
Talking Security: Three Simple Tips for Protecting Your Crypto Stash
Today BitMEX confirmed that the email addresses of thousands of users were accidentally distributed to the public. Crypto-Twitter is in an uproar over the affair and top community members like Binance CEO Changpeng Zhao (CZ) have urged users to take precautionary measures following the incident.
The incident highlights the need for users and exchanges to be extra cautious with the handling and distribution of crypto assets and any private details associated with it. Let’s quickly review the best steps for securing one’s crypto assets.
Don’t Cut Corners
They say that the weakest link determines the strength of a chain. It makes the whole difference whether that chain will hold on to pressure or yield to brute force. And when the chain breaks, the part that snaps, and gets damaged is the weakest link. Unfortunately, when it comes to digital security, people are the weakest link.
You can build the best tech there is, safeguarding immense value. You can erect a fortress around it. The fact is, if the end-user does not adhere to security best practices, it will all amount to zilch. Nada. Zero.
A couple of cases in point: Stuxnet infiltrated the Iranian nuclear plants through a pendrive dropped at a parking lot. Hackers breach secure bank security by email attachments.
Just like that, millions of man hours devoted to developing highly secure digital systems are bypassed via a human vector. And worryingly, cryptocurrencies aren’t safe either. So, what could be done to protect people against themselves? What can you do to protect your crypto?
1. Ditch Mobile Wallets
Coinomi. Jaxx. Bread. These are very handy if you want to have some petty cash on you. They are ideal for ‘simulating’ trading scenarios when you are on the move. But when you are talking about a serious portfolio, you cannot afford to carry your coins around. Smartphone wallets are easy to hack. If it is connected to the internet, it is a soft target — a sitting duck, waiting to be poached. Or, lose your phone and BAM! Everything is gone — especially if you do not remember where in the house you kept your seed phrase.
Having a hardware wallet for some cold storage ought to do the trick. Invest in one. Make several backups. Store them as you would store gold. After that, you can roam the world freely with your smartphone, and some peace of mind.
2. Run Away from Windows
The Windows OS can run a beautiful version of the Exodus wallet. But just because it pretty does not mean it is safe. If you have a sizeable stash of crypto that you do not want to be stolen, consider holding it in a Linux Virtual Machine, Virtual Box or a CentOS.
If you must use Windows, do a clean install of a Virtual Machine and give up administrator privileges. That way, malicious software will not be installed mysteriously.
3. Enable 2FA Everywhere
Two Factor Authentication (2FA) is an excellent way of ramping up security, especially if you interact with exchanges like Binance and p2p trading sites like Localbitcoins. This means that whenever you log onto these online services, you have to verify that it’s really you.
It usually involves a text message sent via Google Authenticator or Authy. Setting up a 2FA security system is easy and totally worth it — you will be immune from phishing (even if you are phished, it is almost impossible to touch your assets) and unauthorized withdrawals of your digital assets.
Finally, since exchanges occasionally get hacked, it is imperative to keep as little money as possible in their online wallets. After trading, it is advisable to either cash out or withdraw the coins to your hardware wallet (or wallets).
