How to keep your crypto currency and digital assets safe?

Almost a decade ago the Bitcoin was the most talked about investment opportunity in the world. But as time passed on we started to hear about people losing their crypto currencies due to hackers. Moreover, the recent story about QuadrigaCX founder Gerald Cottons death brought another issue to light. After his demise his clients lost access to the 190 million dollar crypto fund

Cotten’s wife says the keys for the cryptocurrencies’ cold storage are inaccessible to her, leaving little solutions for investors. Another issue is the ongoing hacking of digital currency exchanges. Bitcoin and other virtual currencies remain an increasingly common goal for hackers as it is easy to cover their traces as their digital fingerprints can also be digitally erased. Digital currencies remain unregulated by a government body or central bank and when an account is compromised, investors are left without legal recourse.

Only buy hardware wallets from trusted sources:

An increasing number of wallets from less reputable companies offering enticing features are undercover malware, says Mr.Wenzler, the senior director of cyber security at Moss Adams. Choose a controlled exchange because it is more likely to have adequate safety measures in place, experts claim. “QuadrigaCX was facing liquidity problems for months and anyone who did even a minimum amount of research online would have seen this, said Matisyahu Greenspan, senior market analyst at eToro, an Israeli social investment network. Almost all businesses in this field are start-ups and not audited by financial regulators, says Alex Hamerstone, a management, risk management and compliance practise at TrustedSec in Strongsville, Ohio.

Use cold storage devices:

Storage on an online exchange is avoided by an offline hardware computer such as a USB or hard drive. Jason Glassberg, cofounder of Casaba Security, has said the fundamental concept is that crypto investors need their money to be able to see and feel it. “The QuadrigaCX situation is a nice example of one type of risk, but another more common threat that comes from hackers who routinely target the online exchanges, wallets and other methods of storage to steal currency.” USB devices have buttons that allow users to confirm or cancel transactions by touching the computer, says Benjamin Cole, an associate professor at Fordha’s Gabelli School of Business. “That ensures no cyber criminal can record your keystrokes,” he says.

Don’t keep all your eggs in one basket:

This is equivalent to any regular investment advice, but, Wenzler notes, you should not keep all your eggs in one basket. Should an exchange be lost for any cause, by spreading out where your currencies are held and how you handle them, you can protect your investment and mitigate the effect of any loss,”Should an exchange be lost for any reason, you can protect your investment and minimise the impact of your loss as they will be spread out where your currencies are kept and how you’re managing them,” Although it takes more time and allows you to keep closer track of stuff, it’s a risk management technique that is more secure.

Store your private keys on a safe platform:

The same easy passwords that are reused on social media sites should be avoided by investors, says Chris M, head of security analytics at Vectra, a technology company based in San Jose, California. Using solid two-factor authentication techniques instead. Michael Borohovski, co-founder and chief technical officer of Tinfoil Security, a Mountain View, California-based cybersecurity company says that it is very necessary to use at least a multi-signature or more than one key to approve a bitcoin transaction, as this will significantly reduce the chances of fraud. Think of it like an e-mail or bank account multi-factor authentication.

Keep a backup of your private keys:

In the same spirit as using an offline wallet, in the event that the keys are lost, a backup of the private keys is needed, Morales says. Establish redundancy: It’s easier to have access and play it safe. Make cryptocurrency stash backups as much as possible, but particularly whenever there is a transaction, Borohovski says. Store them both in your hardware wallet and in the cloud, so you would not lose all your money in cryptocurrencies if one service or hard drive dies.

Use a good password:

With a very strong password or a set of keys, secure your wallet and backups, Borohovski says. One that can’t be quickly recalled or broken is a good password. One with 64 characters, numbers, upper and lower case letters and symbols will be generated by most password generators. In order to try to hijack these accounts, hackers use sophisticated password crackers and these methods often use dictionaries, lists of common passwords and brute force attacks, so the longer and more complex your password is the more entropy it has and the longer it will take to crack. Knowing the seed phrase is also necessary and storing it in a secure safe or security deposit box.

Don’t use public networks:

When it involves your money, it does not make sense to use a public Wi-Fi hot spot, Morales says. To stop anyone eavesdropping and redirecting your funds to somewhere else, just make transactions on networks that you own and trust. Glassberg says that they only do online cryptocurrency business on a dedicated personal computer or device with no other accounts on it. Investors who manage and participate in transactions through an all-purpose PC, phone or tablet with their cryptocurrency account are only asking for greater danger. Anyone with a stake in the game on their computer cannot risk a single malware infection because that could be what it takes to lose tens of thousands of dollars.

Keep your investments private:

Keep investment and account information private, Glassberg says. In order to identify new targets for crypto-currency attacks, cybercriminals are aggressively scouring social media, online forums and other sites. Investors need to remember that they become a big fat target for these scammers when they own cryptocurrencies, whether they know it or not. The most important thing is to stop communicating on social media or anywhere else online about your trade or portfolio.