As a crypto trader, even with the security offered by the blockchain, the risk of a hacking attempt is always there. There are that many easily accessible ways that will help you secure your virtual assets. After all, investing in crypto currency opens up a world of financial options, especially at a time when traditional fiat currencies are being devalued by inflation and huge government debt.
While crypto remains a strong hedge against negative movements in the equities and traditional currency markets, it carries an inherent risk: hacking and theft of virtual assets. In this article, we look at the steps you can take to secure your crypto assets and find out why choosing a wallet is not simply a matter of comparing costs or accepting a default product from your coin exchange.
The avoidable dangers of the online experience
When most people think of online dangers, having their email address leaked in a data leak or needing to change a password due to a phishing scam usually comes to mind. but if your more sensitive info is retrieved, it can lead to massive damage.
Although, it is important to recognize that oftentimes, unless a user directly downloads malicious files onto their device or fills out the mentioned sensitive information to an untrustworthy website, a highly damaging hack is extremely unlikely.
In any case, for users concerned with their data privacy, even using a simple tool such as a VPN is going to help out dramatically. Upon using a reputable VPN service provider, a much safer and overall more secure online experience is a given.
Of course, that experience would apply to the digital assets as well. As mentioned, the security of the blockchain is a thing often praised and discussed, but one can never really have too much of it. After all, the assets are going to be extremely valuable to the owner, thus they should do their best to guarantee their safety.
Some of the more advanced steps may include learning about the best crypto wallets on the market and how to obtain a wallet from a trusted provider.
Hot vs. cold wallets and why are you may need both
There are two main types of crypto currency wallet where you can store your public and private crypto keys.
Hot wallets are connected to the Internet and allow crypto currency to be used easily – especially for retail transactions. Online crypto wallets hosted on websites also fall into the hot category.
The advantages of a hot crypto wallet are ease of use and quick access to crypto assets for trading purposes. The overall versatility is certainly something worth considering, especially if some of the more basic privacy and security steps are already implemented.
Cold wallets on the other hand, are a storage medium for your public and private keys that are never connected to the internet at any time. Some traders choose to store their crypto key information on a USB drive, while others opt for “cold storage” options like printing or writing the codes on paper and keeping the document in a fault or bank deposit box.
A cold wallet offers a higher degree of security than a wallet that is connected to the internet, but is also at risk of being stolen or lost due to its physical nature. Of course, if the user is not careless though, a cold wallet will serve them in the exact same way a normal one would.
Striking the perfect balance between flexibility and security can be challenging for crypto traders.
One effective strategy is to keep your crypto savings in a cold wallet, preferably in a highly secure location, while the funds you use for active trading should be kept in a separate wallet, which can be connected, to the Internet for convenience.
This way a user gets the best of both worlds, capitalizing on the main advantages of the hot/cold crypto wallets. This is the recommended way to go for those worried about their privacy and overall security.
Using Cryptocurrency for Gambling
As crypto gets larger, more and more industries and markets open themselves up to the coins, offering customers an alternative, often safer payment methods. The bigger coins like BTC or Ethereum are going to be available almost anywhere, but even smaller ones have been breaking into some niche areas of online entertainment, particularly, gambling.
For example, in gambling and beyond, players have access to various games through a wide array of different coins. This array will only get larger as the years go by, and cryptocurrencies get more mainstream.
In gambling, we may also observe how real money games with cryptocurrencies are available at the more reputable and bigger casinos. Their offerings, encompassing slots, classic card games, as well as progressive jackpots, can be accessed with major coins on the market, which adds to the convenience of casino games. Such implementations of cryptocurrencies are not only exciting for the coin enthusiasts but also for the players involved in the various aspects of the gaming world, as they can enjoy lower fees, faster transactions, and anonymity, ultimately, enhancing their gambling experience.
After all, with all the security measures described above, a gamer can guarantee a faster, smoother, and certainly more secure experience when engaging in their favorite pastimes, whether that is in the form of purchasing video games or engaging in casino games with crypto.
Conclusion
Securing your crypto assets effectively through a combination of hot and cold wallets and investing in cyber security defenses like a VPN and anti-malware measures will help to ensure a stress-free and enjoyable trading experience as you grow and secure your digital assets over time.
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This page was last updated on March 14, 2024.
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