Trading with cryptocurrency, NFTs, and other digital tokens is very popular among investors. Unfortunately, the crypto boom in recent years has also attracted many scammers and hackers whose only goal is to steal your money and crypto assets. To prevent this from happening to you, we have compiled five important tips to help you store your crypto assets safely.
When trading with crypto, it is absolutely essential that you use a trustworthy and reputable platform that keeps your crypto safe at all times. Transactions on these platforms are conducted using highly secure encryption algorithms, ensuring that hackers have no chance of redirecting transactions into their own pockets.
If you use an online wallet to store your coins and NFTs, it is also extremely important to choose a secure and reputable provider that utilizes robust security and encryption technologies.
If you are not yet familiar with crypto investments, we recommend using well-known and established platforms and providers. These have extensive experience in crypto safety and invest a lot of money in securing their users and their assets. If you come across a crypto trading platform online that you have never heard of, first find out whether it is legitimate. Scammers often set up fake websites that mimic cryptocurrency exchanges. They trick users into believing they can trade cryptocurrency there. However, all users can actually do is deposit money on the platform. When they attempt to sell the “purchased” cryptocurrency, it turns out to be impossible. The invested money is then lost.
A secure platform or a reputable wallet provider is of no use if you do not properly secure your account. Hackers can then easily gain access to your account and empty your wallet within seconds. To prevent this, always use a strong and unique password. This means you should use this password exclusively for your crypto access or wallet and nowhere else. It should consist of a mix of letters, numbers, and special characters. Reputable platform and wallet providers also offer two-factor authentication. Use it! This significantly increases your security and that of your assets. If your login credentials ever fall into the wrong hands, the scammers won’t be able to access your account because they also need another authentication source, such as your smartphone or email access.
As soon as an unauthorized person attempts to log into your account but fails due to two-factor authentication, you must change your password. A password known to someone else is no longer a secure password.
If you want to store a large amount of cryptocurrency, NFTs, and digital tokens, the best option is to get a hardware wallet. This is also called cold storage. A hardware wallet is a small hard drive—similar to a USB stick. You can store your private keys on it, which are required to access your crypto assets.
The big advantage of hardware wallets is that they are invulnerable as long as they are not connected to your PC. Unlike an online wallet, where your private keys are stored in the cloud, your private keys in a hardware wallet are always offline. You only connect the hardware wallet to your PC when you need access to your crypto assets, such as when making a transaction or storing new private keys.
A device that does not receive regular security updates is more vulnerable to hackers. Always keep your devices updated with the latest security patches. This applies especially to your hardware wallet and the device you use for crypto transactions.
It is also a good idea to regularly back up your crypto assets. If your hardware wallet ever stops functioning, you will still have a backup in the form of a recovery phrase. Always store this recovery phrase separately from the wallet and never save it in the cloud. The best approach is to write it down by hand on paper and store it in a safe in your house or a bank’s safety deposit box.
Scammers are unfortunately very active in the field of crypto investments. There are now numerous scam tactics that fraudsters use. Phishing is very common. In phishing scams, fraudsters try to lure you onto a fake website, often a clone of a cryptocurrency exchange or an online wallet provider. They try to trick you into entering your login credentials on this fake website. If you do so, the scammers will easily gain access to your actual account or wallet and drain your funds.
Another trick frequently used by scammers is social engineering. They contact you via social media, email, or chats and attempt to build trust with you. This is often seen on dating platforms. Scammers pretend to be romantically interested in you—often over an extended period until you develop an emotional connection.
Then, at some point, they ask you for money or your crypto assets. They claim to need quick money or crypto because they are in a difficult situation. If you already feel emotionally attached to this person, it may be hard to say “no,” and the trap snaps shut.
Always be cautious when you receive an email or message from strangers. A reputable crypto platform will never ask you to verify your login credentials. And if a stranger online asks about your crypto assets or even requests a transaction, you should not comply—even if you believe you know the person well.
The above tips provide a solid foundation for securing and safely storing your crypto assets. The hardware wallet is particularly noteworthy, as it allows you to store all your private keys offline. The less contact these keys have with the internet, the better.
If you ever need to use your private keys and connect the hardware wallet to your PC, do so only on an operating system that has the latest security updates. This reduces the risk of hackers gaining access to your wallet.
Since many scammers use phishing and social engineering methods to steal crypto assets, always stay vigilant when browsing the internet. It’s always wise to critically examine every email or chat message from an unknown sender. Even with very authentic-looking emails or messages, you can often quickly detect that they are fake.
If you suspect you have fallen victim to a scam, you should change your passwords on crypto platforms as a precaution. If you notice any irregularities in your accounts or transactions, report them immediately to the platform or your wallet provider.
At Countwize, we can also assist if you have been scammed. We help you find information and guide you on what actions to take to recover your crypto.
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