Blockchain technology provides some natural security because of its decentralized system. However, no financial data is ever 100% safe online. Security is important when it comes to any cryptocurrency holdings and dealings. As we continue our blog series on Crypto Security 101, let’s take a look at 5 simple tips to help you feel safer with your digital assets.
It’s wise to use a separate email address specifically for crypto assets. This can keep your digital holdings apart from other important personal or traditional financial data.
Make sure you enable two-factor authentication, no matter what email address you use for crypto. Do not use the texting or phone call method for this. Use an authenticator app like Authy or Microsoft Authenticator. If your email provider allows use of a security key like YubiKey, that’s an even better option. You should avoid anything tied to your phone number, so it cannot be spoofed or changed. 2FA with texting can also be dangerous if bad actors are able to gain access.
Never reuse common personal passwords for cryptocurrency accounts. Also avoid similar passwords. Adding an exclamation point or two won’t fool any hackers or AI malware. Use a password manager like Bitwarden or Dashlane. This is a good idea for all of your online passwords, as these programs have apps for both mobile and desktop devices. Your passwords are easy for you to access anywhere and they are kept well-protected. Of course, your password access to this software should be very unique and strong, so the password account itself cannot be accessed by any bad actors.
It can be difficult remembering passwords and all the different variables required by different providers (capital letters, numbers, special characters, etc.). This is why password programs can be helpful. This allows you to create even more complex passwords that are unique and strong. Avoid predictable words, names and number combinations that might be easy to figure out if someone knows anything about you.
Just like you look at your credit card statements each month to make sure there aren’t any fraudulent charges, you should monitor your crypto assets. Look for any suspicious activity or misinformation. One drawback of crypto transactions is that there is not much repercussion if assets are sent to the wrong address or fraudulent dealings are taking place. Keep a close eye on your holdings and any transactions made to minimize risk and catch potential problems before they get worse.
These are a few simple ways to have better crypto security and protect your digital assets. In fact, these are good tips for all online activity. For help with all your financial needs—both traditional and cryptocurrency investments—contact Illumination Wealth today.
Special thank you to Jacob Phelps, CFP© for providing the source material for this article.