Are you serious about keeping your cryptocurrency safe and secure?
Then you're going to want to keep reading! Here, we'll take you through three top tips to keeping your crypto secure and impervious to hacking.
1. Move your coins onto a hardware wallet
A Hardware Wallet is a physical device, similar to a USB stick, that holds your crypto private keys offline, eliminating the risk of malware, keyloggers, computer viruses, or other risks that software wallets and exchanges are vulnerable to. These devices allow you to retain the ownership of your private key, while also making it easy to trade with a wide range of cryptocurrencies when you safely connect to a computer. You can learn more about wallets here.
By securely switching between the functionality of hot and cold wallets, you can rest assure that your crypto portfolio stays in your hands, even if you lose the device. Your private keys are generated and stored on the hardware wallet which is then protected by a PIN and an optional passphrase. Should a thief take possession of your hardware wallet, it’s near impossible for them to extract your keys. Most hardware wallets will wipe the device after a certain amount of incorrect pin entries, further protecting your assets. The keys are never exposed to the internet so they can’t be stolen or copied. That’s why it’s known as cold storage.
There are a few companies leading the way when it comes to cold storage solutions: Ledger & Trezor. These two hardware wallet manufacturers are setting the standard when it comes to the usability and security of your cryptocurrencies.
2. Store your recovery phrase on a steel device
Your 12/18/24-word recovery phrase is used to access the cryptocurrency in your wallet. Anyone who knows your recovery phrase can access your wallet and funds, so it’s vital that you keep it private and secure.
If your hardware wallet breaks, is stolen or is misplaced, your recovery phrase can be used to restore it. But if your recovery phrase is stolen or misplaced, there is no bank or institution to back you up or give you a replacement. And because of the secure nature and random mathematical sequences used to generate your private key, there’s no way you or anyone else can recover it so you will lose access to your cryptocurrency.
Luckily, there are companies that have created devices to store your recovery phrase. The Billfodl, for example, is constructed of 316 stainless steel, with a melting point of almost 1400 degrees celsius. It can withstand more than double the temperature of an average house fire and is unaffected by any type of electrical hazard. Using a randomised set of character tiles, you simply recreate your recovery phrase in the steel unit, creating an almost indestructible backup.
3. Store your devices in a BilIfodl Faraday bag
The Billfodl Faraday Bag is a small, portable accessory that blocks electromagnetic fields. It protects electronics from being damaged by radio frequency interference (RFI) by not allowing radio frequency or electromagnetic pulse waves to pass through the material. The Faraday Bag will also ensure the protection of your electronic devices during an EMP (Electronic Pulse, which can be caused by solar flares). This means you can store your Ledger or Trezor hardware wallet within the Faraday bag, to ensure the device and your digital assets are resistant in the event of an EMP.
With just three products, you can ensure your crypto assets are stored in the most secure way possible.
Disclaimer: Information provided is for educational purposes and does not constitute financial product or advice. You should obtain independent advice from an Australian financial services licensee before making any financial decisions.
