3 Best Practices to Safely Store Your Cryptocurrency Private Key
Engaging in cryptocurrencies is akin to being your own bank – taking complete responsibility of your funds and transactions in your own hands. In today’s vulnerable cyber world, managing cryptocurrency securely can be a real cause of concern.
Keeping an eye on the recent trend of cyber crimes and online frauds related to the cryptocurrency market, it is of utmost importance to ensure that all transactions are handled in a safe and secure manner.
Private key or seed key is one of the most crucial aspects to safeguard in this regard. Especially the newbie investors often deal with the private keys in a careless manner – thus jeopardizing the security of their cryptocurrency funds.
Let’s find out three best practices to secure your cryptocurrency private key.
Use Hardware Wallets
Hardware wallets are an excellent tool to secure your private key. It looks similar to a flash drive and has been designed specifically for storing altcoins in a secure manner. These devices generate private and public keys via mnemonic phrase when initialized. While mobile/desktop wallets are also quite secure for small investors, if you are serious about your business, hardware wallets are much more trustworthy. Ledger Nano S and Trezor are a couple of highly recommended hardware wallets that can protect your private keys effectively.
Don’t Use Online/Cloud Storage
Online storage is one of the most vulnerable storage mediums that are susceptible to cyber-attacks. As a rule of thumb, make it a practice not to store your private key in any online medium, email or cloud storage. If you don’t use hardware/desktop wallet, it is better to store your private key in an encrypted offline flash drive.
Never Take a Screenshot/Photograph of Your Private Key
We often think that our mobile handsets can be a safe place to store our confidential information. But in reality, you are actually making it straightforward for the hackers to obtain your confidential information. Phishing or malware injections can be a dangerous prospect that can compromise the security of mobile devices. Hence taking photographs/screenshots of your cryptocurrency private key with your smartphone should strictly be avoided.
No matter if you are looking to invest in a new type of altcoin or keep track of your existing cryptocurrency portfolio, you must follow an acceptable best practices guideline to minimize the associated risks. If you can adhere to the tips mentioned in this article, it can go a long way to protect your cryptocurrency fund from online fraud and hacking attempts.