The popularity of cryptocurrencies continues to grow, both for investors and organizations. Crypto assets can be used for storing funds and making payments, including cross-border transactions. According to Chainalysis, the total volume of transactions with cryptocurrencies for 2021 is estimated at $15.8 trillion, which is 567% more than a year earlier. That’s why crypto attracts more and more attention from fraudsters who want to steal other people’s funds. Cryptocurrency theft and other crypto-based criminal activity increased by 81% since 2020 and amounted to $14 billion.
Let’s look at the basic rules for protecting your funds. Learn these five tips to increase the safety of your holdings.
1. Safe Wallets are Key
A crypto wallet is a way to store a secret key to access your cryptocurrency. There are two types of crypto wallets: hot and cold.
- Hot wallets are connected to the internet.
- Cold wallets are offline and not connected to the internet. Such wallets have a physical form, for example, a paper wallet and a hardware wallet.
There is no perfect wallet for all occasions; they differ based on what tasks you need to perform. Cold wallets are more reliable for long-term currency storage, and hot wallets are designed for convenient and fast work with buying and selling assets.
Make Sure Your Wallet is Credible
One of the main ways to increase the safety of your holding is to choose a trustworthy wallet that meets the highest security standards, for example, Ownrwallet. OWNR is a secure virtual wallet application designed to optimize your use of cryptocurrency.
Whether you want a reliable instrument for daily transactions or the most profitable way to purchase crypto, OWNR has everything you need. Using this multifunctional wallet, you can store, exchange, send or receive nine coins, operate with all ERC-20 tokens, monitor the change in the price of Bitcoin, and buy cryptocurrencies using a card.
2. Use Credible Digital Currency Exchanges
You need to make sure that the assets you are buying or want to keep in your account stay on a reputable and carefully regulated crypto exchange. When you buy cryptocurrencies through one platform that you trust, it becomes not only safer but also much easier to manage your assets.
A reliable cryptocurrency exchange can ensure the liquidity and security of your investments and even help to avoid fraud. When choosing an exchange, be sure to consider such factors as security, liquidity, commissions and fees, availability in your region, transparent feedback, and technical support.
3. Use Two-Factor Authentication
Your passwords must contain at least 16 characters and be especially complex and unique to your accounts. In addition to strong passwords, use two-factor authentication (2FA). Try to use the most reliable type of 2FA that the platform allows, ideally a hardware security key. If the service does not support it, use an authentication application such as Google Authenticator or Duo Security.
In case the platform allows only an SMS-based 2FA, at least request a one-time code to be sent to your device every time you log in. Based on this, no one can access your account if they steal your password.
4. Be Aware of Scams
Try not to become a target of scammers. The world does not need to know about the currency reserves in your wallet or what services or exchanges you use. You shouldn’t talk about them a lot on social media networks and blogs.
Try not to fall for the tricks of scammers. Hackers posing as technical support may put pressure on you to obtain account credentials. If someone contacts you and you are not sure that this is a scam, you can contact support via email to confirm if it’s legal.
Fraudsters often create fake websites that look almost identical to real exchanges or wallets but are designed to steal account information. Double-check the web address before logging in to your account or inputting any data.
5. Avoid Sharing the Secret Key
The secret key is used to confirm whether the person sending or receiving cryptocurrencies is the owner of the wallet used. This secret or private key should never be shared. A series of randomly generated words are also used for protection. A seed phrase becomes available to the user during registration and should be immediately recorded and stored in a safe place, preferably offline. Given how easily attackers can gain access to users’ computers and applications, storing a seed phrase somewhere digitally is risky.
When protecting your assets, it is important not only to use the right security tools but also to remain vigilant. Attention to detail, calmness, and rational analysis are excellent assistants in ensuring your safety. In the context of increased fraud cases, these skills play a key role. The precautions that you take yourself make the automatic protection of the system based on complex security protocols stronger. Your goal is to choose a reliable wallet, as well as an exchange with a good reputation. Do not fall for tricks and securely store your data, passwords, and secret keys. Manage your finances wisely and carefully.