Every now and then people keep discussing about the different dangers related to Cryptocurrencies. Recently the Japanese Syndicate got robbed. Hence, it’s very obvious for a person to wonder about the ways in order to keep his cryptocurrency Wallet secure.
Many People’s Dilemma-
As the year passes by, there are more questions raised against the Security of cryptocurrency, rather than the answers to provide a secure platform.
Another problem faced by many is the lack of mere knowledge about crypto or bitcoins. They always tend to wonder why they are not supposed to store bitcoins or altcoins for a long duration of time on either Binance, Coinbase or other in-built exchange wallets.
These people at the same time, tend to have another set of questions dangling in their brains regarding the security or safety issue of their investment in a particular crypto wallets.
In order to answer all the doubts, just keep reading further.
Ways to Keep your Crypto Wallet Secure-
A person must first have a proper knowledge about cryptocurrencies and also he must believe that the investment which he makes on the crypto wallets are as safe as his cryptocurrency wallets.
Here are 3 of the most useful as well as smart ways to secure your crypto wallets and solve the above mentioned dilemma faced by most of the people –
Method #1 – Always Remember to keep Multiple Backups
Isn’t it common to see that every app these days have a backup?
Wouldn’t that make your job easier in transferring your data or in maintaining the old data which could be used later or taken from as archive?
example, WhatsApp. Once you change
your phone, it is common to that you would require all the old data such as
chat conversations, music, photos, videos, documents, etc. WhatsApp has a good backup retaining method which allows
your new phone to get back all your old phone’s data. But it must be noted that
this could happen only if you had backed up your data earlier. The same could
be witnessed in PCs, etc.
With a backup option, one would surely feel relieved and not worry about missing data.
The same needs to be kept in mind with cryptocurrencies as well. You are spending more money as an investment on crypto so why not safeguard the data by backing up the digital money?
But yes, the process of backing up your cryptocurrencies is indeed tricky and could turn out to be confusing at times as well. This is mainly because a person cannot trust or expect a centralised service or a cloud service to do your job of backing up, which happens with all the other apps or devices.
As mentioned earlier, the cryptocurrency could only be as safe as the service, IF it doesn’t get robbed or hacked.
More Insight –
Also, the main aim of crypto was to give the power of such cryptocurrencies such as Bitcoins, Ethereum, or Monero in the hands of the people. So by expecting the centralised or cloud service to handle the cryptocurrencies would mean that you are giving up on your power to those parties, which is a definite NO.
So then how will
you have a backup?
The answer lies in the words ‘offline backup’. This basically means that you need to keep a backup of the private keys offline, i.e. at a place or location which only you would know. The location should also be one which you could easily trust.
What to do if your crypto wallet
is an HD wallet?
The answer is simple. All you have to do is store the seed or the mnemonic phrase at more than two or three locations or places which only you would know. More locations means better security but care should be taken that the places don’t exceed a certain limit otherwise you would tend to forget few locations eventually.
This way you could gain more security because the mnemonic phrase or the mnemonic passphrase at more than 2 places could confused the hacker or attacker. Thus, not letting him access crypto wallet.
should be noted than having a backup of your PIN code or username or even your
password (as few crypto wallets provide all three of these features).
This would save the ones with a bad memory as there could still be a source from which you could refer without giving out much details.