5 Crypto Security Tips to Know Before You Start Investing

Crypto is becoming a popular asset attracting many people today. Research shows that there was 14% crypto ownership in Canada in 2021.

Owning cryptocurrency is an ideal investment idea for diversifying your investment portfolio. Investing in cryptocurrency comes with asset security protecting you from inflation.

Before investing in crypto, understand the security measures that protect your assets from theft. Here are five crypto security tips to know before investing.

1. Use Strong Passwords

You become a target by criminals as soon as you start trading in cryptocurrency. Since most transactions occur online, crypto security is an issue because your data is accessible to criminals.

You can limit theft cases by using strong and unique passwords for different crypto accounts. Having a password with special characters, words, and numbers boosts your account’s safety. Besides, using two-factor verification alerts you if someone tries to access your account.

2. Avoid Clicking Unknown External Links

Hackers use several methods to source information from online users. These hackers design their email addresses to look like the company providing you with crypto services. Such emails come with external links that redirect you to websites that install viruses on your device.

Before clicking these external links, confirm if the company uses the same email address and note the domain name. Alert your crypto company if the email needs you to verify any personal information.

3. Use Decentralized Storage Crypto

Decentralized storage uses a blockchain system to keep your cryptocurrency data safe. Unlike cloud storage, a decentralized platform splits your data into parts and spreads them across nodes. Thus, you can buy STORJ and store your data in an encrypted format in separate nodes.

Further, you can secure crypto transactions by using this cloud storage that keeps your data within a STORJ network. This storage system is also ideal since criminals can’t decode information held by one node or device.

4. Use a Hybrid Approach

Since online crypto wallets are prone to hacker attacks, adopting a hybrid strategy boosts safety. This approach allows you to store your data offline and online.

A hybrid strategy boosts your crypto security by using a hardware wallet or cold storage. You can dedicate a storage folder to your hard drive, computer, or pen drive and store your data off the internet. Reducing sensitive information online limits criminals from accessing your crypto data.

5. Avoid Storing Your Crypto in an Exchange

Having secure storage is among the best crypto tips you should note before investing. After buying crypto, you can save it in exchange or digital wallets. But you’re likely to lose your crypto savings when using exchanges.

Crypto exchanges are risky and prone to high-security issues, such as attacks from hackers. Storing your cryptocurrency in such a platform risks all your investments. Thus, you can reinforce your cryptocurrency security by keeping your purchases in hardware or cold wallets.

Apply the Crypto Security Tips to Improve Your Safety

Applying crypto security tips is essential in protecting your data from hackers and other online criminals. Avoiding phishing emails reduces virus attacks and secures your crypto information.

Also, using decentralized storage platforms keeps your data away from theft. You can also secure your crypto accounts by having different and strong passwords to avoid risking all your assets.

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