Among choosing the right cryptocurrencies for investing, right wallet, and ensuring proper security of digital assets, investors go through a lot of decision making. Most of their decisions are well informed, but when it comes to security, everyone is clueless.
The security side of cryptocurrency has a lot of information on the Internet. Still, it is hard for the users to narrow down on a single wallet or software to entrust it with all their valuable crypto assets. So, let’s talk about safeguarding your crypto by following these well-tested pro-tips.
My crypto has been stolen, what can I do?
Honestly, all the crypto thefts cannot be recovered. In most cases, theft is a case of phishing, compromised private keys, redirecting users on fake websites, or API manipulations. In the case when your crypto assets are stored on a wallet or exchange and the theft is due to lack of security on their end, they’ll be liable for compensating the loss.
Most likely, you cannot do anything in that case.
How the heck did crypto theft happen?
Over the years, the hackers and attackers have been developing new ways and that too at the equal pace with the blockchain security development. Phishing continues to remain the most common threat. You need to make sure of the reliability of the sources for crypto news along with the platforms for trading and storing the crypto.
Those who plan the phishing attack often plant fake links in emails or they may redirect the original website to their planned phishing site with a little change in the URL. You should always double check the URLs of the exchanges.
Where should you store the keys?
The biggest mistake people make is of storing their private keys (passwords) in email or on online storage platforms like google drive. The emails and drives are prone to hacking if the attackers are aware of your crypto holdings. The best place to store your keys is your local computer.
You can also copy the keys in a file and store it in a USB drive. Keeping a USB drive handy seems too much work. However, just stick to this blog and we’ll simplify it for you so that you won’t need to go back to your USB repeatedly.
What if you lose your keys?
All of us have read news around how people lost access to Bitcoins worth millions of dollars. According to an estimate by Chainalysis (forensics firm that studies the bitcoin blockchain), 3.79 Million Bitcoins are lost on the Blockchain. Losing coins simply means that their owners lost the private keys (or master password) of their exchange or wallet. In some cases, they might have even lost their hard drive (cold wallets) on which they had stored their bitcoins.
In wallets like Arax, you have the option to keep one of the two keys safe, namely, Master password and private keys. In case you lose one of them, there is always an option to restore or recreate the other one, but no one will be able to help you if you lose both. It is the same as losing the keys of your car. However, the only difference is that you can break into the car but you can never break into a crypto wallet.
If you research more on the Internet, you’ll find a number of cumbersome measures to safeguard your crypto. But all that comes with the tradeoff with ease of use and your experience. No smart investor would like to spend hours jumbling with software, keys, and websites to get secure access to their own crypto.
On the other hand, they can opt for Arax global cryptocurrency wallet which comes equipped with industry grade security measures. All you need to do is securely store your Master Password on your local computer and remember the login pin.
Every single access to the wallet is granted by the 6 digit security pin which works as your login password. Even if your device and security pin gets compromised, the final transactions need to make use of the master password. As mentioned earlier, you cannot lose your master password, as that ties everything together.
So instead of worrying about the security of your crypto assets, just store them on your mobile wallet (preferrable Arax) and save your master password and private keys on a USB drive (or your computer). People expect crypto security to be as simple as resetting an email password.
However, wherever money is involved, we cannot be too lenient. With time, the wallets will come up with biometric passwords (fingerprint and facial recognition), but for the time being the rule of thumb is don’t trust any random platform with your crypto and store your keys safely (locally).