Introducing the steps one can take to safely manage their crypto investments. With cryptocurrencies becoming increasingly mainstream, it is important for both seasoned crypto traders and newcomers to understand “how to secure your crypto assets”.

In this blog, we will outline 10 essential tips for keeping your crypto secure using methods like secure wallets, cryptography, and other best practices developed within the crypto community. Let’s start by understanding how crypto wallets work first!

How do crypto wallets work?

The first step to secure your crypto assets is using an appropriate crypto wallet. A crypto wallet serves as your personal account for managing cryptocurrency holdings and facilitating transactions on the blockchain.

At their core, crypto wallets utilize public and private key cryptography, similar to how encrypting an email works. Your public key acts as your account number that others can see, while the associated private key serves as your password that only you have access to authorize transactions.

Most wallets generate and store these keys to allow you to easily manage your funds. If you need a secure crypto wallet, make sure to check out “How to set up a cryptocurrency wallet?”. You can also benefit from Cryptobunq custody and wallet solutions.

Cryptobunq is a secure crypto service provider that offers all-in-one solutions for individuals and businesses. Apart from custody and wallet, CBQ also offers services such as crypto checkout and invoicing, batch crypto payments, crypto exchange API, and more.

If you are interested in Cryptobunq solutions and want to learn more, you can check out CBQ blogs and case studies. Now, let’s continue to explore the 10 key steps to protect your crypto assets!

Never keep digital copies of private keys or seed phrases

It is crucial that you never store a digital copy of your private keys or seed phrases, the backup list of words that allows you to restore access to your funds if something happens to your device.

Screenshotting, copying to your computer, or saving photos of these sensitive details on your phone provides an easy target for hackers or malware. Instead, store any paper backups securely offline in multiple physical locations to hedge against risk.

For additional security, consider using a crypto wallet from secure crypto service providers like Cryptobunq, which offers vault services that require multiple approvals to access funds.

Enable two-factor authentication

Furthermore, enable two-factor authentication wherever possible as an extra layer of protection. This requires providing a code from a separate authentication app each time you log in, making it much harder for hackers to access your accounts even if your password is compromised.

Crypto exchange API by Cryptobunq allows websites and applications to integrate next-generation 2FA solutions. Some top wallets even allow pairing security keys for physical two-factor protection. Implementing 2FA is one of the simplest and most effective ways to bolster your account security.

Avoid disclosing crypto holdings

Do not openly discuss specific details of your crypto portfolio sizes or holdings publicly online. Cybercriminals actively monitor social media, forums, and Reddit to profile potential targets with large amounts of crypto.

They may try social engineering attacks or even threaten physical harm if they know you own significant assets. It is usually best not to reveal anything beyond general discussions about your investing strategy or industry news.

Use a secure internet connection and VPN

When transacting with crypto, ensure you are on a trusted WiFi network or using mobile data rather than public hotspots, which hackers may monitor. A VPN obscures your online activity and IP address, preventing network spoofing.

Using a secure internet connection and VPN offers an extra layer of protection against man-in-the-middle attacks when sending or receiving funds or accessing digital wallets on an internet connection.

Always buy crypto from a reputable source

Only purchase major cryptocurrencies from regulated exchanges like Cryptobunq, which undergo proper security audits and have insurance policies. It is highly important to buy crypto from a reputable source.

Steer clear of sketchy or anonymous sources and private or direct sellers, as there have been many exit scams and incidents of buyers receiving digital currencies that suddenly become worthless due to a lack of liquidity.

Stick to top-tier centralized exchanges or decentralized platforms if you value absolute anonymity in exchange for less consumer protection. Cryptobunq is an expert that you can trust in this regard.

Avoid phishing attacks

Criminals actively run phishing attacks, trying to steal credentials or infect devices with malware. Verify URL authenticity and watch for spelling errors or suspicious domains when accessing exchanges or wallets.

Never click on links or attachments in unsolicited emails regarding crypto. Instead, always navigate to websites manually through your bookmarks. Enable anti-phishing protections through security solutions. Also, stay alert on social platforms where scammers try mimicking celebrity endorsements or giving away coins.

Back up your crypto wallet

Just like traditional wallets, crypto wallets can be damaged, lost, or stolen due to human error or physical catastrophes beyond your control.

Make sure to back up your crypto wallet addresses, private keys, and seed phrases on multiple external physical mediums like steel wallets, encrypted USBs, or printed paper stored separately for redundancy.

This way, you can restore access to funds even without the original device. Consider using vault services integrated by wallet providers like CBQ for additional security.

Use custodial services on a limited basis

While inherently less secure than self-custody, regulated custodial services remove the burden of personally managing private keys by keeping crypto assets in secure offline “cold storage.” Cryptobunq offers crypto custody solutions with robust security.

Mainstream options for institutional investors or exchanges doubling as wallets. However, avoid leaving large holdings on custodial platforms long-term due to potential regulatory or technical risks.

Do not store all of your crypto funds in a single place

Following basic security practices, it is prudent not to hold your total crypto portfolio value in any one location, be it an exchange, hot wallet, physical wallet, or custodian. Risks include exchange hacks, localized hardware failure, natural disasters, or seizures.

Consider splitting your crypto funds across multiple types of crypto wallets, custodians, and geographically dispersed cold storage solutions. Even spreading funds thinly across reputable crypto exchanges lowers outage risk while maintaining liquidity for trading needs.

Use multiple cold wallets to store your crypto funds

For long-term holding of larger sums, offline cold wallets provide military-grade protection by completely removing your crypto from internet connectivity.

To minimize losses from potential manufacturer compromises, do not concentrate all cold storage funds in a single vendor's wallet. Instead, duplicate your holdings across different wallet brands and store them discreetly. Periodically update wallets to guard against emerging vulnerabilities and firmware issues.

The bottom line

Carefully following the security practices outlined above goes a long way toward reducing risks for your crypto investmentscompared to leaving funds fully exposed online.

While absolute protection is impossible, a balanced approach to custody across exchanges, wallets, and your own self-governance fosters greater peace of mind.

For their part, regulated entities in the blockchain space are rapidly maturing safety standards through compliance, audits, and insured vault infrastructure. Staying informed on proper safety practices will pay dividends as digital currencies become more mainstream.

Over time, initiatives will further bridge crypto with the traditional financial world through transparent issuance overseen by Cryptobunq and other experts. Cryptobunq is a one-stop-shop crypto service provider that you can trust for your crypto projects. Contact us today to learn more about our solutions!