Blockchain technology provides a secure platform for crypto transactions that aims to keep hackers away. However, it doesn’t always make the platform immune to cyber-attacks and hackers.

Having been in this space for quite a long time now, I can see quite clearly that crypto security is a significant challenge for any user. After all, cryptocurrencies and traditional finance are very different. The risk of accidents, loss, theft, or even forgetting/ misplacing your access information can lead to an irretrievable loss of funds.

As crypto security continues to be a growing concern, let’s look at why protecting your cryptocurrencies is necessary and how it could be achieved. Here are my thoughts.

A crypto wallet supports the digital currency of the users’ choice. It stores the private keys which enable users’ access to their crypto. As the coins are stored on the blockchain, the private key is essential to authorize transactions of those coins.

Different kinds of wallets serve according to users’ requirements regarding security, accessibility, reliability, etc. They could be physical devices, software, or even paper wallets such as:

As the technology driving cryptocurrencies, Blockchain aims to allow data to be recorded and distributed but not altered. It is the foundation for immutable ledgers or transaction records that cannot be changed, removed, or destroyed, which is why it is known as a distributed public ledger.

Due to the complexity of the back-end processes for crypto transactions, it is not easy for hackers to compromise their security. However, there’s no such thing as perfect immutability, and blockchain can be modified like any other technology. Though these aspects may offer protection, they’re not enough to secure a crypto wallet- where users’ coins are stored.

As the crypto markets continue to garner popularity, the exchanges and other entities dealing with them attract a lot of malicious attention. As hackers keep evolving, cyber-attacks continue to become more sophisticated.

Some risks that the crypto world faces are:

They don’t apply additional levels of protection like 2-factor authentication, use simple passwords, public Wi-Fi for transactions, and don’t run antivirus software updates.

It is a set of requirements for information systems that use cryptocurrencies. These include crypto exchanges, web, and mobile applications. CCSS has 10 step security in three levels: generation of key/seed, creation of wallet, key storage, key usage, key compromise policy, key holder grant/revoke policies, third-party audits, data sanitization policy, and proof of reserve, and log audits.

It assists users in making informed decisions when allying with organizations and is the standard for security for any entities that handle crypto wallets.

There are a host of threats surrounding your crypto investments. Some of the crypto security basics I’d highly recommend you use, to safeguard their crypto investments, are:

i) 2-Factor Authentication: On enabling this feature, an extra layer of protection is added to the already present password, for example, if the user can prove access to their smartphone. Every exchange/wallet offers this feature for additional security.

ii) New Email Address: On creating a new account, users must link a valid email account to it. The best option is to create a new account with a strong password and never share it or use it for another service to keep it from falling into the wrong hands.

iii) Strong Password: Strong passwords consist of a unique combination of numbers, letters, and special characters. And, this combination should not be applied to any other service to ensure that it cannot be misused.

While cryptocurrencies are all the rage and produce a high return rate, they are equally vulnerable to security breaches. Thus, it is necessary to be aware of the crypto security basics to ensure the protection of crypto investments.