User Security and Responsibility in Cryptocurrency

November 11, 2020
yb
cryptocurrency, security, password protection, online wallets, offline wallets

The main reason crpytography was invented was to secure transactions and make it hard for hackers to interfere with transactions. However, it may be a shock to some that a lot of users still sign up to cryptocurrency accounts with very weak passwords. That is why we have compiled some ways to stay safe when creating your first account.

Creating Different Passwords for Different Sites

When signing up for an account, a lot of people can get lazy with creating passwords because of the millions of sites you have to remember it for. However, when your money is at stake, this is no time to slack on password security. DON'T use the same password you use for every other site. Make your password unique and difficult to guess. There are tons of password generators out there to help you create one that is not easily guessed by a would be hacker.

Do Not Auto Save Passwords

There are many browser extensions that you may use to keep passwords in the same place But do not sacrifice convenience with risk. Sometimes the best way can be a simple pen and paper. There are different ways to store your passwords and wallets. We will look at them both.

Online Method

As stated above, the online method requires you to have passwords and login info. On the other hand, need to do everything in your power to prevent someone from having the tools to access any of your crypto accounts. Look for exchanges and websites that allow for email or phone notifications when there is account activity. Most will allow you to freeze your account if something suspicious is happening.Another popular method is 2 Factor identification (2fa) to access sites. Most sites prefer you to have 2fa to help you secure your accounts and will explain the steps to enable you to give your online presence and currency security. I recommend using your smart phone to enable text verification wherever possible to ensure you know what is going on with your accounts at all time.

Offline Wallets

When you create an offline wallet, you normally receive a ONE’TIME PDF that you can save to your computer and also print copies. This PDF normally has the scan code you can scan to send and receive money, your wallet address, and your security password. The downside of saving to your computer of course is the possibility of your computer being compromised, your hard drive failing, and files your forgot what the hell you named them.

This is where the paper copies of your wallet come in. These copies can never be hacked unless someone came and physically took them from where you stored them and knew what to do with them. This is a great method for storing your currency though I recommend storing them in waterproof bags and a copy at different secure locations if possible. Fires, floods, and other disasters that could happen is the main reason for this.

In addition to paper wallets, many manufacturers make external USB wallets and vaults that you can connect to computers to move your currency on and offline and then remove it and put in a safe place. The downside of this way is the same as with the paper wallet method but you also have to worry about the condition of the USB external drive.

Buying, selling and trading digital currency can be fun and make you money. But you want to make sure that no one else but you can access it.

Looking for an Exchange? Try starting out with Crytopia!

By

yb

November 11, 2020

Securing your cryptocurrency, securing your crypto currencycryptocurrency, security, password protection, online wallets, offline walletsSecuring your cryptocurrency, securing your crypto currency

yb

David has a passion for cryptography, collectibles and helping people to form their own opinions.