vulnerabilities, make sure your device is up to date with the newest virus firewalls. You can prevent hackers from exploiting the flaw by building programs to target the vulnerability, furthermore use a robust antivirus and firewall to increase your device's security.
You can diversify your bitcoin investments by using numerous wallets because there are no restrictions on wallet creation. Use one wallet for daily transactions and another for everything else. Store these wallets in separate places so that your funds are not all accessible at once if something happens.
When it comes to security, the value of a strong password cannot be overstated. For added protection, use two-factor authentication (2FA) or multi-factor authentication (MFA).
Store your external hardware wallet, whether it is a standalone device, an external drive, or a specifically made crypto wallet, these can still be susceptible to EMP's, Wifi hacks, and more.
Adopt these methods to ensure that your cryptocurrency is safe.
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