4 Ways You Could Protect Your Cryptocurrency

by Andrew McGuinness  //  mrt. 19, 2018

Keeping your computer safe and your cryptocurrency secure is not as easy as you may think. Before you know it, your information and valuables may be under attack. This may start with the occasional unusual pop up, written ungrammatically and in bright red text. Your desktop may be taken over by unknown file icons, replacing your usual folders and applications.

Although many of us have become accustomed to pop-ups trying to scare us straight to the point that we have become somewhat immune to them, some pop-ups do require serious attention. Nastyware, for example, causes all data to be removed despite getting rid of the virus. In this case, having your data backed up would be well worth your time. Unless, of course, your backup were to also be hacked (which is unfortunately very possible). Malware and virus writers are everywhere these days, and they are ruthless. Here are a few ways you can stay one step ahead of them.

1. Educate yourself

If you are not aware of the ways in which people are able to hack into your computer and access not only your data, but thousands of dollars worth of Bitcoin as well, you basically deserve to be robbed. It would be the same as putting all of your paperwork, your degree(s), credit cards, and gold into a locker with no lock because you are unsure of the intricacies involved in these locking devices and don’t care enough to find out.

On the one hand, it is a plus that cryptocurrencies are decentralized. On the other hand, that also means that if you’ve been hacked, once your cryptocurrencies are taken away there is no one you can go to for help and nothing linking you to what is (was) rightfully yours.

2. Back-up every single thing you have

Keep an offsite backup of everything you have on your computer to be as safe as possible. It’s best to have an external hard drive handy because you will, without a doubt, need it. Leave this at the bank within a safety deposit box just in case anything would happen to your home. You may also want to look into online backups like Backblaze.

3. Encryption is key

Anything private or sensitive needs to be encrypted. If you do not own anything private or sensitive, you definitely have not considered absolutely everything on your computer. Veracrypt is a piece of software that will make the encryption of your files possible. There are also things like core wallets, which allow you to back up your wallet with private keys and a password. Bitcoin Core is a core wallet that may be used for this purpose.

4. Choosing your wallet

First of all, you will need a core wallet. If you are storing your coins offline, a core wallet is essential. Don’t forget to encrypt your wallet as well, it is no different from your data and may be accessed if not properly encrypted and password-protected. When looking for an everyday wallet, however, it would be wise to look into Exodus and Jaxx.

These both have the capability to hold multiple coins. But while Jaxx allows for a mobile multicoin wallet, Exodus still only has desktop availability at this stage. Another downfall of Exodus is the fact that it only asks for a password at startup, and not before any other requests. Nano Ledger is another type of wallet, a hardware wallet to be exact. Hardware wallets are basically USB sticks with the added ability to encrypt, as well as LED screens.





Get unlimited access to our Learning Center,
Broker Insights and Exclusive Promotions for Free!

Open an account