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How to Store Your Cryptocurrency Safely

Safely storing your cryptocurrency is critical in the world of digital assets full of security breaches and hacking episodes.

Holding Bitcoin, Ethereum, or any other cryptocurrency, taking precautions to protect your funds and prevent theft and unauthorized access is critical. Today, we are going to detail how to actually set up best practices around where to store your cryptocurrency and how to do so in a secure manner.

1. Choose a Secure Wallet

The initial level of how to safely store your cryptocurrency is the kind of wallet that you use. Different types of wallets provide different levels of security:

  • Hardware Wallets: These are the devices in the shape of flash drives where you can store your mined coins and it is safest against the online threats and hacks.
  • Software Wallets: These are digital wallets that exist as an application on your mobile or computer device. As convenient as they are - software wallets are more susceptible to hacking attacks and malware. Make use of reputable software wallets which come with high security features like multi-factor authentication and encryption.
  • Paper Wallets: Paper wallets are PDFs or any printout with your private keys and public addresses The flip side of paper wallets is that they are not safe from physical theft/damage. Paper wallets should be stored in a safe or safety deposit box.

2. Secure Your Private Keys

The most important piece of information you must protect is your private keys which are needed to control the access and transfers of your cryptocurrency funds. Do not share your private keys with anyone, and always store them securely. Never save your private keys online or in plain digital files, these are easily hackable and can be obtained by any user.

3. Enable Two-Factor Authentication (2FA)

Two-factor authentication allows for increased security on your cryptocurrency accounts using a second level of verification, usually in the form of a one-time code sent to your mobile phone or generated by an authenticator app. Protect yourself from unauthorized access by setting up 2FA to all of your cryptocurrency exchange accounts, wallets, other online platforms.

4. Use Strong Passwords

Use unique and robust passwords for your cryptocurrency accounts/wallets and do not use a common passwords across multiple platforms When it comes storing managing your passwords, use a mixture of numbers, special characters, and letters so that you know you are securing them. We recommend using a password manager as well.

5. Keep Your Software Up to Date

Keep your cryptocurrency wallets, software, and operating systems updated to their most recent versions which have all the necessary security patches and bug fixes. Software updates can often include security improvements and vulnerability fixes aimed at proactively minimizing the risks of potential threats and exploits.

6. Practice Cold Storage

Also, most of your cryptocurrency should be stored in cold storage (i.e. hardware wallets or paper wallets), out of reach of hackers who are the cause of over 55% of the exchange hacks. What cold storage does is keep your private keys safe and secure offline and keep them safe from harmful hackers and phishing sites.

7. Be Wary of Phishing Scams

Take care of phishing and fake sites that ask you to disclose your private keys or information so you do not steal your cryptocurrency. Do your own research before sharing personal or financial information with a website or email that appears to be legit.

8. Backup Your Wallet

Secure your cryptocurrency wallets and private keys from data loss and hardware failure by backing them up regularly. Keep backups in several safe places, including encrypted USB drives, the cloud or physical paper backups, and make sure to back them all up as soon as the last changes to your transactions have been completed

Conclusion

If you abide by these best practices for storing your cryptocurrency securely, you will be able to significantly minimize the chances of your funds being stolen, hacked or accessed in an unauthorized way.

Be careful out there, make sure you are patched and up to date on all of your software and security measures, and most importantly of all - keep your private keys private, and do not share them with anybody for any reason.

By following the proper procedures and securing the funds, you can rest assured that

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