How to Protect Your Cryptocurrency
Recently hackers stole cryptocurrency worth millions from a Tokyo cryptocurrency exchange. According to CNN, it could be the largest theft yet of this type of digital currency.
Since this is not the first time cryptocurrency has been stolen, it raises concerns about how best to keep it safe. This may be particularly true for business owners who accept, or plan to accept, cryptocurrency.
However, there are steps you can take to protect your cryptocurrency.
Ramp Up Your Security
1. Cell Phones
Some hackers will troll social media in search of discussions with investors centered around cryptocurrency. If they target your conversations, they will look up your posted phone number and email address.
The next step is to call your cell provider and trick them into transferring your phone number to their own phone. After accomplishing that the criminal can access your business cryptocurrency account by resetting the password.
To avoid this type of attack you can contact your cellphone provider and ramp up your security to the highest level. Add complex passwords and authentication questions only you would know the answers to.
Take a similar approach with your business email accounts. Use the highest levels of security you can and create long, hard to break passwords.
You can also create an email account you only use for your cryptocurrency transactions for your business.
Difficult and complex passwords should also be used for your business computers. Use antivirus software and be wary of phishing schemes and phony websites or emails.
When making cryptocurrency transactions, make sure you are using the correct wallet address. Recovery could be difficult if not impossible if a mistake is made.
4. Entrust a Relative or Friend
If you are the only person who knows how your business cryptocurrency is stored it is more secure. On the other hand, if something happens to you, how would your benefactors access it? Would your business fold without this knowledge?
You may need to entrust one friend or relative with the information on where and how your business stores its digital currency.
Use Multiple Cryptocurrency Exchanges
Don’t buy, sell, or exchange cryptocurrency using only one website or business. Instead, diversify among several and store your digital money in more than one place. This will help you to protect your cryptocurrency.
Using multiple exchanges reduces the possibility of everything getting hacked at once. But it also helps if your emails and passwords are different and complicated for each of them.
Since exchanges are also vulnerable to thieves, don’t store your cryptocurrency in your exchange account. Instead, remove your digital currency from the exchange as soon as possible after trading and store it in a secure location.
Store Digital Currency Offline
Consider using a storage device not connected to the internet to keep your digital currency safe. Then, lock the device up in a secure location such as a safety deposit box.
You can store your cryptocurrency on a strongly encrypted flash drive. But you could also use a computer not connected to the internet. Keeping your cryptocurrency off the internet can prevent it from being hacked and stolen.
Utilize Two Factor Authentication
You can protect your cryptocurrency with two factor authentication. That entails using more than just a strong, complex password for your cryptocurrency accounts.
A random code is generated each time you access your account. When you log in, you must enter the new code each time. Using two factor authentication makes stealing your cryptocurrency that much harder for thieves.
The digital currency of investors has been hacked more than once in the past few years. But that doesn’t mean you can take measures to protect your cryptocurrency. Use some of these ideas to keep your cryptocurrency safe from hackers and in your own digital wallet where it belongs.