Locking down Your Cryptocurrency during a Bear Market

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Online day trading and investing are increasingly popular following the 2021 crypto bull run. During this, markets saw mass amounts of new investors dive into various exchanges haphazardly buying and selling crypto as it pumped massively. Cypto scams also rose which caused many to lose their money and accounts.

As of this article’s publishing, crypto markets are experiencing a bear market that appears will stay for a while. Without the constant coin pumps diverting the attention of investors, bear markets are fantastic for the accumulation of wealth and revisiting online security.

2FA

2FA, (Two Factor Authentication) is using a second device to verify logins on accounts and websites either through an app, website, or SMS. 2FA is so great it is best to enable it on everything possible as 2FA alone contributes massively to security. Great 2FA Apps include:

Email

Poor email security is one of the most common symptoms in a user who has had their accounts compromised. A malicious actor gaining access to an email account is a death sentence for anything tied to it. Mostly this is done through phishing attacks and a lack of 2FA on emails. Learning how to identify a phishing attack can save a lot of headaches in the future.

It’s important to create an email specifically for crypto without any keywords that tie it to cryptocurrency. Commonly, users will use business emails or school emails to sign up and buy crypto, but those accounts are owned by said school or business and can be taken or deleted whenever.

Passwords / PINs

Poor password management is another security risk many users are taking unnecessarily. A vast majority of passwords are reused over many sites and fall under the list of most common passwords. The easiest way to circumvent security flaws is by making strong passwords that are not saved in browsers and do not contain specific crypto keywords.

The easiest way to improve this specific security flaw is by using a password manager for every site which is covered in this article.

Crypto Wallets

A common phrase within crypto communities is “not your keys, not your coins”. Meaning that cryptocurrency stored on exchanges and websites through accounts is not secure and can be stolen at any time in during a security breach or attack.

Wallets are the answer when creating your keys and securing cryptocurrency. There are two versions of wallets, hot and cold wallets. They fundamentally operate the same but do have some key differences.

Cold wallets are much more secure than hot wallets as they do not require an internet connection to store cryptocurrency. The most popular wallets can be found here.

Seed Phrases

A user’s seed phrase should be regarded as the master key and treated as such. Anyone who has access to the seed phrase has access to all the account funds with it. Never store seed phrases online or on a device connected to the internet. Even seed phrases written down on paper are a security risk. There are many ways to secure seed phrases, some methods include:

  • An old device, factory reset, and not connected to the internet
  • USB Storage device protected with passwords and encryption
  • Written down in fragments on multiple pieces of paper
  • Encryption tools with 2FA

Conclusion

The paragraphs above are just some key methods to increase cryptocurrency security and do not cover every method. Some other methods include using VPNs, secure browsers such as TOR, and setting up antiviruses and encryption on windows machines. As this bear market continues, investing slowly while bolstering security can help build a safe and secure financial future.