How to store cryptocurrency safely
How to store cryptocurrency safely. How to be secure with your crypto
How to store cryptocurrency safely. Some basic rules to follow.
- Not your keys, not your money! Write your Mnemonic Phrase on a piece of paper or a specialized metal plate and keep it in a safe place. Remember, if you have your Mnemonic phrase, you can always restore your funds even if you lose your wallet. Never share it with anyone. More info is here.
- The hardware wallet is recommended. More info is here.
- Follow the internet security safety recommendations below.
- If internet security safety is followed, Software Wallets could be used for short holdings and trading.
- Always make a small test transaction before making a big one.
- Do not use the same wallet address for many transactions for a long time. A change of address is recommended.
How to store cryptocurrency safely. Importance of the mnemonic phrase safety
What is a Mnemonic phrase?
Typically, cryptocurrencies are stored in crypto wallets. When setting up your crypto wallet, one of the requirements is to set up a recovery mnemonic phrase to help you recover your crypto assets if you lose your wallet or forget your password. That is why it is imperative to keep this phrase a secret as you do with your private keys. This recovery phrase is the mnemonic phrase and is also called the wallet recovery seed. More info is here.
How to store cryptocurrency safely. Internet security is an important part of crypto safety
This guide gives you some highlights and short to-do’s on how to be secure and stay private using computers, tablets, and smartphones:
- Get a password manager like Bitwarden, Keeper, 1Pathword, or similar. Use for passwords 25 random symbols long minimum. Never use the same password on different sites or apps. Lock your password manager with the solid long non-logical phrase you write down and keep it safe.
- Use 2-factor authentication everywhere, preferably with the authenticator app, not text messaging.
- Do all your e-banking and crypto trading on a separate dedicated PC. Never use this PC for something else.
- Never do private and security-sensitive work on public WiFi. Use your mobile hotspot or wait till you get home or office under secured non-public WiFi.
- Turn off auto-connect on unknown WiFi networks on all your devices.
- Remove the default login from your office/house router and create your own. Do not use apparent names pointing to who it belongs to for your WiFi network name.
- Use the “HTTPS everywhere” utility when browsing. (some browsers have it by default, Chrome as an example)
- Do not click on links from unknown sources sent to you by email or messaging.
