With crypto scams popping up every other week, it’s important that you know how to keep your crypto safe. Crypto is one of the most lucrative investment opportunities in the 21st century, so it’d be awful to miss the opportunity due to fearing the security risk.
There are organizations like the Coin Dispute Network that dedicate themselves to recovering lost crypto and helping people keep their coins safe. I asked the Coin Dispute Network to sit down for an interview where we could talk about all things crypto-security. They agreed and now I have a lot of valuable tips for you.
How important is it to choose the right crypto exchange?
It’s extremely important. So many people have lost all of their money due to choosing the wrong exchange. If an exchange promises you returns that seem way too good to be true, then there’s a good chance they are. There are so many returns out there that will take your money, then loan it out to someone else.
Next thing you know, the person or business they loaned it to defaults, and now your exchange can’t give you your money. Now they freeze withdrawals and you can’t sell. This is extremely common and why you have to choose an exchange that is trusted and that has been around a while.
Is there anything you can do to increase security on your exchange account?
The first thing you should do is enable 2FA or two-factor authentication. Just having that barrier there will make your account extremely hard to hack. Every time you log in or log in from a new device, you will receive a text with a code to enter. If someone is trying to hack your account, they will not be able to enter that code unless they got your phone somehow.
What is a “cold wallet” and are they safer?
A cold wallet is a crypto wallet that isn’t connected to the internet at all. They’re also known as hardware wallets. Pretty much, it’s a place on your computer where you can store your address and private keys. Since it’s not connected to the internet at all, there’s no way anyone can get them via an internet attack. They’re inconvenient if you don’t know what you’re doing, but they are by far safer.
Do you recommend any cold wallets to investors?
Ledger and Trezor are the two most trusted cold wallets out at the moment. I’m not sure that I’ve ever had to recover crypto for someone that used one of these wallets. Of course, you still have to verify that the app you’re using to interface with your cold wallet isn’t compromised in anyway. With some good due diligence, though, they’re pretty impenetrable.
Any final pieces of advice that you think people should hear when they invest in crypto?
Please use common sense. There are a lot of untrustworthy people out there and many of them come up with crazy, convoluted scams. They’re easy to fall for and they trick very smart people all of the time. If someone offers to send you back two cryptos for the one you give them, run for the hills.
Treat your crypto like any other valuable asset, and don’t give away your private keys and details. You don’t want anyone getting into your wallet except you.