CRYPTOCURRENCY WALLETS BEST PRACTICES

in #cryptocurrency7 years ago

Just like a physical wallet can be stolen, so also can your Digital wallet hence the need for anyone operating a digital wallet to be security conscious when using such wallets. indeed some solutions may be more secure than others for example, a hardware wallet or cold storage is much more secure than say, a desktop wallet or mobile. Regardless of what ever solution you adopt it is your responsibility to always adopt best practices in order to protect your assets.

Here are a few security tips to adopt:

1 Exercise Caution When Using Exchanges
The primary purpose of a Bitcoin exchange is to enable customers to trade Bitcoin with other altcoins and not to store funds hence it is expedient for you to move your assets elsewhere once your transaction has been completed, also endeavor to have two factor authentication(2FA) enabled on your account.

2 Little Amounts for Everyday Uses
A bitcoin wallet should be treated like a normal physical wallet in the sense that you wouldn't keep a million dollars in your wallet, the same consideration should also apply to your bitcoin wallet. In essence, it is considered best practice to keep only small amounts of bitcoin on your computer, mobile device, or server for everyday use. The bulkof your funds should be kept in a safer environment such as cold storage.

3 Backup Your Wallet
Always endeavor to backup your wallet. A wallet backup will protect you against computer failures and other human errors and also help you recover your wallet after your mobile device or computer is lost. your backup should be done regularly ,
stored in a multiple, safe locations and if you use an online storage platform such as dropbox, ensure that you always encrypt your backup.

4 Encrypt Your Wallet
When you encrypt your wallet or smartphone, it allows you to set a password and thus protect against against an unaurthorized withdrawals. This may protect against thieves but cannot protect against keylogging software or hardware

5 Never Forget Your Password
Make sure you never forget the password or your funds will be lost, permanently

6 Use a Strong Password
This point has been stressed since time immemorial in the case of cryptocurrencies, losing your password may mean a peramanent loss of access to any coins stored in such a wallet.

7 Keep Your Software up to Date
Always ensure that you keep your wallet software up to date, this allows you recieve important stability and security
fixes.

8 Avoid Clicking on Any Suspicious Links
Guys avoid clicking on suspicious links posted on websites,or chat groups on whatsapp etc..Many folks are known
to have had their credentials stolen unknown to them.

9 Use Offline Wallets
Also Known as cold storage, provides the highest level of security for savings. It involves storing your wallet in a secure place that is not connected to a network. It offers very good protection against computer vulnerabilities when done properly.
Hardware wallets, which are designed from the root to be a wallet and nothing else can allow backup, you can also recover your funds if you lose your device. example of hardware wallets include Trezor or ledger among others.

Finally,
Think About Your Testament
Your bitcoins can be lost forever if you don't have a backup plan for your peers and family. If the location of your wallets or your passwords are not known by anyone when you are gone, there is no hope that your funds will ever be recovered. Taking a bit of time on these matters can make a huge difference.

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Now i know why my hobby keeps telling his crypto pass

Do you know of any available offline wallet I can use in Nigeria?

trezor hardware wallet is nice option

U r the cryptoman!

Thanks for the complements :-D

good tips

thanks this was helpful!