Safeguarding Your Crypto Assets: 8 Essential Security Tips for Traders on the Internet

Cryptocurrencies are a pretty popular way of investing money in the financial market today. 

With its prices soaring as high as the sky, it’s no wonder why every Tom, Dick, and Harry want to get their hands on these digital, decentralized assets.

There is always an active need for cybersecurity in our connected world, especially when it comes to crypto. What everyone fails to realize is that this surge in price also makes crypto a very lucrative asset for those with bad intentions (like cyber attackers, hackers, and criminals.) 

So, how exactly does one protect their digital assets?

In this blog post, we will take a look at some security measures you can take to protect your crypto assets from bad people.

Best Security Tips for Internet Traders

Cryptocurrencies are decentralized and nonfungible tokens that can be used in place of your local currency to exchange goods.

But because of their digital nature, it can be pretty hard for one to protect these assets from people with bad intentions.

Here are some tips and strategies that can help you protect your assets and improve their security.

Passwords are one of the first things that hackers crack to gain access to your accounts.

It is surprising that, despite many extensive talks and articles about password security, just how many birthdays, 102456s, and so on make the password list? 

You need to create passwords that are unique to each account and should not be something that is easy to guess by others.

And if coming up with unique passwords is not on your list, there are a ton of password management services that have random password generators that you can use.

And even after that, you need to change your passwords regularly as well.

This, in practice, will make it a lot harder for hackers to gain access to your accounts.

But, if you think that passwords are it, then you’re wrong.

Hey, you need to take care of your internet security too.

First of all, you need to avoid any public Wi-Fi, as there may just be a bad person, malware, virus, or hacker sitting on the other side.

Bad people can easily spoof your traffic and get your data from your public Wi-Fi traffic.

Aside from this, you can also use a VPN to hide all your traffic.

Using a VPN for crypto trading, you can prevent data leaks, and protect against targeted hacker attacks, and DDoS attacks. 

If you deal with crypto assets in a professional capacity, you need to be more aware of security threats.

Having a clearly outlined policy to protect your digital assets is very important in these situations.

A good security policy can include best practices for passwords, encryption, device usage, and some other things that deal with security.

If you want to minimize risks, you can also limit access to your accounts.

So, if you only trade from your PC, you must separate your accounts from other systems and devices in your network.

It is also wise to use a VPN extension or an application with a free trial version on all devices that will get connected to the Internet. 

You can go ahead and install the Chrome extension on the PC, as well as a VPN on the router. 

All devices on the network will be protected, and you will be able to change servers in the browser. 

This way, you can make sure that the impact of any misuse or compromise of the account will not exceed its necessary severity.

INTERESTING STATISTICS

The total amount of funds lost to hackers last year decreased significantly from the $3.7 billion stolen in 2022 to the $3.3 billion stolen in 2021. But still, the number of incidents actually increased, from 219 in 2022 to 231 in 2023.

Adding 2FA enhances the security of your exchange account. It usually requires linking your account to a mobile device or authenticator app. 

So, whenever you log in or perform any major actions, you need to put in a unique verification code limited to that login attempt only.

With 2FA you can pretty much decrease the chance of unauthorized access, even if the username and password are compromised.

Even if you stay alert all the time, there is no guarantee that your system will remain untargeted.

So, if you want to prevent the loss of all the data in the event of an attack or system crash, it is advised to automatically back up your important data and securely store the backups. 

Besides, you can use cloud storage, an external drive, or both options.

Despite the tech evolution of trading platforms security breaches are pretty common these days, in fact, there are about 3.9 computers hacked every second.

And, in 2023, the UK Government Cyber Security Breaches Survey revealed that nearly half (56%) of businesses experienced cybersecurity breaches or attacks within the past year. 

You need to be prepared for such scenarios by implementing policies and processes that effectively manage incidents and mitigate their impact.

DID YOU KNOW?

The start of 2024 has seen a surge in crypto criminal activity, with the value of stolen cryptocurrencies nearing $430 million. 

And, no matter what security measures you use, it’s all for naught if your digital wallet is not secure. 

It’s the only way to send and receive crypto and your money is stored here after all.

You need to choose a reputable crypto wallet that is known for its strong security features.

And if you still cannot decide on a wallet, you can use a hardware wallet.

While it stores your crypto, you can simply unplug it from your PC and protect your digital assets.

After all, no internet means no access.

You can also keep your private keys stored offline and delete any digital copies.

This will give you a little bit of extra security and peace of mind.

Just remember to regularly back up the wallet and store recovery phrases or private keys in a safe location. 

The popular cold storage providers, Trezor and Ledger, should be explored thoroughly as you conduct your research (DYOR). 

Assess the tokens accepted and storage capacity to identify the best option for specific needs.

Conclusion

Cryptos are a very popular way to invest because of the opportunities and potential for growth they offer. 

But this opportunity has also made it a target for hackers and the like. There is no shortage when it comes to the benefits of crypto in trading, but being on such a high level requires every user to protect themselves.  

You need to learn how to protect your digital assets from people with bad intentions.

By following the steps in this blog post, you can easily be on your way to a safe digital asset wonderland.

From, keeping your passwords safe to implementing secure policies and safe practices of using secure wallets, you can easily stop any hacker or cybercriminal from gaining assets to your oh-so-precious cryptocurrencies.