The cryptocurrency market, although volatile by nature, still represents a dynamic and lucrative environment for all sorts of investors looking to make a profit through purchase, selling, and exchange of various types of digital money. According to CoinMarketCap, the overall market capitalization of the crypto industry currently sits at a staggering $286 billion, which is a sum that makes everyone want a piece of the pie. It stands to reason, as it is with any lucrative business, that cryptocurrency owners face enormous security risks, not only from hackers that keep on pushing the limits of creativity in order to come up with new ways to get their hands on as many crypto tokens as possible. This is one reason why a Hardware wallet is a vital piece of security.
What causes the danger of losing your tokens
The danger comes mainly because people have the wrong impression that blockchain technology provides perfect safety no matter how you decide to use it. In terms of cryptocurrency, the monetary transactions occur when a user decides to send a number of tokens to a peer. Each user has a public and a private key, both of which serve a certain purpose. The public key is like your address to which others can send Bitcoins, Litecoins, Ethereum, or any other cryptocurrency. The private key is for your eyes only and it allows you to send tokens to others.
The trouble is, a lot of people store their funds on places like GDAX, Coinbase, and other exchange platforms which means allowing these websites access to our private keys. Keeping your tokens this way facilitates the exchange process, and provides a sense of security because all of the major platforms keep a safety deposit on a computer that’s not connected to any network. Nevertheless, even with such shrewd security measures, occasionally hackers manage to get away with the loot. Recently, Canadian exchange lost over $190 million in crypto, which triggered alarms on all sides considering the safety of exchange platforms.
Let’s take a look at some actions you could take or avoid taking in order to protect your digital property.
Keep your tokens on a hardware wallet
This is one of the most basic ways of protection, just keep all you have away from anyone who would do you harm. A hardware wallet is a gadget that allows you to load your tokens and keep them safe by staying off the grid. You can keep your wallet at your side or anywhere you see fits, as long as you remember where it is. However, there’s a way to recover your lost funds even if some kind of misfortune falls upon your hardware wallet.
Hardware wallets are easy to use if you choose a proper solution. Most options come with Bluetooth or Wi-Fi connectivity that allows you to connect the wallet to an online device and manage your assets through a user interface. Let’s say you needed assignment help, and you decided to engage an essay-writing service or some other agency out there that accepts cryptocurrency payments because you don’t want to leave any traces that using a credit card would leave. All you have to do is start the hardware wallet management software, connect to your device and fill in the blanks.
The security benefits include keeping your private key entirely to yourself, and even if by some chance a hacker would utilize the moment when your hardware wallet is connected to an online device, your key is safe because it can’t come out as plaintext, so any attack would be futile.
If you are a long term investor and you don’t plan on trading your stash any time soon, paper wallets are arguably one of the best choices. It’s basically a piece of paper that contains both your private and public keys, which you can keep anywhere you want, as long as it’s safe. There is absolutely no risk of getting hacked, however, there is a catch! When the time comes and you decide to transfer a portion or the entirety of your paper wallet content, you have to use online services like blockchain.info or Electrum, whichever works best for you.
As we already stated earlier in the text, in order to send cryptocurrency to another user, you have to provide your private key, which means you will share this sensitive information with a third-party entity. It’s important to inform yourself about the best paper wallet options and make an informed decision. Seek out paper wallet software reviews to see what the users have to say about each candidate. Remember that you’re not reading a top paper writing service review while you probe the market you’re risking a potential loss of fortune, not getting a poorly constructed term paper essay or a book report, so be cautious.
If you are actively engaged in cryptocurrency trade and exchange market, you definitely require a solution that allows you to react as quickly as possible. All of us who keep track of the market flow understand very well how just a few minutes can make the difference between making a fat profit and losing most of your investments. For this reason, keeping your tokens offline is not a suitable solution and you simply have to create an online account and keep a portion of your asset online.
Hardware wallets are not a cheap solution, some of these gadgets cost more than $300 so many smaller investors have to come up with alternative solutions. With two factor authentication, you can rest assured that you’ll notice if someone is trying to illegally or without your permission transfer your asset to a different user. You can activate this type of identity check through Google, iCloud, or Facebook in case you prefer registering to online services using these social accounts. Moreover, platforms such as Coinbase and others also provide a 2-factor authentication process. Keep in mind that this is not a long term solution so never keep online more than you are ready to lose. Hackers stole more than $40 million worth of asset from Binance recently and obtained user data including two-factor authentication codes, API keys, and other information.
Conclusion on Hardware wallet and 2FA
There is no perfect solution to keep you safe from those who use their abilities to harm others online. These pieces of advice we have shared with you are your best defense tools, which you can amplify through constant learning about new threats and keeping up with the changes in the industry. As time passes by, it’s all but certain that new, more enhanced method of security will appear and provide even stronger safety measures. Until then, stay safe and invest intelligently!
About the Author
Michael Gorman is a highly skilled freelance writer and editor from UK who’s currently offering his assignment help services at Speedy Paper Reviews. Michael was always a passionate writer and he always enjoyed helping others, things which make this career perfect for him. In his free time, Michael enjoys writing blog posts about personal growth, education, and the world’s biggest mysteries. He can be reached 24/7 via Facebook and Twitter.