As Bharat Bhise repeatedly reminds
investors in cryptocurrency, your crypto wallet is your entire vault. This is
where your holdings are kept, and should virtually be accessible no matter
where you are in the world. But the trouble with handling a form of currency
that is entirely virtual is that it gets exposed to digital threats. Much in
the same way that we’re all concerned about getting our real-world wallets or
valuables stolen, crypto traders, particularly ones just starting, must be
vigilant about the safety and security of their crypto wallet.
Here are some ways to ensure that your
wallet and your cryptocurrency holdings remain invulnerable. And especially to
malicious threats in the digital world.
1. Go beyond the standard
Bharat Bhise reminds us that even in our
homes, we hardly ever settle for the locks that come with the place. We add an
extra security measure or two, like security cams or double bolts. The same
needs to get done for your crypto wallet. Don’t just rely on the provided
security of wallet providers. Some companies
provide extra encryption as needed, including the use of private keys.
2. Always
create backups
As they say, don’t put all your eggs
into one basket. A backup
of your cryptocurrency wallet will ensure that
in case of hardware failure, corruption, or even human error, you’ll have a
chance to get your holdings back. Bharat Bhise adds that it also helps if your
PC or phone gets stolen; you’ll be able to restore your wallet.
3. Go into cold
storage
Cold storage refers to taking a majority
of your cryptocurrency and putting them in a safeguarded
vault. This method is offline and done by storing
the crypto coin’s private keys away from the internet. Leave only a small
amount of coins in your wallet. So in case it gets stolen, you won’t have lost
a lot.
Bharat Bhise reminds everyone to stay
vigilant and protect their wallets the way we’d defend our real ones. No one
wants to be robbed online or offline, after all.
