Although you don’t technically ‘own’ cryptocurrencies, what you do own are private crypto keys, which must be stored securely in order to protect the information of your private transactions via the blockchain.
With your crypto keys playing a central role within your transactions, here’s how best to keep them safe.
1. Understand the risks of storing crypto keys
Before we get into how to keep your keys safe, it’s important to understand the risks associated with storing them. Your crypto keys are essentially a form of digital information that can be hacked, just like any other type of online information.
What’s more, if someone was to gain access to your keys, they would be able to see all of the transactions you have made and could even use your crypto coins for themselves.
Therefore, it’s important to take measures to protect your keys and keep them as safe as possible.
2. Use a secure crypto wallet
The first step to keeping your crypto keys safe is to use a secure wallet. A crypto wallet is essentially a digital way of storing your keys and can be accessed via an online site or browser extension.
When choosing a wallet, it’s important to select one that offers a high level of security. This might include features such as two-factor authentication or multi-signature technology.
You should also consider the customer support offered by the wallet provider, in case you run into any problems or need help recovering your keys.
3. Keep your keys offline
One of the best ways to keep your crypto keys safe is to store them offline. This means they can’t be hacked or accessed by anyone without physical access to your computer or device.
There are a few different ways you can keep your keys offline, such as using a cold wallet to store them. A cold crypto wallet is a device that is not connected to the internet and therefore can’t be hacked.
This includes storing your keys on a USB drive or hard drive that you have physical access to.
You could also write down your keys on a piece of paper and store them in a safe place. This is a simple way to keep your keys offline, but does mean you are trusted not to lose the piece of paper!
4. Use strong passwords and encrypt your keys
Another way to keep your crypto keys safe is to use strong passwords and encryption. This means that even if someone was to gain access to your keys, they would not be able to decrypt them and use them for themselves.
When creating passwords for your keys, make sure to use a mix of uppercase and lowercase letters, numbers, and symbols. The longer the password, the better.