Securing your cryptocurrency wallet
Digital assets behave in much the same way as cash. If you misplace your physical wallet, your cash is gone for good. Same goes for crypto. If you lose access to your wallet, or if someone else gains access to your wallet and sends your cryptocurrency to another wallet address, you cannot retrieve lost or stolen assets.
Protecting your cryptocurrency wallet is critical. Without proper security measures in place, you risk losing your investment for good.
In this article, we’ll go over a few of the key steps you should take when securing your wallet. Please keep in mind that this is just a starting place. It’s a wise idea to conduct a little more research.
During the setup of your wallet, you were most likely given a series of random words. Collectively, these are known as your recovery seed.
If you forget the password to your wallet, your recovery seed is the only way you can regain access. In other words, without an accurate recovery seed, your assets will be locked away - forever.
When recording your recovery seed, take your time. Triple check your typing/handwriting. One spelling mistake, one typo, one inconsistency is enough to sabotage your recovery efforts. It is crucial to remember that if someone has gotten hold of your seed words they can access your cryptocurrency. So keep it secure and only share it with people you want to be able to access your funds if you lose the copy you have stored offline somewhere.
If you use an online password manager, do not add your wallet password. If you store your passwords on any internet-connected device - in a word doc, note, spreadsheet, or any other program - do not add your wallet password there, either.
Instead, write your password down on a piece of paper, and store it somewhere safe. You could even write your password down on multiple pieces of paper, and hide these away in geographically separate locations in case of a fire or natural disaster.
Many wallet providers offer additional security settings. We suggest activating the following right away:
Two-factor authentication. This feature will usually send a random code to your smartphone or email address, which you must enter in addition to your password when logging in to your web-based wallet.
Secondary password or PIN. If you have the option to add a secondary password or PIN to your wallet, do so. Remember to write down this password/PIN on a piece of paper.
As we mentioned in the ‘Password’ section above, it’s vital to keep your security details (recovery seed, passwords, PINs, etc.) off internet-connected devices.
Attackers have created malware that scans infected computers, tablets, and smartphones looking for cryptocurrency wallet passwords. CryptoShuffler is one example.
The protective measures above are a great starting point. We encourage you to continue investigating wallet security, so that you can protect your digital assets against forgotten passwords and malicious users.
You’ve done your homework. You’re now ready to take the plunge and become a part of the crypto community. Bit Trade’s intuitive trading platform makes buying and selling cryptocurrencies quick, easy, and most importantly, secure. Sign up now.