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.
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.
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