Keeping bitcoin and other cryptocurrencies safe is almost as important as buying through a secure exchange. CoinCheck is one of the biggest crypto exchanges in Japan and the world. It recently lost over $500m in digital assets after criminals attacked it. That isn’t strange in and of itself; crypto exchanges get hacked all the time.
Two things are notable about this hack. First, the amount of money involved is extraordinary. This may be the biggest crypto heist in history.
Second, the funds were stolen from a hot wallet; a digital wallet with a live Internet connection. This is yet another reminder that using a hot wallet — which is what most people do — can be dangerous.
To help you stay safe, this article will give you 5 tips for storing crypto safely after buying it. Tip #1 is…
1. Use cold storage
Cold storage wallets the main alternative to hot wallets. Using them involves transferring your crypto to an offline, physical carrier like a USB stick or a bank deposit box.
As a rule, cold storage is safe. Just remember that physical objects tend to get lost and damaged. If you have a good way to make sure your carrier is secure at all times — great. Otherwise, consider using the tips below to reinforce your hot wallet.
2. Activate 2-factor authentication
If you’re using a software wallet or an exchange-powered wallet, remember to turn on 2-factor authentication. This will make your wallet ask for confirmation via e-mail, SMS, secret code, or other method, giving you an extra layer of protection.
If you’re not sure how to use 2FA, check out our guide on using Google’s 2-step verification process and app.
3. Be careful who you trust your crypto with
A wallet can appear to be safe and still be dangerous. For example, stories abound of people buying crypto wallets that had been tampered with and losing 5 and 6-figure sums as a result.
To make sure this doesn’t happen to you:
- Only buy secure cold wallets from trusted vendors.
- Only use hot wallets you trust.
- Never expose a cold or hot wallet to risk, e.g. by logging in from an unencrypted, public WiFi hotspot.
4. Use random password generators
Passwords that use real words, common phrases, and notable numbers are all easier to crack than completely random ones. The problem is that for most people, coming up with a truly random combination of characters is impossible.
One thing you can do to help yourself is use a service like this one to get a completely random password. This way, hackers will have a much harder time stealing from you.
5. Be mindful of ways people can access your wallet
Does someone else have access to your phone, your computer, or even your billing information? Be careful; your crypto could be at risk.
To wit, a man called Cody Brown lost $8,000 in tokens when hackers used his billing information to access his Verizon number and associated Coinbase account. The lesson is to be very careful, always remembering the roundabout ways criminals can harm you.
As you already know, cold storage is an effective way to store crypto. Unfortunately, it comes with its own set of problems. Something as simple as losing a scrap of paper could potentially cost you all your crypto assets.
One solution is to use a hot wallet that has a number of security features. For example, CoinCola gives users wallets with 2-factor authentication and multisig transaction functionality while keeping most of their funds in cold storage. The result is a compromise between safety and usability.
To learn more about CoinCola and its safety measures, please proceed to CoinCola.com and get a safe hot wallet today!
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Founded in 2016, CoinCola is a Hong Kong based company offering both over-the-counter cryptocurrency trading and crypto-to-crypto pair trading exchange. CoinCola now serves millions of users from over 150 countries with our fast, secure, and reliable trading services. We support BTC, ETH, BCH, LTC, USDT, DASH, and XRP. Visit www.coincola.com to invest in digital assets.
Disclaimer: Trading and investing in cryptocurrencies, also called digital currencies, crypto assets, and so on) involves substantial risk of loss. All informations are used at your own risk, and any content on this site should not be relied upon as advice or construed as providing recommendation of any kind.