If you are new to the world of crypto, it can be easy to get under the influence of green arrows and numbers that you constantly see. They can be mesmerizing… and dangerous. Before you start trading on different platforms and moving assets between wallets, it is important to set up the necessary safety measures in order to avoid any possible mishaps. Let’s take a look at some simple steps that will relieve you of some unnecessary stress.
First of all, as you probably know, almost all cryptocurrencies are stored on the blockchain. It is one of the safest “places” to store your data in this day and age, as they are (thought to be) unhackable. All transactions are verified and all nodes in the blockchain keep verifying themselves with the help of other blockchain nodes. It is basically a giant electronic ledger, which records the time and date of your transaction(s) and makes them public for anyone to see. This might sound scary, but in all honesty, it’s probably why this technology became so widespread.
Finding a Trading Exchange
In order to help you buy and sell your cryptocurrencies you need to use the exchange. At this juncture it’s essential that you do some homework and check that they are both trustworthy and have a stellar reputation. We suggest that you look through online cryptocurrency forums, as well as checking articles around the web. A good place to start is somewhere like Reddit which has a number of subreddits all dedicated to trading cryptocurrencies.
It’s also useful if the exchange of choice supports Fiat currencies. You might be surprised as to how it will help make your life much easier by showing you a country’s restrictions or the deposit and withdrawal limits. You’ll find some exchanges like Bitmex, which will only allow deposits in Bitcoin. So check that the coin you’re using, be it stable coins or altcoins are accepted. Whilst trading cryptocurrencies on the internet, there are a myriad of possible ways that you can protect yourself from bad actors. These include such factors as enabling 2-factor authentication (2-fa). And also ensuring that your coins are stored offline using a hardware wallet.
The Different Wallet Types
Probably the most popular method of staying safe is to have a wallet that is not connected to the internet. These are known as “hardware wallets” and you can use them to store your private keys. Normally this will be encrypted with a PIN code or password, allowing only the owner of the wallet access
Another option is to make use of what are known as “paper wallets.” These are wallets that you print out from an online generator. On the paper you simply write down all the information that is relevant to your wallet, such as public address and private keys. Being a piece of paper, it has no access to the internet and you should store it in a safe place.
Utilise Different Strong Passwords
When you’re going to be storing funds, please don’t use obvious passwords. We suggest that you think of strong passwords. And then make sure you use a different password for every platform you are utilising. It’s a basic internet security optics to ensure you use a different password for your phone, your email, social media, and then your exchange account. Please don’t be that guy who uses just one password for all these things. If your email password was hacked then your cryptocurrency wallet would be exposed. You need to be thinking about how you can make life as hard as possible for a hacker. So if you have three separate strong passwords then it’s going to be that much harder for the hacker to access both your personal information and then your cryptocurrency wallet. Like we previously said, don’t be lazy.
What is Two-Factor Authentication?
Simply put, it’s an authentication that requires two different “factors” in order to function. This means that you need a password and a “something else” from a random source. These days one the most popular sources is using Google Authenticator. This app presents you with a number, along with a countdown. You will need to enter this number before the countdown ends. Now if someone has access to either your username or password, then using an authenticator app adds an extra layer of security.
A good contemporary example of its use can be found on our new metaverse platform, Next Earth. With players purchasing land assets, it’s essential that they feel safe and secure. Not only does Next Earth offer 2-fa, but we have another level of security in that all your transactions on the platform can be checked using bscscan.com. This is a blockchain explorer that allows its users to validate and verify transactions on the blockchain. We should also mention that you can get a pretty good grip on the trustworthiness of any platform by being able to speak with the owners and devs directly. The CEO of Next Earth, Gabor Retfalvi, along with the lead devs, are constantly monitoring and responding on their Discord server.
So now you have a better idea of the different types of wallets and hopefully you know how to setup different strong passwords. And you have a basic understanding about 2-fa.
Though there is some technical knowledge needed to trade and secure your coins, most problems come from either laziness or a lapse of common sense. You’ll find that a good dose of critical thinking can take you a long way in avoiding issues.
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