How to store your cryptocurrency safely?
This is a guide mainly for beginners about how to store cryptocurrency safely? One of the best things about cryptocurrency is that it can be your own Swiss bank. Meaning you can store as much as money you want with complete privacy. However, this comes with a big price. If you lose your id password or crypto wallet there is no bank or government to save you. Your crypto is gone forever. So it is very important that you know how to store cryptocurrency safely?
There are countless cases where people lost their million-dollar worth of crypto. Mostly due to their own fault. It’s better to be safe than sorry. So naturally, it’s very important that you store your crypto very safely. There is a countless example where people lost million worth of cryptocurrency due to negligence or by some hacker. I am gonna tell you some important steps that you should take to keep your crypto safe.
ID Password On a Piece of Paper
The first step is to keep your ID Password On a piece of Paper. Take a pen and paper then write down your ID password then keep it safe in a different place. Also, be careful that some random person or house cleaner can not get the paper by accident. It’s a very important and responsible thing to do. Because a hacker can not hack your ID password from paper. Furthermore, if your house burns down or there is a water leak you will not lose your crypto account. This process might look silly or old but trust me it works.
Secondly, you have to use a strong password to keep your account safe. Most people neglect this simple thing. Here is a problem, hackers nowadays use a brute force method to crack open a password. How does this work? A computer guesses the password a million and a billion times and ultimately one works. And if you use a simple password I can crack it a short time. But if you use a password with number, later and sign combined then it’s very hard to guess the password. You can try and take the help of a password generator. Normally they create very strong passwords however I still suggest you create the password by yourself.
Check For Malware On Your Device
Make sure your computer doesn’t have any malware or virus. This is something even professional PC users ignore. If you clicked any questionable site or link in past your device might be compromised. If that happens hackers can easily get all of your information. Not to worry, you can check if your Personal computer has any kind of malware virus by installing a free software called Malwarebytes. Install it and check for malware. It’s very easy to use not to mention very safely.
The last of your security should be your crypto wallet. What is a crypto wallet? A Crypto wallet is where you store your cryptocurrency. There are two types of crypto wallets. One is a software wallet and the other is a hardware wallet.
Software wallet: A software wallet is something that keeps on your device. It’s like some other software. You install it on your device and keep your cryptocurrency there. There are some good software wallets and the best part is that most of them are free. However please remember if your device is compromised and then so is your wallet. If you want to know more about software wallets and read the article I wrote about the Best wallet for cryptocurrency 2021.
Hardware wallet: A hardware wallet is a flash drive. You connect the device then store your ID password and disconnect the device just like a pen drive. The great thing about hardware wallets is that hackers can not have them remotely because it’s not connected to the internet. However, the hardware wallet is not free. You have to invest some money to get a hardware wallet. It is however safer than a software wallet.
There are countless cases where people lost their crypto due to their own ignorance or by some random hacker. If you want to know more about this then read my article named The biggest loss of bitcoin in history. Make sure you do not end up like any of these people. Most of the people lost their crypto by their own fault, unfortunately. Always remember this common phrase, Better safe than sorry. I hope by reading this article you have some understanding of How To Store Your Cryptocurrency Safely.