No matter which cryptocurrency you plan on trading or holding, there are some extra precautions you should take to make sure your investments are safe. Cryptocurrency is rapidly becoming a new form of investment and many people are curious about how to begin investing in this type of currency.
Separate email account
First up, always set up a second email address to use with any cryptocurrency exchange you plan on using. Do not use an email address that you have used with a social media account or other forward-facing email address as it will be too easy for hackers to use social engineering to obtain access to this email. Your primary email address is not secure enough for cryptocurrency purchases.
You should enable two-factor authentication on this email address and if possible, consider one of the many hardware keys that can be encrypted for use with Gmail addresses.
Software based wallets
Never leave your cryptocurrency on an exchange after you buy it. You should have a cold wallet ready to accept it the moment it is purchased. A cold wallet is a type of wallet that is not connected to the internet in any way.
There are various types of software wallets that supports several different popular cryptocurrencies including Bitcoin, Litecoin, Ethereum, Ripple, and more. Even some of the more obscure and meme coin cryptocurrencies like DogeCoin are supported by some cold wallets. Do some research and decide which one is best for you.
Software cold wallets are still not the most secure way to store your cryptocurrency. If you want to be entirely sure you are not targeted in a cryptocurrency hacking attempt, you should completely remove your wallet from your computer entirely. This is possible with the help of cold hardware wallets like Ledger and Trezor.
Both of these wallets are an additional and expensive purchase, but once they are correctly set up, you can be sure your cryptocurrency is safe. Even if your computer is somehow compromised with a keylogger or other malware in an attempt to learn your cryptocurrency passwords, the hardware wallet protects you by randomizing how you enter your PIN. The only downside to these devices is that they tend to be expensive and start at around $100 USD.
Don’t keep your wallet on your phone
Finally, it should be said that you should never keep your cryptocurrency wallet on your phone. It is too easy for this device to be stolen or otherwise accessed and it only takes a moment for the funds to be transferred and lost forever. Computers are less than ideal too, which is why a hardware wallet is often recommended over software wallets. Ultimately, it’s up to you to decide what security is best for your cryptocurrency.