How To Increase The Security Of Your Cryptocurrency Digital Wallets

Investing in cryptocurrencies is quite different than the regular investment options available on the market at the moment because your portfolio is held in cryptocurrency, not in regular assets. You will use what is called a wallet, which in itself is of different types. The most common one is the online wallet, which is not necessarily the most secure and is rarely recommended by professionals.

No matter what wallet you have, you need to know how to secure it. The tips above work for all popular cryptocurrencies you might be interested in investing in.

Online Wallets

The online wallet is where most regular users hold their cryptocurrencies. It is a really easy solution that can be used but it is definitely not the most secure one. This is because of the fact that your cryptocurrency and the security measures implemented are all found in just one place. A hacker is naturally drawn to this since when access is gained, you get complete control of someone’s account.

Unfortunately, the only real way to secure the online wallet is to use those that do allow some sort of third party extra security, like a cell phone pin. Also, most of your cryptocurrency portfolio should be kept in more secure wallet sources.

Mobile Wallets

When the smartphone is responsibly used, this is an option that you can consider. The mobile wallet is a temporary wallet that makes it simple to transfer some smaller amounts on a daily basis. Convenience is high but there is an associated security cost you will need to deal with. Make sure that you research all options available and that you do not store too much on a mobile wallet.

Desktop Wallets

The natural security of the desktop wallet is much higher than with the other 2 options mentioned. You get to store the encryption keys offline, which is a huge advantage. In the event that you lose the computer or it is hacked, the crypto you own is not lost. Obviously, if you also store your encryption keys on the computer, you are at risk.

Hardware Wallets

This is widely considered to be the very best way to store cryptocurrencies. It is an USB key that is built for this purpose. It requires a password and will work offline. The software added to it is ROM-based. This means hacker will not easily rewrite it. The only problem is that when using this wallet on compromised machines, hackers can gain access.

You can use the hardware wallet to store most of your cryptocurrency investments. You never use it every day so security is naturally higher. The one thing you need to absolutely think about is where you use your hardware wallet. Be sure that the computer you plug it into is secure.

Conclusions

You never know what website you visit can be harmful for your cryptocurrency investment portfolio. Choose the hardware wallet for most of your storage and other options for micro transactions. Buying a second phone you only use for crypto related activities is also a really good idea.


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June 21, 2018 How To Increase The Security Of Your Cryptocurrency Digital Wallets