By | March 26, 2020
[Total: 1   Average: 5/5]

Have you just started trading in Bitcoins? Do you know how to keep your crypto assets safe from hackers and criminals? The truth is that cryptocurrencies like the Bitcoin are a prime target for hackers since keeping their digital footprints hidden is easy. A decentralized digital currency will not be under the control of any centralized bank or government authority; so, an investor will basically have nothing to do even if his account has been compromised. But, here are some ways you can stop this from happening:

Bitcoin For Beginners: How To Protect Your Cryptocurrency Holdings

  • To start with, you must do your own research and choose the right kind of wallet to store your assets. Crypto wallets will not be like physical wallets, although they both have the same purpose. Usually the wallet is encrypted with a powerful password but if this gets lost, the assets cannot be retrieved. Hardware wallets are basically physical wallets that have your private keys and definitely the most secure storage. But, at the same time, if you lose or misplace this, your coins are lost forever.
  • You can never keep all your crypto assets in one location. If an exchange gets hacked for some reason, you can be safe provided your investments are spread across multiple storage places. This strategy may be more time-consuming and tedious, but it is undoubtedly safer.
  • It is best to trade in small amounts when you start out so that you do not come into the radar of hackers searching for big crypto players. Even beginners can trade like a pro using automated bitcoin trading software applications like bitcoin revolution which was recently introduced in the market.
  • You must not use simple passwords like what you use for logging onto social media sites when storing your crypto coins in a wallet. It is advisable to opt for exchanges which demand dual-factor authentication. This eliminates chances of frauds.
  • You must also keep backups of your wallet’s private keys. This is safer and should be done from time to time, particularly when you have made a transaction. You must store this in the cloud and in a hardware wallet locally to avoid any chance of misplacement.
  • You must only use wallets from reputed sources because some offering apparently attractive features may be actually malware. A regulated exchange will be safer and likely to have stringent security mechanisms in place.
  • It is advisable to store coins in a cold wallet when you are a beginner in Bitcoin trading. There is a strong threat from hackers who target online crypto exchanges all the time to steal money. USB devices come with buttons that users must press to cancel or confirm transactions; this ensures that hackers cannot record your keystrokes.
  • It is but obvious that you should only use strong passwords that cannot be guessed. Criminals will use highly-sophisticated password cracker tools to hijack accounts. So, when your password is unique and varied, the harder it will be to crack it.
  • When storing coins to protect them you must only use reliable and secure networks. For instance, using a public Wi-Fi connection to transfer Bitcoins is absurd. You must engage in transactions only when you are on your dedicated PC and no other accounts are on it.
  • Finally, you must stay mum about your investments to keep them private. Cyber thieves are constantly searching online forums, social media, and sites to get their targets.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

code