Storing Cryptocurrency Safely
Despite the popularity of cryptocurrency, there are still a lot of things that are undetermined. One of the biggest question marks surrounding the new economic market is security. Because cryptocurrency exists solely in a digital space, there are major concerns for safety when it comes to how to actually store the digital currency safely.
To date, it’s estimated that each year since 2018 has resulted in about $1 billion in Bitcoin stolen per year. That doesn’t even account for missing or stolen currencies outside of the popular Bitcoin. So, when it comes to storing crypto, what are the safest ways to keep your currency safe? Let’s talk about your options!
Ways to Store Cryptocurrency Safely
There are ways to store your cryptocurrency that don’t involve a solely digital storage system. For example, some choose to store a portion of their crypto on what is known as a hardware wallet. These are essentially the equivalent of an external hard drive but for storing cryptocurrency and the digital transaction history that makes them official.
These options aren’t great for those who plan on trading cryptocurrency often. Likewise, hardware always brings about the threat of storage corruption and issues that can come with damaged storage devices. That’s why many opt to go with another method: software storage.
The Best Method: Software Wallets
The most popular method of cryptocurrency storage is also the best in many cases. From taking full advantage of things like infrastructure as code to enhancing security measures by encrypting all aspects of storage, software wallets are becoming increasingly secure. Here are a few perks to using a software wallet.
Access from Anywhere
Safety and access from anywhere might not sound like they actually compliment each other. Here’s the thing: software wallets use a number of security measures that keep your access points secure and safe from crypto criminals. A great example is the use of the software’s ability to operate across various operating systems. While this might sound like you’re opening yourself up to multiple points of data penetration, you’re fully backed by the protections in these operating systems and the program itself. MacOS, for example, is known for being largely virus-proof, which can help to keep any security breaches away from software wallets that utilize MacOS.
2FA and Other Protections
Believe it or not, passwords are becoming increasingly unsafe. The ways in which the password inputs and data are stored can be accessed by a keen cybercriminal. That’s why two-factor authentication is so important. 2FA is the process of needing an additional way to confirm your identity to the log-in process. That might mean an access code sent to your email or cell phone number. There’s also the Google Authenticator app that many sites use that can also work to ensure nobody is accessing your cryptocurrency who shouldn’t be. There’s also the perk of 2FA in mobile crypto access, as mobile devices can often be less safe than desktop entry points. 2FA and encryption methods in these software wallets can keep you safe, but you can always go one step further.
Additional Codified Security
If you’re using a software wallet that relies on cloud tech or codified network configuration, you can enlist the help of infrastructure as code and other security measures to be able to address issues that you have with security head-on. These methods make it easy to spot misconfigurations in your cloud-based software and immediately address any errors that could result in exploits for your crypto wallet.
Exploring your safe options to store cryptocurrency will likely lead you to the conclusion that software wallets bring the most benefits. Take time to see which ways you might want to store your coins and always remember that security matters just as much as analysis when it comes to winning the cryptocurrency game.