The year is 2020, and the way that we look at money has changed immensely.
The shift to digital money started with the advent of services like PayPal, Payoneer, and other peer-to-peer platforms. Things were going in this line before the mass adoption of cryptocurrencies as an alternative form of unregulated money.
Today, there are different reasons why people hold cryptocurrency of any kind. No matter why you have some, though, you should always take measures to ensure your holdings are safe.
Reasons for Holding Cryptos
Some of the many reasons why users have flocked to cryptocurrencies include, but are not limited to:
Safe Haven Status
Sometimes, cryptocurrencies perform better than physical money. This is true for those that have a rather weak currency or are in a place of political unrest in their countries. Like every other form of currency, though, care should be taken to ensure the fundamentals are understood so that the haven does not backfire at the end of the day.
With various exchanges and trading platforms now supporting cryptocurrencies, it is little wonder why users will prefer to hold this digital currency for trading purposes. Of course, this requires a great level of technical knowledge and understanding of the market to have a chance to make a profit or even break even.
That is why trading is best left to pros in the market.
We have also come across some users who prefer to save their money in cryptocurrency. This is the case with Eric Savics who was saving for his home in bitcoin before hackers got a hold of his money. While that can be prevented, it takes nothing away from the fact that these coins are chosen as a preferred mode of stashing away some money.
Staying Protected with your Coins
Once you start using cryptocurrencies, one thing that quickly comes to mind is the decentralized nature of the whole thing. Here, you don’t have to grant power to any bank before your transactions are processed. Likewise, you can stay anonymous on the network and move with the greatest stealth.
However, that could also come back to bite users in the behind. After all, tracking stolen coins is almost an exercise in futility. Here are some ways to ensure you never fall victim to crypto theft.
1 Choose Secure Wallets
Wallers are where you store your cryptocurrencies.
For the first part, you have to choose wallets that are compatible with the kind of coins you would like to hold. Afterward, determine if you would be using hardware or software wallets. The number of coins you want to hold at any time should also play into this decision.
Finally, make sure you are choosing the right wallet. Hackers are fond of spamming extension stores and app stores with fake wallets designed to look like the real thing
2 Secure your Network
Your internet network could also be the weak link into your device, internet traffic, and data. Combined, sophisticated hackers can use that data to access your coins remotely.
For one, abhor public and free WIFI networks anywhere you see them. Likewise, consider downloading a VPN app to boost your network security profile even better. As a plus, you can install antivirus software on the network to keep malware at bay before they make it onto your computers at all.
3 Fortify the Wallet
Passwords are the first point of call to fortifying a wallet. Never choose weak and easy to guess passwords. It is considered best practice to use online password generators to come up with a safe and secure password.
Enable two-factor authentication for wallets that support such too. Follow up with saving your [private keys in a secure, offline place. Never keep such sensitive details online where they could easily be reached in the case of a data breach.
With the above, you are guaranteed a better security profile when holding cryptocurrencies of any kind.