Life After the Token Sale. How to Protect Your Coins?

Over the past months a large number of incidents occurred in relation to the violation of the security of exchanges and the abduction of funds in the cryptoworld. Two South Korean exchanges — Coinrail and Bithumb — were attacked, from which 37 and 31 million dollars were stolen respectively.

At the beginning of our token sale that runs till August, 27 2018, the Ubcoin Market team has already told contributors how to protect themselves from scammers. But the question remains, how can you save your digital coins after purchasing bitcoins or altcoins? We will talk about this now!

1 — Offline Wallets. There are 3 types of them — cold, hardware and paper.

1.1 — Cold (software) wallets funds can be transferred into warm wallets (connected to the Internet) at the time of the transaction. Here is a vulnerable place when the scammers can find a hole in the code and use it to steal funds from the wallet. To protect fans of local wallets from scam it is highly recommended to install a reliable anti-virus on the PC. Free and trial versions of antiviruses rarely give good protection, so it’s better to spend some money to buy a licensed program and save money in your wallet. Among the constantly growing number of cold wallets firms, there are 2 most popular and often used — Electrum and Exodus. Electrum has a wide functionality, Exodus — user-friendly interface. The choice of altcoins in both of them is still small, but they gradually increase their number.

1.2 — Hardware wallets — these are the most reliable way to store coins today. It can be compared with a safe, in which under several locks (private keys and pin-codes), your funds are stored. Your coins are kept on a physical device without direct access to the Internet. For operations with crypto currency or fiat it is necessary to connect it to a PC or phone and enter a private key. And the device itself is also protected by a personal code, which gives a security guarantee when it’s stolen or lost. Such a wallet can be connected even to an unprotected or hacked computer, and the scammers can not steal the funds!

The most popular models of hardware wallets are Trezor, Keepkey and Ledger Nano S. All of them have a general principle of generating private keys in offline mode, equipped with a display for better usability and are of small size (Ledger Nano S — almost a USB flash drive).
This kind of wallet is good in everything, its security is the highest among all other types of electronic coins storage, and the only drawback is the price of the devices — about $ 90 for each of these models.

1.3 — Paper Wallets — grandmother’s way, which still works! The private key is simply printed or written on paper, is hidden somewhere offline and waits there for a hour X away from the Internet. No matter how surprisingly this may sound at the age of high technology, many experienced programmers prefer to store their keys this way.

2 — Wallet Diversification
This method is relevant not only for the crypto currency, but for all types of investments in general. It is not necessary to keep all virtual or fiat money in one place, it is better to distribute them among several deposits and wallets, shifting that part of the funds that you do not yet plan to use soon to a hardware wallet.

3 — Wallet Backup
If you make this simple and quick action in advance, then in case of loss / theft of your PC or mobile phone, you can pull out a backup of your wallet with all of your funds. When creating wallets, all private keys are stored only by their owners, therefore no one of support people can help you to return access to your coins if you do not have a backup of your wallet. To create such a backup, simply copy your program file to an external storage device and put it in a safe place.

4 — Protection of Communication Channels
By connecting to wi-fi in a public place (cafe or park), you can not be sure of providing a high level of security for your connection. Scammers easily recognize the information entered during the authorization, including logins, passwords and private keys. What happens next — you probably already guessed. The way out of this situation is to use checked and protected communication channels (reliable Internet connection) only.

5 — Buying UBC

We try to offer our contributors not just a project, but a whole marketplace infrastructure, which takes into account all the difficulties that users can face, including safety issues. Our team is working to ensure that the use of Ubcoin Market is easy and convenient for all participants, and security is at the highest level. The Ubcoin (UBC) wallet on the marketplace will be protected to the highest extent.