Carding Forum
Professional
We considered what are the ways to store digital assets, and also collected tips for improving security
After reaching a peak in the price at the end of 2017 ($ 18.9 thousand), the popularity of bitcoin began to fade with the exception of a few surges in 2019 and 2020. In 2021, the cryptocurrency surpassed its previous all-time highs, reaching a stunning $ 65 thousand. The price is attracting an increasing number of investors, while hackers are becoming more active. The question arises: how to safely store bitcoin?
The easiest way is to store your cryptocurrency on the exchange where you bought it. However, this is the least secure way, since, in essence, you trust someone else to store it for you. If the exchange decides to close your account or gets broken, you are unlikely to be able to get your funds back.
Similar to cash and bank cards, bitcoins are stored in digital wallets. Each wallet contains a set of private keys, without which the owner cannot access the cryptocurrency. There are different types of these wallets. Internet wallets are known as hot wallets. These are wallets that run on devices connected to the internet (computers, phones or tablets). Among their advantages is quick access to content and transactions. Among the disadvantages is low security. In theory, funds from online wallets can be obtained from any computer. A safer version of cloud wallets are online wallets without storage.
Still, the safest way to store bitcoins is with cold wallets. They are not connected to the internet, so they have a lower risk of fraud. For example, a paper wallet that you can create on some websites. It produces public and private keys that you print out on a piece of paper. Only those who own this piece of paper have a chance to access the cryptocurrency at these addresses. Many people laminate them and store them in safes. However, storing bitcoins in this way also carries risks. For example, paper wallets can be easily damaged, burned, copied and photographed.
Another way is a hardware wallet. This is usually a USB device that securely stores the user's private keys. It has significant advantages over hot wallets in that it is not affected by viruses that may be on your computer. Hardware wallets work by generating a set of private keys that you must safely store offline. The wallet itself is protected by a PIN. What's more, hardware wallets allow you to physically sign transactions, providing an extra layer of security for every action. The disadvantages of hardware wallets are their high cost and complexity.
Is it possible to improve the security of storing cryptocurrency?
We have compiled TOP-9 tips to help reduce the risks of fraud with your cryptoassets.
After reaching a peak in the price at the end of 2017 ($ 18.9 thousand), the popularity of bitcoin began to fade with the exception of a few surges in 2019 and 2020. In 2021, the cryptocurrency surpassed its previous all-time highs, reaching a stunning $ 65 thousand. The price is attracting an increasing number of investors, while hackers are becoming more active. The question arises: how to safely store bitcoin?
The easiest way is to store your cryptocurrency on the exchange where you bought it. However, this is the least secure way, since, in essence, you trust someone else to store it for you. If the exchange decides to close your account or gets broken, you are unlikely to be able to get your funds back.
Similar to cash and bank cards, bitcoins are stored in digital wallets. Each wallet contains a set of private keys, without which the owner cannot access the cryptocurrency. There are different types of these wallets. Internet wallets are known as hot wallets. These are wallets that run on devices connected to the internet (computers, phones or tablets). Among their advantages is quick access to content and transactions. Among the disadvantages is low security. In theory, funds from online wallets can be obtained from any computer. A safer version of cloud wallets are online wallets without storage.
Still, the safest way to store bitcoins is with cold wallets. They are not connected to the internet, so they have a lower risk of fraud. For example, a paper wallet that you can create on some websites. It produces public and private keys that you print out on a piece of paper. Only those who own this piece of paper have a chance to access the cryptocurrency at these addresses. Many people laminate them and store them in safes. However, storing bitcoins in this way also carries risks. For example, paper wallets can be easily damaged, burned, copied and photographed.
Another way is a hardware wallet. This is usually a USB device that securely stores the user's private keys. It has significant advantages over hot wallets in that it is not affected by viruses that may be on your computer. Hardware wallets work by generating a set of private keys that you must safely store offline. The wallet itself is protected by a PIN. What's more, hardware wallets allow you to physically sign transactions, providing an extra layer of security for every action. The disadvantages of hardware wallets are their high cost and complexity.
Is it possible to improve the security of storing cryptocurrency?
We have compiled TOP-9 tips to help reduce the risks of fraud with your cryptoassets.
- Divide your cash. Don't keep all your digital currency in one place. Use one or more cold wallets for long-term storage and at least one hot wallet for trading and transactions.
- Create backups of your bitcoin wallet. In the event of a computer failure, a history of regular backups may be the only way to restore the contents of a digital wallet. Moreover, set a strong password for the backup.
- Keep your software up to date. A wallet running on outdated software can be an easy target for hackers.
- Use multisignature. The multisignature concept assumes that a transaction must be approved by a certain number of people. This limits the threat of theft since a single controller or server cannot make transactions.
- Check URLs. Hackers are also known for their "phishing attacks". On the fake version of the real website, they force you to enter a password or private key. To avoid becoming a victim, always check the URL to make sure you are on the real site.
- Use two-factor authentication (2FA) for all accounts. Don't just rely on SMS confirmation as the phone number can be transferred to another device.
- Do not publicly brag about your crypto assets under your real name or identification address. Some robbers manage to steal digital funds even if you store them in a cold wallet.
- Use a secure Wi-Fi connection. Never connect to your online wallet over public Wi-Fi. Even when you are in a likely safe place, make sure your WiFi hotspot uses strong encryption, such as WPA-2.
- Double check crypto addresses. Some malware can edit and insert the wrong transaction address every time a transaction is sent. Typically, the new address belongs to the attacker. Better safe than sorry.
