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Cryptocurrency security tips - choosing the best crypto wallet to keep your assets safe
12/03/2018

Cryptocurrency security tips - choosing the best crypto wallet to keep your assets safe.

If you are looking for tips on how to ensure the safety of your cryptocurrency assets, you have come to the right place!
Whether you are a new investor, or no longer a beginner, our guide will help you ensure that your cryptocurrency as secure as possible.

Why is safety so important?

Like all assets with monetary value, cryptocurrency also needs to be kept secure to make sure you avoid any unpleasant surprises. Since cryptocurrency is a digital asset, the best practices related to its security might differ from those employed in case of traditional assets - which is why we have compiled a list of things to keep in mind when it comes to crypto-security.

Thankfully, most of the cryptocurrency exchanges make sure to have in-built security measures to keep your assets safe. But even the best security certificates will not save you from hackers if you are careless with your wallet.

To help you keep your portfolio as secure as possible, we have compiled a guide on how to choose the best wallet to keep your cryptocurrency in, along with some tips on keeping your wallet’s contents from falling into the wrong hands.

How to ensure the safety of your software wallet?

These easy steps will ensure that your data and assets will not fall into the wrong hands.

Choosing wallets with high security certificates

First of all, do your due diligence when it comes to choosing the right wallet. Check what kind of security certificate it possesses.

For example, wallet services offered by Darb are fully tested by F-Secure, a trusted cyber-security and privacy company, and as such are certain to have top-notch protection against all types of cyber-attacks.

Log-in data security

Now that you have chosen your wallet, you have to rule out human error. And most of the errors users tend to make concerns their log-in data.

You might imagine hackers as skilled programmers who create sophisticated software designed to crack your password. In reality, most hackers rely on users setting weak passwords, using the same passwords in many different services, using their mom’s maiden name (easily found thanks to, for example, social media) as the answer to their security questions etc.

Here are some basic rules to keep your log-in data air-tight. Those rules apply not only to cryptocurrency, so feel free to use them in any context that requires you to safeguard your data.

Using a secure e-mail

Even if your passwords are 100% airtight, it won’t matter if your e-mail account isn’t - once someone has access to your e-mail account, they can simply use the “forgot password” function and reset it.

We advise setting up a separate e-mail account used exclusively for crypto-related purposes. Try using a secure, encrypted service, such as ProtonMail to minimise the risk of your account being compromised

Choosing a secure password

No, Password1234 is not a good password, and neither is your dog’s name. You should make sure your password is impossible to guess, both for a human (who can easily find out what your puppy is called), and by a computer program.

Make sure your password is long (8 characters is an absolute minimum), and includes:

  • Small letters;
  • Capital letters;
  • Special characters, such as !, @, #, $, %, etc.
  • Numbers.

If you’re trying to create a password that is both hard to crack and easy for you to remember, try thinking of three random words, replacing some of the letters with special characters or numbers, and adding capitalisation in strange places. For example: Cat Regency Balance can be turned into c@7rEgn(Yb@1@n(e! - a password hard to crack, but easier to remember than a completely random string of characters.

As mentioned before, using the same password in more than one place can lead to potential vulnerability - a high security licence of your wallet won’t help if cyber-criminals get your password by hacking a different, less secure service where you use the same credentials.

Storing your passwords

We’re only human, and remembering fifty complicated passwords can be very difficult. It might be tempting to just let your browser remember them for you - but you should definitely refrain from doing that. Storing your password in an unencrypted program with access to the Internet is basically inviting hackers to steal your data.

Instead, consider storing your passwords in a dedicated password manager, such as KeePass. In such case, you will only have to remember your master password, and the rest of them will be securely encrypted by the program.

Or, if you fear that someone can steal your master password and get access to the whole database, you can go full analog and write your passwords down on a sheet of paper kept in a safe.

Multi-factor authentication/Multisignature security

What if a hacker somehow gains access to your log-in data? Not all is lost - especially if you made sure to enable multi-factor authentication.

Thanks to multi-factor authentication, entering your credential is not enough - you will also need a special code generated for that particular log-in. It can be delivered via a text message, via e-mail or using a special app paired with your trusted device. So, even if someone tries to use your login and password, they will not get access to your wallet unless they also have your smartphone.

Keeping your computer safe from attacks

Human error is one thing, but unfortunately our devices are not immune to being tampered with either.

It is strongly suggested that investors who operate on large amounts of cryptocurrency have a dedicated machine for crypto-related purposes, preferably one using a secure system like Linux. This way you minimise the risk of your machine getting infected while you browse the Web.

Antivirus

Even if you don’t visit the less respectable parts of the Internet, and don’t open .exe files from unknown sources, you can still unknowingly download a virus to your computer. This is why it is crucial to have an Antivirus program installed, running and regularly updated.

Free antivirus software is available, but you might want to consider paid protection to increase your security.

Keystroke mashers

Even the best Antivirus might let a bug slip through. What if your computer is infected by a keystroke logger - that is, a program that logs everything you write on your keyboard, including all your passwords? To avoid this threat, you can try using a keystroke masher - a program that makes your writing unintelligible for malware trying to read it.

Regular backups and updates

To make sure no vulnerability of your system can be used against you, keep it regularly updated. New patches fixing security issues are developed by the system producers whenever such an issue is discovered - take advantage of that to keep yourself safe.

And to avoid losing your data, keep the most important information, such as password databases, mnemonic seeds etc. stored on a secure external device, such as a hard drive, that can only be accessed by you - and can be used to restore your data should anything happen to your primary device.

Stay safe!

We hope that you find all these tips useful when it comes to ensuring the safety of your cryptocurrency assets. Make sure you visit our blog for more guides regarding cryptocurrency investments!

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