3 simple ways to protect your cryptocurrency

Speculation and money invested in cryptocurrency attracts many scammers. There are several solutions to secure your coins quickly.

Cryptocurrencies are based on blockchain technology and therefore have a good reputation for being secure currencies. Paradoxically, not a week goes by without the media reporting an occasional astronomical theft of virtual currencies. These fractures often occur during transfers or simply by cornering the owners.

If you, like the majority of cryptocurrency owners, use an online exchange, then at the protocol level you don’t really own your coins. The platform contains your funds and the keys to transferring them. When you decide to withdraw currency, you ask the exchange to sign a transaction on your behalf.

However, all of these services are available online and assume that at some point a third party can disrupt the transfer process. It is possible to transfer your cryptocurrency to your hard disk or USB keys specifically intended for this purpose. The last security solution is still the paper, but be careful not to tear it. An overview of simple ways to protect your cryptocurrency.

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hot wallet (hot wallet)

The easiest way is to download an app on the smartphone. In general, the services offered are very easy to use and suitable for everyday use. It allows for example to scan an address in the form of a QR code to make the transfer faster. The apps on offer are often free, and apps that specialize in security offer affordable plans.

The companies behind these applications use combinations of online and offline server storage to protect user wallets. In general, the new terms of cryptocurrency are also those who offer the most secure solutions.

However, you should be aware that the wallets and keys in the application are connected to the Internet and thus are more vulnerable to attacks. Not recommended for large amounts.

Some recommended apps: Coinbase, Binance, Zen GoAnd Trust Wallet, Exodus, Ku Coin, and MetaMask.

cold wallet (cold wallet)

A cold wallet is a physical wallet, completely offline, for storing coins. In most cases, it is a USB key. Unlike secure apps, these tools are offline and therefore less vulnerable to attack. Coins can remain hot on the switch while there is a panic on the platform. In addition, some companies offer an encrypted wallet to provide additional security. This is the most recommended solution, when the saved values ​​are very high.

3 simple ways to protect your cryptocurrency
Ledger and Tresor, the two market leaders. // Source: Unsplash

Cold Wallet requires a signature for each transaction to confirm that the owner of the coins is indeed the asset. Thus exchanges take a little longer than applications. Count about a hundred euros for a key.

On the other hand, if you lose your device, you will never get your money back. You are always at risk of having your credentials stolen, so you need to make sure that you take proper precautions so that they do not get stolen.

Some recommended brands: Ledger, Trezor, Coolwallet.

paper wallet (paper wallet)

The world of cryptocurrency offers ways, unimaginable just a few years ago, to store money. You can actually print an address to store your coins. The QR code drawn on the paper is used to receive transactions. Obviously, this wallet is considered very secure, as it is offline.

3 simple ways to protect your cryptocurrency
A paper wallet can take this form. // Source: Wikimedia Commons

To create the famous wallet, you have to go to a site that generates a random key. The most famous of them is bitcoinpaperwallet.com or bitaddress.org. You must then click on the Create New Address tab or the Generate Key and Print Paper Wallets tab to create a new address.

To transfer your encryption back, you have to go through an application, and therefore you are likely to take a risk.

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Goodbye Bitcoin // Source: CC0 / Mohamed Hassan for Pxhere

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