From theft to scams and malicious hackers, the world of cryptocurrencies is a risky one.
As the price of Bitcoin has surged to the $50000 mark recently the risk associated with cryptocurrency theft has also increased. In the past, criminals would rob banks and blow up vaults to gain access to the money stored within.
Nowadays, crypto hackers and scammers have found other less risky ways to strike it rich. In the article, we will discuss the best ways to safeguard crypto assets securely.
The Quadrigacx scandal resulted in a total of $215 million in assets missing and unaccounted for.
The widow of deceased Quadrigacx founder Gerald Cotten claimed that she had no access to any of the Bitcoin accounts – a situation that left 76,000 clients out in the cold.
In another case, an anonymous Reddit user claimed that the entirety of his life savings which were stored in Ethereum was stolen after his e-wallet was hacked.
Both of these situations illustrate the risk associated with cryptocurrencies. The unregulated nature of the industry means that victims are often left with no legal recourse in the event that theft occurs.
Even if the authorities chose to take action, tracking down the perpetrators of the crime is nearly
Hence, to protect yourself from falling victim to such a crime, the best course of action is to safeguard your e-wallet at all times.
Top ways to safeguard crypto assets securely.
1. Only work with trusted service providers
E-wallets are a big business and there are dozens of startups looking to get in on the action.
This and the lack of governmental oversight presents can result in the occurrence of moral hazard.
For example, an unscrupulous e-wallet provider may take advantage of the situation by absconding with their customer’s cryptocurrency or misuse their position in some manner.
As most e-wallets tend to be startups, these firms tend to employ less than satisfactory security
measures. Consequently, this can make it exceedingly easy for a hacker to gain access to your
Thus, if you’re in the market for an e-wallet, it’s always best to work with professional, well-established companies. These organizations tend to have stricter security procedures and are less susceptible to moral hazard.
2. Consider switching to a cold wallet
Crypto wallets come in two variants – hot or cold. Hot wallets are e-wallets that store your
cryptocurrency online thus making them easily accessible. While convenient, hot wallets can be
susceptible to intrusion from malicious third parties.
Next, we have cold wallets that come in the form of a physical hard disk or thumb drive. Whilst significantly less portable cold wallets do not need to be connected to the internet. They can be disconnected and stored in a safe location.
This gives cold wallets a significant advantage over their web-based counterparts. It should be
noted however that these wallets can still be lost or stolen thus making it impossible to recover
one’s stored cryptocurrencies.
3. Store your crypto across multiple cryptocurrency wallets
As the old saying goes, don’t keep all of your eggs in a single basket. One of the best ways to safeguard crypto assets securely is to store them across multiple wallets or networks
Just as you would diversify your investments, it’s always better to spread out your cryptocurrency savings across multiple points.
Always Safeguard crypto assets in both cold and hot wallets while making use of several (well-known)
e-wallet providers. Whilst inconvenient, this significantly minimizes your risk exposure and
ensures that you won’t lose everything in a single fell swoop.
Also, try to use an encrypted message app for your chats and crypto trades, like Tezro Crypto App. It’s safe, it’s easy to download and it will save you future trouble.
4. Only operate on trusted networks – Ways to safeguard crypto assets
Public Wi-Fi networks are a favored hunting ground for hackers and identity thieves. More often
Then not, public Wi-Fi networks have little-to-no security procedures in place and can be easily
So operating on a trusted network is one of the ways to safeguard your crypto assets securely which kind of neglects the hacking threat.
When you use a public wi-fi network, hackers will be able to view and access sensitive
information on your computer or smart device. Information such as banking details and crypto
transactions can be stolen and used against you.
As a rule of thumb, avoid making use of free Wi-Fi wherever you may be. Stick to using your own
Data and never perform financial transactions on a public network.
Data and internet security should always be at the forefront of anything you do. By practicing
good security hygiene and being proactive, you can better protect yourself from falling victim to
theft and hacking attacks.
5. Stocking up on Bitcoin to prevent inflation
Nationwide lockdowns and quarantines have caused countless numbers of businesses to shut their doors and lay off employees.
As the world faces a financial crisis unlike any other, governments everywhere have turned to massive cash injections in order to stave off a crisis.
Consequently, cash is being printed at an unprecedented rate and pumped into the economy in order to prevent a total meltdown. Even with such initiatives, the impact of a massive global recession will be severe.
As it stands, it is likely that we will be facing the worst financial crisis since the Great Depression. With a massive surplus of cash in circulation, investors have begun turning to alternative investments as a means of hedging their cash holdings.
In the long-term, cash begins to lose its value as inflation sets in. This causes a reduction in purchasing power i.e. more cash is required to purchase an asset of similar value.
Cryptocurrencies like Bitcoin are specially designed to be inflation-proof. The limited supply of Bitcoin on the market and events such as halving ensures that its value remains consistent, unlike fiat currency.
Invest accross multiple crypto assets either it’s Bitcoin or other cryptocurrencies during this time of uncertainty.
Conclusion – Final Thoughts on ways to safeguard crypto assets securely
Liquidity refers to the ease in which an asset or security can be converted into readily available cash.
During times of great uncertainty, liquid assets allow an investor to quickly capitalize on any new market opportunities as they can be easily sold and turned into cash.
This flexibility makes it especially Useful given a large amount of uncertainty in the crypto market.
An investor can quickly enter or exit the market with ease which makes risk management
It is clear that the world is heading in a new direction in terms of economic development and the
adoption of crypto.
With their myriad of uses, Bitcoins and other cryptocurrencies are a game-changer but need to be protected and kept in a safe place, otherwise, you risk your assets being stolen or losing value.