The rising popularity of the crypto market has gone on to attract millions of investors. However, a lot of new investors might also get trapped in security breaches and lose their investments to cyber attacks in the process.
But, in this vast crypto ecosystem, how can you secure your crypto and effectively protect your investments as well? To help you navigate this question we have compiled a ready checklist that tells you how to secure your crypto and save yourselves from common security risks that crypto investors are often exposed to.
First up securing your crypto: The rationale
Just like there are scams in traditional banking, crypto is also exposed to many scams that could make investors lose their crypto investments. Though the digital assets on the blockchain are meant to be extremely secure, new investors must understand the importance of unique passwords and they should learn to avoid phishing attempts. To do that follow this checklist:
How to secure your crypto: A checklist compiled for you
Enable two-factor authentication.
The thumb rule of security for any digital asset is to keep the password extremely private. New investors might store their passwords offline or online for fear of losing their passwords. This is why two-factor authentication is number 1 on the crypto security checklist.
A two-factor authentication (also referred to as 2FA) requires a two-level check for logging in or transferring digital assets. Typically, it includes a regular password plus a one-time password. Enabling a 2FA makes investors secure their crypto more efficiently even though their password might be leaked. The hackers can only gain access to your crypto if they obtain your password and the device on which you’ll receive the one-time passwords (OTP).
Needless to say, never share your OTP with anyone.
Use unique passwords and emails.
If you are opting for a crypto exchange to trade and invest in cryptos, you should do thorough research to determine which platform provides the maximum amount of security and is transparent, like Zebpay. It is also suggested to set up a new email specifically meant for crypto transactions and use passwords that are not used for any other platforms.
Investors often try to keep the same password across all platforms so that they can remember it easily. However, this exposes all your accounts to security breaches and must be avoided, always.
New investors trying to understand how to secure their crypto can also use apps and password managers to set up unique passwords and store the passwords safely and regularly.
Watch out for fake sites and apps.
One of the most common risks investors must be aware of is to be careful of the fake sites. Before buying any crypto asset, new investors must look at how legitimate the crypto is and its underlying purpose. Only going by social media popularity or eye-catching advertisements must be avoided to make secure investments as these can be faked.
Opt for safe and transparent crypto exchanges like Zebpay to keep your investments secure effortlessly.
Always double-check for minor differences between an original website and a fake website that is usually very similar to the original website. Even if you are downloading an app, ensure it is the official app and not one that closely resembles the original one. It is imperative to download apps only after verifying from the official website of the platform.
Avoid phishing attempts.
Phishing scams are often conducted by trained professionals who attack the vulnerability and lack of knowledge that new investors have. Hackers usually pose as authority figures and demand the transfer of assets to avoid a greater loss. They can also be in the form of an attractive offer that involves sharing private details of your crypto investments. They may gain access to some publicly available information like your email and use them to communicate with investors and establish their credibility.
Having a two-factor authentication in place and reading more and more about crypto before falling trap to such scams will help investors understand how to secure their crypto.
Use different wallets.
New crypto investors must learn about the concepts of hot wallets, cold wallets, custodial wallets, and non-custodial wallets to use them to their advantage.
A non-custodial wallet is one where the private keys remain with the investor. Here, no one can help once the private key is lost, and the investor must bear the sole responsibility for it.
A custodial wallet is one where another platform controls the private keys. While this exposes the private key to other parties, it could come in handy and provide additional security for your crypto through crypto exchanges.
Hot wallets are web-based wallets and digital wallets that are connected to the internet. Cold wallets are more physical-based wallets wherein the need to gain access to the physical device is essential for hacking.
Crypto exchanges like ZebPay use cold wallets through computers that have never been connected to the internet to keep the crypto investments secure.
By whitelisting, you can add addresses to whom you want to transfer funds regularly. This way, even if your account is compromised, the attackers will not be able to transfer your crypto to any other address or wallet since they are not whitelisted. Incorporating whitelisting ranks high on the checklist of how to secure your crypto because of its simple yet effective mechanism.
Though there are a number of ways in which attackers can violate your crypto investments, this comprehensive crypto security checklist can help you get started with understanding how you can secure your crypto in the most efficient way possible.
Zebpay stores 98% of the crypto in cold wallets making all investments in this crypto exchange completely secure. With two-thirds of Indian crypto investors placing their trust in Zebpay, start your journey of safe trading on Zebpay today!