Best Ways To Secure Your Crypto Investment

XcelPay|5 min read|Jan 5, 2019

In 2009, since the release of cryptocurrency, the market has been expanding rapidly. But as the value of crypto increases consequently, there is an increase in the threat of theft or hack. Nevertheless, crypto cannot be kept in any physical form and is not stored in any financial institution, how does one safeguard them? Read on to find out on the best way to do the same.

How To Secure Your Crypto Investment?

1.    Default Wallets Of Exchanges

The default wallets offered by the cryptocurrency exchanges are wallets which are primarily used for trading purposes. These wallets allow you to instantly - buy, store, sell and convert all your currencies in one place and are linked to your bank accounts.

All your information and other related data are stored in a secured wallet with cold storage for double protection.

2.    Cold Storages

To hold a large number of cryptocurrencies, you should use cold storage.

The most convenient way to use the cold storage method is by holding cryptocurrencies using a hardware wallet.  A hardware wallet is a specialized USB drive which generates a 256-bit SEED to protect all the data on the device. You will also need a PIN to get access to the data, your wallets, and the crypto tokens. The device will self-destruct all the data if the wrong PIN is entered 3 times in a row.

3.    Software Wallets

Software wallets incorporate a smart range of wallets that are generally downloaded or digitally accessed. Each type of software wallet has varied levels of security and accessibility. There are three major types of software wallets which include the online/web wallets, desktop wallets, and mobile wallets.

*   Desktop Wallets

Desktop wallets are a type of software wallet that is downloaded and installed on your computer. Using a desktop wallet allows for greater security as they store your private key on your hard drive.

*   Mobile Wallets

Mobile wallets are downloaded on your mobile devices in the form of an app. This app stores your cryptocurrency, are simple, easy to use and work well for individuals who pay using cryptocurrency.

*   Online Wallets

Online/web wallets are accessed through your web browser. They store your private keys in the cloud and hence allow you to access your crypto from any device connected to the internet.

How To Secure Your Cryptocurrency Investment?

*   Use a strong password to encrypt your wallet

*   Never share your PINs and passwords with anybody

*   Use multiple layers of security like 2-factor authentication on your wallet

*   Use cold storage for holding a large number of tokens and use mobile, desktop or online wallets only for making transactions

*   Store your SEED in a location which is highly secure and make sure nobody besides you can get access to it

A Final Word

Investing in cryptocurrencies such as crypto can be a wise decision, but you need to take necessary security measures to safeguard your investments.

These wallets cannot only hold a large number of crypto tokens on mobile wallets, desktop wallets or online wallets. They can even be used for regular transactions, storing your crypto and keeping them encrypted with keys.


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