Crypto

How to protect your funds in cryptocurrencies? – @Securigi

How to properly protect your cryptocurrency portfolio is a rather difficult dilemma for those who are new to the world of cryptocurrencies. The first thing to know is that digital currency security threats are not closely related to blockchain technology, but to third-party interfaces that provide access to your network. That is, devices that store wallets and private keys, or sites that buy cryptocurrencies. It should be remembered that active cryptocurrencies are not regulated by governments or central banks. Therefore, we are obliged to take the necessary measures to protect our funds; moreover, in case of loss of funds, the probability of their recovery is minimal. So follow these few cryptocurrency wallet recommendations to stay safe!

Safeguard and secure your cryptocurrencies

A digital wallet or wallet is a tool that gives us access to cryptocurrencies. Unlike a classic wallet that we put in our purse or backpack, a digital wallet is virtual. Our cryptocurrencies do not physically exist in this wallet because the tokens are on the blockchain.

To understand how to protect your cryptocurrency portfolio, you must know that wallets are divided into “hot” and “cold”. The first type is connected to the Internet, while the second remains offline, at least most of the time. Which is the safest?

cold wallet

Cold wallets are wallets that are not connected to the network, which means that they are more secure and allow you to store large investments for a long time, for example, if you buy cryptocurrencies on KuCoin. Of course, there are several types, each with its own properties. These wallets can be in the form of desktop programs or apps that stay offline. However, they are not fully insured: computers and smartphones can be infected with a virus or hacked.

hot wallet

These are less secure virtual wallets, but they allow you to conveniently and quickly use your cryptocurrencies. Generally speaking, they offer more services than cold wallets. Perfect for those who want to get started in the world of cryptocurrencies, the hot wallet is undoubtedly more suitable for beginners. It is easier to use and helps you understand market dynamics step by step without the risk of managing your investments on your own.

Also, since they are connected to the internet and therefore to the blockchain, they allow you to buy and sell active cryptocurrencies in just a few minutes. You can also buy cryptocurrencies very simply today. In times of high market volatility, or when prices rise and fall significantly in a short period of time, you should be able to trade quickly. This is what will allow you to make a profit.

However, it should be noted that hot wallets are more vulnerable to hacks and phishing attempts precisely because they are connected to the Internet. Therefore, the issue of account security is crucial for individuals, as well as for companies that offer cryptocurrency storage services. Even if the procedures for accessing our funds sometimes seem a little complicated due to the double authentication systems, these are actually strategies to protect your virtual money.

Conclusion

In any case, when we think about how to protect our cryptocurrency wallet, we must automatically apply several security measures such as a secure password manager so that we do not lose passwords. Or make regular backups so that we can restore our wallet in case of loss of our equipment (smartphone or computer). Even the most experienced users of the “cryptosphere” are not immune from attacks, and the loss of funds is always on the agenda. Therefore, the security of our virtual wallet is not to be taken lightly and, for now, prevention remains the best defense.

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