3 Ways to Keep Your Crypto Safe From Hackers

The world of cryptocurrency is growing at an incredible pace. New coins and tokens are emerging regularly, bringing with them new opportunities for investors. But with that growth has come an increase in the number of hackers looking to exploit any vulnerabilities. The extensive media coverage of cryptocurrency hacks may lead you to believe that they’re commonplace, but the truth is that the number of attacks is still very small compared to the total number of crypto users worldwide. Keeping your crypto safe from hackers requires you to know how and where you store your digital assets. If you own any cryptocurrency, it’s essential that you understand how to keep your coins safe from hackers and other malicious actors who might try to take advantage of you. Here are three ways you can keep your crypto safe from hackers:

USE A HARDWARE WALLET

Hardware wallets are one of the best ways to store crypto securely. They’re essentially pocket-sized computers that you store your crypto on. As soon as you connect your hardware wallet to the internet, it’ll download the latest versions of your crypto’s wallet software. That means that you can store your coins offline and they’ll never be connected to the internet. Most hardware wallets are “cold” wallets, meaning that they can’t be hacked via the internet. If you’re storing significant amounts of crypto, a hardware wallet is one of the best ways to keep it safe. There are a few things you should look for when buying a hardware wallet: First, make sure it’s manufactured by a reputable company and is approved by the people who created the coins you want to store. Second, check that the wallet is supported by the coins you want to store and that those coins have an official wallet software available for that kind of hardware wallet. Third, try to buy a wallet that lets you use two-factor authentication or another form of extra security.

CHOOSE A REPUTABLE EXCHANGE

New crypto investors may decide to store their coins on an exchange like Binance or Bittrex. While there’s nothing inherently wrong with that, doing so means you’re putting a significant amount of trust in the exchange. That’s because cryptocurrency exchanges aren’t regulated by any government or financial authority. The owners of the exchange have no legal obligation to compensate you if something goes wrong and your coins are stolen as a result. Another problem is that exchanges aren’t designed to be secure – they’re more like a stock exchange where buyers and sellers trade shares. While exchanges are convenient, storing your crypto on one is one of the least secure ways to keep your coins safe from hackers. If the exchange is hacked, you’re likely to lose your coins. You should only store your coins on an exchange if you’re only holding small amounts of crypto.

DON’T STORE ALL OF YOUR CRYPTO IN ONE PLACE

Ideally, you should store only a small amount of your crypto on an exchange and keep the rest in a hardware wallet or another offline wallet. But what if you want to buy a new coin and don’t have enough space in your hardware wallet? You could transfer some of your existing coins to the hardware wallet and then buy the new coin with the remainder. The problem with this is that it means you’d be storing two different types of coins in the same wallet. This is risky because it means that you'll lose the other if one coin is hacked. A better approach is to store your existing coins in a hardware wallet and then buy the new coin with a “hot wallet”. A hot wallet is an online wallet that’s connected to the internet. If you keep your new crypto in an “altcoin” wallet, it’ll be easier to exchange it for other coins.

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