The increasing popularity of crypto-assets highlights the paramount importance of safeguarding your assets on crypto exchanges. Given their digital nature, protecting your funds against hackers and scams becomes decisive.
How to safeguard crypto assets? In this blog, we will explore vital security measures to enhance crypto asset security.
Let’s discuss passwords for a moment, one of the mentioned entry points. The truth is, despite the extensive talks, it’s astonishing how many terrible ones make it to the top list every year—birthdays, 123456, and even using the word “password” itself.
In this day and age, with password vaults and generators available, there’s no excuse for this. These tools help you create secure keys and remember them for you. They can even remind you to change them regularly.
Consider using such a password management system and take great care to protect your keys. No amount of fancy firewalls and protection can make up for an easily guessable password.
This includes several crypto exchange tips. First, try to avoid public Wi-Fi, as it carries risks of hacking and data interception. Secondly, configure your home Wi-Fi network so that it is reliably protected from hacking. There are enough parameters for this in the router settings. Thirdly, use a VPN as often as possible, or better yet, always.
The last point is worth dwelling on in more detail. With a VPN for crypto trading, you can prevent data leaks, and protect against targeted hacker attacks, and DDoS attacks. More advanced crypto trading VPNs, such as VeePN, also offer protection contrary to viruses and phishing attacks. It is a versatile and powerful tool for comprehensive protection.
Having a clearly outlined policy is noteworthy so that everyone in your organization knows the right actions to take and the actions to avoid. Your policy should encompass best practices for passwords, encryption, device usage, email, and all other areas influencing security.
Moreover, it is necessary to specify the consequences of policy violations. Ensure that you update the policy as required and inform everyone promptly of any changes made.
To minimize risk, users should only be granted the minimal necessary level of data access, system privileges, and rights required for their role. If you trade only from your personal computer, it is worth using separate accounts for other users, if any.
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 approach ensures that the impact of any misuse or compromise of the account will not exceed its necessary severity.
This statistic shows top 10 cryptocurrency theft incidents from 2021-2022 Q1.
Adding 2FA enhances the security of your exchange account. It usually requires linking your account to a mobile device or authenticator app.
Whenever logging in or performing major actions, you must provide a unique verification code generated by the app or sent to a mobile device. 2FA greatly decreases the chance of unauthorized access, even if the username and password are compromised.
Even with utmost vigilance, there is no guarantee that your system will remain untargeted. 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 decisive data and securely store the backups.
You can utilize cloud storage, an external drive, or both options.
Security incidents occur frequently. The 2023 UK Government Cyber Security Breaches Survey revealed that nearly half (56%) of businesses experienced cybersecurity breaches or attacks within the past year.
Therefore, it is paramount to anticipate unfavorable situations by implementing policies and processes that effectively manage incidents and mitigate their impact.
DID YOU KNOW?
In the first quarter of 2023, there were 57 cryptocurrency thefts. In October 2022, there were 32 attacks and more than $775 million lost.
When using a crypto exchange, it is vital to secure your digital wallet. You should choose a reputable wallet that emphasizes strong security. Consider utilizing a hardware wallet, which keeps private keys offline and offers an additional layer of protection against hacking attempts.
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.
The wise approach is to protect your crypto exchange wallet as much as possible. Use all protection systems contrary to unauthorized connections that are available to you. Security cannot be too much. It is also wise not to store funds on the exchange that you do not plan to use shortly.