A crypto wallet connected to the internet is not a safe way to store your crypto assets. Even newbies to the crypto market will quickly be able to find out about this. However, if you are actively involved in the crypto market, you will need to maintain some of the crypto assets in an online wallet. While an online wallet is less secure than a cold storage wallet, it is still possible to keep it safe. Here are some tips on how to do it.

You must Implement Two-Factor Authentication

All online wallets come with a password. The most secure online wallets come with 2FA. This mechanism adds a second layer of protection, through a one-time confirmation code, which is time-sensitive. Some of the ways to get this code are via email or via your phone number.

It Should Only Contain a Small Percentage of Your Total Holdings

If you transact using crypto often, keep only the amount you need in the online wallet. The rest of your crypto assets should be in cold storage. If it is an exchange wallet, only leave the amount you need to trade in the wallet. The rest of your cryptocurrency holdings should be in your hardware wallet.

Use a Strong Password

All online wallets come with a password as a basic security measure. Ensure that you use a strong password, about 20 characters long. It must contain letters, special characters, and numbers. In short, add everything to it, making it difficult to crack. This may sound ridiculous, but many times people go with easy passwords they can understand. When dealing with investment assets, it’s important to have strong passwords. It’s worth writing down a strong password, opposed to being lazy and risking the chance of losing your hard earned money.

Update Your Antivirus and Other Software Often

Every time a new update is released, you must ensure that you receive it. For some, this can seem like an annoyance. However, unless you have the latest software updates, hackers will target you. Sometimes they look at the latest updates to determine where a weakness exists so that they can hack into those computers without the update.

Implement the Multi-Sig Feature

This feature is one of the most secure methods to store Bitcoins. This feature works by requiring a confirmation from three or more other wallets. As a result, even if a hacker were to access one wallet, they would not be able to transfer the funds out of it.

Have a Backup for When Things go Wrong

At some point in your life, you might become incapacitated and unable to access your crypto holdings. In such a case, it is a good idea to have a plan in place for someone to access your crypto holdings on your behalf. For instance, you could place the password and private keys in a safety deposit box, which can be accessed once you are incapable of doing so on your own.

Summary

With the few tips above, keeping your online crypto holdings should not be so difficult. Other measures you can take including using a clean browser that does not have potentially vulnerable ad-ons, avoiding public W-Fi when you access your crypto holdings, and creating a dedicated email to access your crypto holdings.

Image Source: Flickr

Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the crypto currency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal or accounting advice. This material has been prepared for informational purposes only and is the opinion of the author, and is not intended to provide, and should not be relied on for, investment, tax, legal, accounting advice. You should consult your own investment, tax, legal and accounting advisors before engaging in any transaction. All content published by Visionary Financial is not an endorsement whatsoever. Visionary Financial was not compensated to submit this article Please also visit our Privacy policy; disclaimer; and terms and conditions page for further information.

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