Digital currency is a convenient alternative method of investing and budgeting. However, it requires similar security to online banking to be used safely and effectively. Here are six ways to keep your cryptocurrency safe.
1. Allocate One Device
If possible, you should only use one specific device for your cryptocurrency transactions. Whether that device is a personal computer or a mobile device, you can keep transactions to a minimum, avoid unnecessary security risks and customize your security to be cryptocurrency-specific. If you prefer to use the same model or type of device for all your online activities, be sure to differentiate your devices.
2. Backup Your Data
However, be sure not to keep your cryptocurrency data confined to its designated device. You should back up all your cryptocurrency-related data. No matter the security tools you apply, there is always a risk of a hacker stealing your information. While a physical device being stolen can always be replaced, the same cannot be said for copied or corrupted data. If you keep backup files, then you’ll have clean data to go back to if anything happens to your device or your main data. You should utilize a non-network storage device, such as an external hard drive because it’s more secure than cloud storage.
3. Invest in Segmentation
Network segmentation is a great security tool. You can segment various parts of your network with firewalls to improve security features. Microsegmentation tools improve on the concept of network segmentation. It avoids the manual applications network segmentation requires, which can be error-prone and inefficient. Instead, microsegmentation creates individual workloads, storage and databases, each with its own access points and requirements, all within one host firewall. It’s a more granular policy that allows for more visibility, security compliance and efficiency.
4. Refrain from Using Public Wifi
Because public wifi is meant to be easily accessed and either doesn’t require passwords or provides freely accessible passwords, it’s a dangerously unsecured access point for sensitive information. Its unsecured nature means hackers can easily access people’s devices and steal or corrupt data. Whenever possible, you should refrain from accessing your information on public wifi. Ideally, you should only ever access cryptocurrency data on your own private and secure network. If necessary, you can access it on a different network, as long as that network is highly secure and trusted. Sometimes, public wifi is unavoidable, in which case you should make use of a VPN or Virtual Private Network. A VPN encrypts your data from end-to-end and prevents cybercriminals from accessing your information through unsecured wifi.
5. Leverage Multi-factor Authentication
Like segmentation, multi-factor authentication improves on older, less effective security measures. Instead of just utilizing one authentication factor, such as a password, apply two or more levels of authentication requirements to your device. This way, it will be much more difficult for hackers to gain physical or digital access to your device and information. Passwords are still common parts of multi-factor authentication, but you can also add biometric authentication, hard or soft tokens and security questions.
6. Secure Devices and Wallets
It may seem obvious, but one of the best things you can do to keep your devices and data secure is to secure them. Whatever device you choose to use for your cryptocurrency, make sure you install good antivirus and antispyware software, choose the maximum security firewall and perform manual checks along with automatic monitoring. You should also secure the digital wallet you use for your cryptocurrency. Choose security applications with stellar reputations and utilize encryption to keep your data and private keys safe. For an extra layer of protection, you can use two different digital wallets. For example, you can use one wallet as a storage space for the cryptocurrency you want to save and build, and another wallet for your active transactions.
Cybersecurity has many applications and options to protect your data, including cryptocurrencies. You can leverage most forms of cybersecurity for the security of cryptocurrencies.
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