Crypto security basics

Cryptocurrencies have opened the door to unexpected opportunities, but they also carry significant risks that threaten your security and financial well-being. To use them wisely and reduce the potential risks, it is vital to adopt the following three basic principles.

Protect your privacy online

The nature of the internet lets information spread quickly, but sometimes it can end up in unwanted places.

There are people with malicious intentions who use reckless tactics to get their hands on your crypto. Most threats are broadly aimed and work like traps, trying to catch gullible people. They don’t necessarily target specific individuals, but if you reveal sensitive information, you may become the target of more focused attacks.

Recommendations:

• Don’t show off your successful trades in public.
• Don’t share old addresses.
• Be careful when mentioning your crypto balances.
• Avoid sharing personal information.
• Prefer encrypted communication channels.

Think long term. The small change sitting in your addresses could become worth much more over time. You could also end up losing your crypto. But does that matter? Attackers, known or unknown, may not take it into account, but it’s worth thinking about.

Protect yourself

Users of the traditional banking system and crypto users often face similar risks and scams. With crypto, however, several factors place the responsibility on the end user, mainly because there is no trusted intermediary and transactions are recorded permanently.

Banks have full control over your money and are considered trusted entities. They are connected to one another and operate under common rules, which makes it easier to detect and deal with fraud. If you run into a problem or make a mistake when transferring money from your bank account, you can usually reverse it. With crypto, by contrast, once transactions are completed and confirmed on the network, they cannot be undone.

It’s important to be careful. Learn about common phishing methods, find out what keyloggers are and get familiar with the common risks of the internet. Knowing these risks will help you keep your digital funds safe.

To boost your security, use strong, unique passwords and enable 2FA on your online accounts. This should be your first step toward improving your overall security.

Never forget to protect yourself from yourself: you’re human, and we all make mistakes. A simple typo when making backups, sending credentials to the wrong address or even one bad decision can put your security at risk and cause real trouble.

Become your own bank

To make sure your crypto stays available and to keep yourself safe, it’s recommended that you keep your private keys offline. Although crypto exchanges are now very secure, it’s a good idea to keep large amounts in a wallet.

For the first time in history, you can own digital wealth as easily as physical cash or precious metals. Unlike other kinds of assets, you can back up your crypto on a piece of paper and access it securely anywhere in the world.

Of course, keeping and protecting the keys to your digital currencies carries risks, as mentioned earlier. Fortunately, there are tools that can help you meet these challenges and fully enjoy the benefits of these new technologies.

The different types of crypto wallets offer different levels of security, ease of use and use cases. Look carefully at the available options and choose the one that best fits your needs.

• Wallet apps (software wallets) offer many features and are easy to use. However, they are less secure because they run in complex, often online environments such as mobile phones or computers. That can give viruses and hackers opportunities to go after your coins. For this reason, experienced users should only use them for smaller amounts.
• Paper wallets are often considered one of the safest ways to store private keys. With them, your keys are written on a piece of paper (or engraved on a metal surface). Although they are secure, they are a bit complicated to use and are usually suited to one-time use.
•  Hardware wallets balance ease of use with high security. These portable devices protect your keys from malware and hackers by keeping them offline. However, they are more expensive (costing $50 to $200) and require physical confirmation for many actions.

Not Your Keys, Not Your Crypto

Always remember that security is never absolute. Keep your knowledge up to date and check the security of your setup regularly, as new risks keep emerging.