Despite the popularity of cryptocurrency, there are still a lot of things undetermined. One of the biggest question marks surrounding the new economic market is security. Since cryptocurrency exists exclusively in a digital space, there are major security concerns when it comes to how to actually store digital currency securely.
To date, it is estimated that around $ 1 billion worth of Bitcoin a year has been stolen every year since 2018. This doesn’t even take into account missing or stolen currencies outside the popular Bitcoin. So when it comes to storing cryptocurrencies, what are the safest ways to protect your currency? Let’s talk about your options!
Ways to securely store cryptocurrencies
There are ways to store your cryptocurrency that don’t involve a digital-only storage system. For example, some choose to store a portion of their cryptocurrencies on what is known as a hardware wallet. These are essentially the equivalent of an external hard drive but for cryptocurrency storage and digital transaction history making them official.
These options aren’t great for those who plan to trade cryptocurrency frequently. Likewise, hardware always carries the threat of storage corruption and problems that can result from damaged storage devices. That’s why many choose to use another method: software archiving.
The best method: software wallets
The most popular method of storing cryptocurrencies is also the best in many cases. From taking full advantage of things like infrastructure as code to improving security measures by encrypting all aspects of storage, software wallets are becoming more secure. Here are some benefits of using a software wallet.
Access from anywhere
Security and access from anywhere may not actually seem complementary. Here’s the thing: software wallets use a number of security measures that keep your access points safe and protected from crypto criminals. A great example is the use of the software’s ability to operate on various operating systems. While this may seem like you are opening up to more data penetration points, you are fully supported by the protections of these operating systems and the program itself. MacOS, for example, is known to be largely virus-proof, which can help keep any security breaches out of software wallets that use MacOS.
2FA and other protections
Believe it or not, passwords are becoming more and more dangerous. The ways in which password inputs and data are stored are accessible by an avid cybercriminal. This is why two-factor authentication is so important. 2FA is the process that requires an additional way to confirm your identity at the login process. This could mean a passcode sent to your email or mobile number. There is also the Google Authenticator app used by many sites which can also work to ensure no one is accessing your cryptocurrency that they shouldn’t. There is also the benefit of 2FA in accessing mobile encryption, as mobile devices can often be less secure than desktop entry points. The 2FA and encryption methods in these software wallets can keep you safe, but you can always go one step further.
Additional encrypted security
If you are using a software wallet that is based on cloud technology or encrypted network configuration, you can enlist the help of infrastructure such as code and other security measures to be able to address the problems you have with security head-on. These methods make it easy to spot misconfigurations in your cloud-based software and immediately fix any errors that might cause exploits for your crypto wallet.
Exploring your safe options for storing cryptocurrency will likely lead you to the conclusion that software wallets offer the most benefits. Take some time to see how you might want to keep your coins and always remember that safety matters as much as analysis when it comes to winning the cryptocurrency game.
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