Monday, January 30, 2023
  • Crypto hardware wallets are the best way to safeguard crypto. A hardware wallet is a physical device that stores your user’s private key and can be used to house your crypto coins.
  • A common mistake most people often make is leaving the zombie account open.
  • A backup where you store your wallet’s private keys will come in handy, especially if stored offline.

One of the most critical elements that blockchain and cryptocurrency presented to us was their security. They applied cryptography and hashing to boost their confidentiality. At the same time, their multi-chained block system increased their data integrity. These factors made crypto security thrive during the golden age of cryptocurrency. This new concept was like honey in the cyber security world, but it was short-lived. Over the years, many have compromised the crypto security standard, causing significant losses to crypto traders and exchange platforms. Loopholes and flaws filled this new concept causing many hackers to exploit unforeseen vulnerabilities. This was a learning curve for crypto investors and developers worldwide, and improvements came from these bitter lessons. Over the years, several blockchain security measures have been implemented to safeguard crypto from preying hackers and scammers.

This constant tug of war has led to frustrations from crypto investors, who have continuously cried out for help. Organizations handling crypto have placed various precautions to secure transactions and remain compliant with the set regulations of cryptocurrency. Although there are still looming dangers surrounding crypto, there have been equal efforts to build a more advanced crypto security system. The critical concept we learnt from the previous article is that human error and negligence are the greatest vulnerability to the blockchain. 

As a crypto trader, you must partake in crypto security and practise various security measures to safeguard your digital assets.

Below are the various steps you can take to safeguard your crypto assets.

Acquiring a hardware wallet as a security measure.

Crypto hardware wallets are the best way to safeguard crypto. A hardware wallet is a physical device that stores your user’s private key and can be used to house your crypto coins. 

crypto security

Crypto investors are urged to practice various security standards to safeguard their crypto assets.[Photo/Coinbase]

When thinking about hardware, most crypto investors get cold feet about the ASCII machines used to mine. Fear, not a hardware wallet, can be as small as a USB and as big as a CPU or a Raspberry Pi. Its main benefit is that you have complete control over the security measure you apply to your crypto coins.

Also, Read Ghana’s crypto ecosystem rivals countries for Africa’s top tech hub title

Unlike software wallets, your wallet is as good as safe if a crypto hack occurs in the exchange. These devices are also open-source, meaning that you, as a crypto investor, get to determine whether the crypto security applications are worthwhile rather than going by the word of a company you barely know.

You will require some knowledge to configure and securely set up your hardware wallet. There are various tutorials and great guidelines that are available on the internet.

Clean up.

A common mistake most people often make is leaving the zombie account open. Most people usually use one email address to open various accounts on various platforms, not just crypto. You will find a better service and then shift to a better platform, and before you know it, years have passed by, and your former account is still open.

Crypto security and general cyber security work on the principle of advancing to keep up with hackers’ consistency. That dormant account in your former crypto wallet compromises the crypto security standard: once a hacker can acquire access to it, they can access your email address.

Once they crack your address, the story after that is pretty short and bitter as a crypto investor. One should habitually delete legacy crypto wallets from former crypto exchanges. Doing this prevents the likelihood of a crypto hacker illegally accessing your account to conduct illicit activities or, worse still, be a door to access your current digital assets.

Human error and negligence is the critical demerit in crypto security. Learning basic security competence such as this can save great trouble.

Acquiring a Backup

A fundamental crypto security standard is always to have a backup. Private keys are the bread and butter of crypto security hence should be securely kept to safeguard your crypto assets.

A backup where you store your wallet’s private keys will come in handy, especially if stored offline. In this case, if there is ever a time you have forgotten your private key, you can access it with ease. It is a simple but crucial security measure that addresses a human error in crypto security.

Shifting to private-based crypto coins

Most often than not, if you have been keen on the recent trends, you’ll only hear of major cryptocurrency firms getting hacked. Companies such as Ethereum, Polygon and even Binance experience the consistent threat of being hacked.

This is mainly because of its broad attack scope; it has numerous customers, and each one utilizes the resources of an open crypto exchange system. Granted, they each contain their crypto security to safeguard crypto, but it’s never enough. 

A shift to the private sector of crypto might do some good. The primary goal of privacy-based cryptocurrency is the high emphasis on maintaining privacy, anonymity, compliance and crypto security. You’ll rarely hear a crypto investor complain about a crypto hack towards a private crypto exchange. 

Privacy coins are not among the top in the leaderboard, but if you have suffered more than once in cryptocurrency, they are the best choice.

Although there have been various scepticism around private coins, rarely will you hear them suffer from any form of crypto hacks. There is a possibility that crypto hackers use the same private coins during their escapades, so it’s doubtful they would want to damage the very thing that helps them escape.

Also, Read Polygon hosts first ever African Bootcamp and hackathon in Kenya

Conclusions

Crypto security is still as new as cryptocurrency, not more recent. It will take considerable time to safeguard it entirely, and a perfect security system is an impossible dream. If a crypto investor can practice due diligence, the rate of crypto hacks will drop significantly. Having standard crypto competence is a sure security measure that will safeguard crypto against theft.

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