Crypto Security Checklist for Investors
Crypto’s popularity may have attracted several investors. However, investors can also get trapped in security breaches and lose their precious investments.
The question therefore is: in this vast crypto ecosystem, how can you secure your crypto and effectively protect your investments as well?
To help you navigate this question we have compiled a ready checklist. This checklist alerts you of the possible security risks that crypto investors are often exposed to.
First up securing your crypto: The rationale
Just as there are scams in traditional banking, even crypto is exposed to many such scams that could make investors lose their valuable crypto investments. Though the digital assets on the blockchain are considered to be extremely secure, however, new investors should avoid hacking attacks. Towards this end, they need to understand the importance of unique passwords, besides learning to avoid phishing attempts.
How to secure your crypto: A checklist compiled for you
You may need to do the following, if you want to secure your crypto.
- Enable two-factor authentication
The thumb rule to maintain the security of your digital asset is to keep your password extremely private. There are times when new investors would store their passwords either online or offline for fear of losing it.This is precisely where two-factor authentication comes into play. It is number 1 on the crypto security checklist.
A two-factor authentication (also referred to as 2FA) requires a two-level check while logging in or transferring digital assets. Typically, it includes a regular password plus a one-time password. Enabling a 2FA helps investors secure their cryptos more efficiently, even if their password gets leaked due to an unlikely event.
However, there is a caveat here: never share your OTP with anyone.
2. Use unique passwords and emails
If you are opting for a crypto exchange to trade and invest in cryptos, you should do a thorough research to determine which platforms provide the maximum amount of security and transparency, like Zebpay.
Further, one should also set up a new email specifically meant for crypto transactions and use passwords that are not used in any other platforms.
Moreover, new investors trying to understand how to secure their crypto can also use apps and password managers to set up unique passwords and store these passwords safely and regularly.
3. Watch out for fake sites and apps.
One of the most common risks that investors must be aware of is to be careful of fake sites. Prior to buying any crypto asset, new investors must look at how legitimate the crypto is as well as its underlying purpose. Never get solely guided by social media popularity or eye-catching advertisements, as these can be faked.
Also, opt for safe and transparent crypto exchanges like Zebpay to keep your investments effortlessly secure.
Always double-check for minor differences between an original website and a fake website, as fake websites are usually very similar to the original website. Even if you are downloading an app, ensure it is the official app and not any other app that closely resembles the original one.
You need to download apps only after you have thoroughly verified it from the official website of the platform.
4. Avoid phishing attempts.
Phishing scams are often conducted by trained professionals who attack the vulnerability and lack of knowledge of new investors. In a typical phishing attack, hackers usually pose as authority figures and demand the transfer of assets to avoid a greater loss. They can also give attractive offers as baits, which involves sharing private details of your crypto investments. They may even gain access to some publicly available information like your email and use them to communicate with investors and establish their credibility.
Having a two-factor authentication in place and reading more and more about crypto before falling trap to such scams will help investors understand how to secure their crypto.
5. Use different wallets
New crypto investors must learn about the concepts surrounding hot wallets, cold wallets, custodial wallets, and non-custodial wallets. They should use this knowledge to their advantage.
A non-custodial wallet is one where the private keys remain with the investor. Here, no one can help once the private key is lost, and the investor must bear the sole responsibility for it.
A custodial wallet, on the other hand, is one where another platform controls the private keys. While this exposes the private key to other parties, it could come in handy and provide additional security for your crypto through crypto exchanges.
Hot wallets are web-based wallets and digital wallets that are connected to the internet. Cold wallets are more physical-based wallets wherein the need to gain access to the physical device is essential for a hacker to hack.
Crypto exchanges like ZebPay use cold wallets through computers that have never been connected to the internet, to keep your crypto investments secure.
By whitelisting, you can add addresses to whom you want to transfer funds regularly. This way, even if your account is compromised, the attackers will not be able to transfer your crypto to any other address or wallet since they are not whitelisted. Incorporating whitelisting ranks high on the checklist of how to secure your crypto; primarily because of its simple yet effective mechanism.
Though there are a number of ways in which attackers can hack into your accounts, however, we hope that this comprehensive crypto security checklist will help you get started with understanding how you can secure your crypto in the most efficient way possible.
Further, Zebpay stores 98% of the crypto in cold wallets making all investments in this crypto exchange completely secure. With majority of Indian crypto investors placing their trust on Zebpay, you can start your safe trading journey on Zebpay today!