Today, the increasing acceptance and wide use of bitcoin becomes more and more obvious. The number of participants rise and so does the advancement of all systems connected with cryptos. Unfortunately, hacking attacks and fraudulent activities grow, too. Since the world of cryptocurrency is associated with risks on every step you make, the owners should be as careful as possible.
How to keep your money safe?
So, what is the safest way to store your cryptocurrency? There are various ways to keep your coins secure and the most popular are:
This one is connected with using a strong password to encrypt your existing wallet
Also, you can create a backup of your wallet and save your coins even if your computer is hacked
This involves creating a so-called multi-signature that requires 2-3 people to approve the transactions, so a hacker won’t be able to steal your coins on his own
Cold storage means that you keep your coins offline, therefore independently of the internet access. Thus, any threat from hackers is reduced, since they operate online. Users have to keep some coins in a regular spending and put the rest in a cold storage. This way is especially efficient if you have a large sum of coins.
Considering the fact that bitcoins are absolutely virtual, one should keep in mind that storing them online may be dangerous. Luckily, there are offline storing options for digital money. Cold storage is a common practice not only for average users, but also for trading platforms and exchanges. These resources have to deal with huge amounts of bitcoins and therefore become a target for hackers. To minimize the risks, they prefer to keep most coins in a cold storage. Therefore, they usually keep the amount for everyday use on the server and put the rest to a cold storage. This way, even if someone tries to steal the money, he won’t get the entire sum.
The most popular methods of cold storage
USB drives can serve as storage for your bitcoins and keep your encryption keys. Users usually keep these devices in deposit boxes to save them from being stolen.
- Paper wallets
This way involves printing your private and public security keys on paper and saving them from any online interaction. A paper wallet also has a QR code you may scan every time you need to make a transaction. Obviously, paper is safe from hacker attacks, however you should take care of it and duplicate/encrypt it for safety.
- Sound wallets
This technology involves storing the encryption keys inside of the sound files in items like vinyl records and CDs. Usually, the spectroscope is used to decipher these audio files.
Hardware wallets is the safest way to keep coins offline. These devices are protected from all outside risks, including hacker attacks, viruses and water. They allow users to send and get currency safely, have QR code, camera and a backup function.
Also, there are so-cold “deep” cold storage services that provide even better protection, since they require address and personality proof. Of course, those who prefer to stay anonymous owners, rarely use this type of service despite the fact that it provides the most advanced security one can imagine.
Despite the rumors that hackers may install the backdoor in a cold storage system and reach users’ coins, this method is the safest and the best in today’s situation. Anyway, online wallets are vulnerable for hacker attacks many times more. Hackers are actively using web links snippers to get access to users’ money and the only way to avoid it is to keep your currency in a cold storage. Thus, we recommend you to pay special attention to this method, especially if you own a large amount of coins.