How to secure your cryptocurrencies

you're interested in Bitcoin, are you tempted by the increase in altcoin rates but at the same time protect your cryptocurrencies against theft? Have you missed the opportunity to earn a good earnings a few times, but still have not decided to invest in cryptocurrencies because you are afraid that hackers will rob you of your fortune? Find out how to protect your cryptocurrencies. It's not that hard.

For people who are just looking to enter the cryptocurrency market, fear is often a barrier. Some are afraid of that "It's definitely a hill" and the prices of Bitcoin or other known tokens and altcoins will now fall. Others fear that hackers will deprive them of their savings, regardless of whether prices in the cryptocurrency market will fluctuate favorably or not. Both may be right, but there are of course ways to avoid losses. So let's explain how to protect yourself from losing cryptocurrencies as a result of illegal activities, i.e. in short: how not to get robbed.

The cryptographic key is the most important

Let's start with the most important. You can't have it yet bitcoin, Litecoins, Ethereum or other cryptocurrencies. It is a digital currency, so you can speak of a right of possession, not a possession. Everything indicates that we will never physically have them - and why? This is a significant difference from traditional currencies, because blockchain technology is based on it.

How it's working? If you buy or receive, for example, 1 Bitcoin, this transaction will be saved in its chain. It will contain the sender's and recipient's addresses, amount, time and transaction fee. Each subsequent transaction will also be added to the chain. And most importantly: this data can never be changed or deleted. This prevents not only counterfeiting that could involve paying the same Bitcoin in several places at the same time, but also money laundering. The origin of the funds can be reproduced, as they found out among others criminals involved in child pornography.

Each transaction is made by the owner of the cryptographic key to the funds held. Each key is unique and virtually impossible to guess. The probability of hitting is 1: 115 792 089 237 316 (and 63 zero more!). It is much easier to hit the "six", which is the main prize in Lotto, where the probability is 1: 14.

Cryptocurrencies and security

As you can see, no - even the most modern device - can crack the Bitcoin code, and you have to remember that it is out of date compared to the latest cryptocurrencies. The current security is even more sophisticated, and there is only one way to steal cryptocurrencies - to get a cryptographic key.

What is he In short, we can say that the password that can activate transactions with our cryptocurrencies. Its protection is the most important thing. And there are proven ways to do it.

Cryptocurrency wallet

One of them is a cryptocurrency wallet. It is an electronic "safe" to which you can log in via the Internet, eg from a secure network in your own home, or install it directly on your device - smartphone, tablet or computer. In the latter case, it is not connected to the Internet and cannot be accessed remotely. There are already companies specializing in the production of such wallets, which are more and more advanced and very secure.

A proven way - an ordinary notebook

The key, which is typically 12-24 words randomly generated, can also be protected completely separate from electronic devices. Some people just ... write it down on a piece of paper. Such a card (as well as its copies) should of course also be protected, although it is hard to expect that, for example, thieves plundering a flat will know what use they may have from it. With time, however, it will become common knowledge.

Metal mini-safes for documents that have been waterproof and fireproof have long been available on the market, and their manufacturers argue that they will not damage even if we throw them off a flying plane. Who and why would it do that? I don't know that, but the marketing ploy works because they sell quite well.

Cryptocurrencies on exchanges - only for trading

Cryptocurrencies - apart from transactions for the purchase and sale of items and services that are just getting started - we usually buy on cryptocurrency exchanges. In this case, our resources are held by exchanges. They also have specialized security, and most of the keys rest in the so-called cold wallets (i.e. outside the Internet). However, this is not always enough, because from time to time there are more or less spectacular thefts from stock exchanges. Some of them guarantee coverage of losses from their resources, but it happens that as a result of an attack they go bankrupt and the money disappears forever.

Check it out: Cryptocurrency exchanges - List of the most popular offers

The solution is simple: if we invest savings in cryptocurrencies and we do not have a plan to cash them quickly, or we do not want to actively speculate them, it is better to keep them off the stock exchange. You can return to it at any time and sell your tokens and altcoins on the market, but if we think that our way of securing your cryptographic key is safe, it's better to trust yourself and take care of your money's safety.

To sum up, one thing should be remembered: you need to focus on protecting the password, i.e. the cryptocurrency key, as well as protecting e.g. your credit card PIN. Thanks to this, we will definitely not be at risk and our cryptocurrencies will be safe.