The Security Essentials
It’s very important to remember that famous phrase that affirms “Every digital medium is violable”. Under this principle, no user can trust a 100% in a digital platform that can be hacked in any moment. In the cryptocurrency field happens the same because people store their actives in electronic wallets that sometimes don’t follow the best patterns of security and can be vulnerable to hacking.
Even knowing that cryptocurrencies are decentralized virtual actives, they shouldn’t give us the feeling that they are completely safe. Anyone could actually steal our cryptocurrencies. If we are not careful, we ourselves can even motivate the conditions for the theft or loss of our funds.
The recent hacking to the Electronic Wallet “Nice Hash” has brought to the center of the scene all the vulnerabilities of a store system if people don’t take certain safety measures. A simply phishing attack is enough to violate our wallet. That’s why in this opportunity, we will share with you the safest ways and the most important security considerations to choose and manage your cryptocurrency through an electronic wallet!
First, if you are not very sure about the different ways to store your cryptocurrencies, please read our article about the best tips to choose the perfect Electronic Wallet!
1. Consider the protocol of your Electronic Wallet:
If you are using an online wallet, you need to verify its protocol. If it’s HTTPS, this means that the information transferred is encrypted. As the first measure to protect the stored funds, every electronic wallet should ask their users to stablish a secure password.
This is at least, 8 numbers and letters, no consecutive that include a capital letter and a symbol. It’s also recommendable to find a wallet that integrates an authenticate service. This adds an additional security layer through SMS or apps like Google Authenticator.
2. Multi Signature:
It’s very important to count with this option because is essential to protect your wallet from steals and attacks. This implies that you will need different private passwords to transfer or spend the cryptocurrencies in your wallet.
3. Sign the transactions Offline:
If you have the possibility to count with two PC’s sharing parts of the same wallet, you can sign your transactions offline. For this purpose, one of the computers must be disconnected and have the complete wallet besides being the one able to sign the transactions.
The other computer must stay connected on the internet, having a wallet that only can create transactions without signature. In this manner, you can follow this pattern for secure transactions:
A) Create a transaction in the connected computer and save it in a USB device.
B) Sign the transaction in the disconnected computer.
C) Send the signed transaction through the connected computer.
4. Use a versatile Software:
A “Bitcoin’s Client” is an official software that you can install in your operative system. It will automatically generate an electronic wallet and will start to download your transactions history. The ideal is that you find a software that let you change of address with each operation.
You can separate your transactions in different electronic wallets, according to their importance. A practical recommendation is to keep a single wallet for the common operations with small amounts and recharge it when is necessary. Diversify your cryptocurrencies in different wallets is always a wise idea.
5. Have the control over your Cryptocurrency:
If you don’t have access to each one of the private passwords of your bitcoin wallet, then you don’t have control over them. Make sure you have them not only in your computer, but also in an offline device or a paper. In this manner, you can choose when and how transfer your currency.
6. Don’t ever forget a Backup:
You can apply this advice to any digital device and service. Besides having all your information in the cloud, make sure you also have it in another hardware like a pen-drive or even a “Cold Wallet”, specially designed to store all the passwords related with your cryptocurrencies.
Off-line wallets are also recommendable or simply having your vital information in a paper. It’s important to make constant updates, use different locations and keep all of the information encrypted.
If you lose the device where you have your wallet, and you didn’t do a backup of your passwords, you will lose all of your cryptocurrencies. In fact, people say that there are millions of bitcoins, which nobody can access or use because the wallet or the passwords are lost.
7. Verify the vulnerability:
Make sure that your electronic wallet is based in an open code. In this case, it will be easier for you to know how they assure the cryptocurrencies. You can also verify in an effective way if there is a vulnerability for that system.
8. Whatever your electronic wallet is, encrypt it!
In case you have your wallet in your own computer, you can encrypt the entire unity or just the space where you can find the files. If we encrypt our wallets, anyone who want to have access to our cryptocurrencies will need the encrypt password.
Keep your bitcoin’s client, operative system and all the products around your cryptocurrency updated. The malwares in the host can affect the electronic wallets, so you need to count with the latest security products to do massive and regular scans.
We can affirm that the most valuable advice to protect and guarantee the security of your cryptocurrency is:
- Encrypt your information.
- Make it offline.
- Prepare a backup.
We hope these advices can help you to be aware of the security in the cryptocurrencies field. Note that everyone is trying to get the most out of these new actives and is very important protecting the investments and work you may have so far. If you are a beginner, this is the perfect moment to learn about this and understand this challenging market even more!