It’s no surprise that you’re starting to invest in cryptocurrency. It’s on the rise and is expected to revolutionize the financial markets completely. However, being new does present some problems.
The rise of cryptocurrency has led to a lot of new financial scams. If you want to get involved in the crypto market, you’ll need to take crypto safety seriously. The four tips below will help you keep cryptocurrency in your wallet safe.
1. Never Give Out Your Private Key or Seed Phrase
Your private key and seed phrase is like your password to your cryptocurrency assets. Your private key is what allows you to send transactions and view your assets, and your seed phrase allows you to access your investments on a cryptocurrency wallet you’ve never used before.
Unfortunately, you’ll encounter people who try to get you to hand these things over. The best way to keep crypto safe is never to give this information to anyone. There’s no reason for anyone other than you to know this information.
2. Use a Hardware Wallet
Cryptocurrency has gotten much easier to use over the years. There weren’t many applications available that let you quickly move funds. With Metamask, Trustwallet, and other desktop and mobile wallets, this has gotten much easier.
Of course, software-based wallets also come with risks. You have to trust that the device you’re using is clean and doesn’t have exposure to malware. A hardware wallet adds an extra layer of security that adds an authentication method when you want to take action with your wallet.
3. Don’t Connect Mobile Wallets to Random Websites
Mobile wallets give a lot of flexibility for working with DeFi apps. With a push of a button, you can gain access to a wide range of financial services. However, that does come with some risks.
When you allow a website to interact with a mobile wallet, you’re permitting it to spend your cryptocurrency. This isn’t an issue if you interact with established websites. Less-known websites, on the other hand, need to be vetted more carefully.
If you still plan to interact with less established websites, set a spending limit on that website. Doing this means they can’t withdraw all your money and leave your account dry.
4. Store Cryptocurrency on Cold Storage
If you’re like many people, you’re using cryptocurrency as an investment. You plan to hold Bitcoin, Ethereum, and other coins for a long time period. You don’t have any intention to sell any of your assets.
If you’re in this situation, keep your cryptocurrency in cold storage away from the internet. Keep your crypto wallet in a safe, and don’t access it unless you need to move funds. You can move anything you need to spend into a live wallet and get info about how you can transfer those assets to cash.
Don’t Underestimate the Importance of Crypto Safety
Even though cryptocurrency has been around for a while now, it’s still the wild west in parts of the crypto ecosystem. There are scams, hackers, and other threats that you can’t afford to ignore. Keep up to date on crypto safety advice so you can learn the best way to keep crypto safe.
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