Essential security practices to protect your cryptocurrency investments
Unlike traditional banking, cryptocurrency transactions are irreversible, and there's no customer service to call if your funds are stolen. You are your own bank, which means you're solely responsible for securing your assets. A single security mistake can result in permanent loss of funds.
The good news is that with proper security practices, your cryptocurrency can be more secure than money in a traditional bank. This guide will teach you the essential steps to protect your wallet and keep your investments safe from hackers, scammers, and accidents.
Your private key is the password to your cryptocurrency. Never share it with anyone, and never store it digitally unless it's encrypted. "Not your keys, not your coins" is the golden rule of crypto security.
Write it down on paper and store it in a secure location
Your seed phrase (recovery phrase) is a 12-24 word backup of your wallet. Anyone with access to your seed phrase can steal all your funds. Never take a photo of it or store it on any device connected to the internet.
Use metal backup plates for fire and water resistance
Use unique, complex passwords for every crypto-related account. A strong password should be at least 16 characters long and include uppercase, lowercase, numbers, and symbols. Never reuse passwords across different services.
Use a reputable password manager to generate and store passwords
Keep your devices secure with up-to-date antivirus software, operating system updates, and avoid downloading suspicious apps. Use a dedicated device for crypto transactions if possible, and never access your wallet on public Wi-Fi.
Consider using a hardware wallet for maximum security
Scammers create fake websites and emails that look like legitimate crypto services to steal your credentials and seed phrases. Always verify URLs and never click suspicious links.
Protection: Bookmark official sites and enable anti-phishing codes
Malicious software can record your keystrokes, steal clipboard data, or take screenshots to capture your private keys and passwords.
Protection: Use antivirus software and hardware wallets
Attackers convince your mobile carrier to transfer your phone number to their SIM card, allowing them to bypass SMS-based 2FA and reset passwords.
Protection: Use authenticator apps instead of SMS 2FA
Scammers manipulate victims into revealing sensitive information through impersonation, fake support, or creating urgency. No legitimate service will ever ask for your seed phrase.
Protection: Never share private keys or seed phrases with anyone