Protecting your cryptocurrency from hackers is pretty easy if you follow these steps.
First things First
Never promote online you own or have bought any cryptocurrency.
These type of promotions make you a target of bad actors. It is very easy for a bad actor to take a quick look at your social media profile and then send you malicious links to your Direct Messages which look safe to click on but they never are. They can also use your name and that location on your profile to get a ton of information out of you to target you, just so they can steal your cryptocurrency.
When creating any type of wallet it will prompt you with seed phrases that it will tell you to write down in case you lose your wallet so you always have a secondary means of accessing it. Never write down these phrases anywhere on a device that is connected to the internet. You should write it down on a piece of paper that you only will ever have access to. A device that is air-gapped and you only can access can work as well.
Cryptocurrency Exchanges
When you buy any amount of cryptocurrency you have to use an Exchange which means you use your US dollar and trade for a percentage of a cryptocurrency like Bitcoin. When you do this make sure you are transferring and funds you have off of that exchange after the purchase is made. There is many examples of crypto exchanges going under from going Bankrupt and the funds of users get stuck on the exchange which makes users lose all their funds on the exchange. The most recent example is FTX.
To reemphasize every-time you buy crypto move it to a wallet off the exchange.
How to transfer from the exchange to your own crypto wallet
For this Example we will be using the exchange Coinbase and transfer to a wallet called Trust Wallet in the App store using Bitcoin(BTC) as the asset.
First you go to the Trust Wallet you downloaded in the App store, Click on Receive, then BTC.
It will give you a page like this and you click copy
Next you go to the asset you want to transfer out of Coinbase and click your Primary Balance. For this Example we will use BTC
Next you click the arrow button which takes you to a page that lets you paste your address you just copied.
Now chose your amount and click send!
Hot wallet
What is a hot wallet? A hot wallet is a wallet that is easy to use and is always connected to the internet. Trust Wallet can be classified as a hot wallet. Corporate finance institute defines it by ” A hot wallet refers to a virtual currency wallet that is accessible online, and it facilitates cryptocurrency transactions between the owner and end-users. A collection of private keys stored on a program connected to the internet is used to store and send different currencies such as Bitcoin”. These wallets are popular for ease of use and transfer of funds.
Draw backs of using a hot wallet
Hot wallets should be used for a small amount of funds that you aren’t afraid to lose. It should be treated like your own personal wallet and cash. For example, would you feel comfortable having 10,000 dollars in your pocket walking down a dark alley? This is how you should feel with any large amount of Assets in your hot wallet. Since it is connected to the internet actively with your public and private keys stored online it creates a lot of risk for bad actors to take your funds. Use hot wallets at your own risk!
What is the best wallet to store your cryptocurrencies?
The best type of wallet to store your cryptocurrency is called Hardware or referred to as a cold wallet these wallets store your private keys offline so a hacker can not get access to your funds unless they physically have your cold wallet. The wallet we use which we think is one of the best products you can trust is the Trezor Wallet. PCMag refers to a cold wallet as, “A cryptocurrency wallet that cannot be compromised because it is not connected to the Internet.” A hardware wallet should be treated as your bank that no one has access to except you.
The steps I showed you to transfer to hot wallet can be used for a hardware wallet by just changing your address the public address of your hardware wallet. Make sure to never write down your seed phrases on any device that connects to internet. If you want to write down on computer or phone make sure that device is air-gapped.
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