In this lecture, we will talk about secure storage of cryptocurrencies and mnemonics.
Today, the security of cryptocurrency is a topical issue for many investors. The reason for this is the active interest in the new type of electronic money of hundreds of thousands of Internet users, including hackers.
Soon after the widespread coverage in online publications and blogs of bitcoin and other cryptocurrencies, a large amount of news appeared, such as the following: “hackers stole bitcoins”, “bitcoin owner lost access to a cryptocurrency wallet for millions of dollars”
We have compiled a list of the most reliable ways to protect your cryptocurrency.
Even the most secure cryptocurrency will be easily stolen by hackers if its owner ignores minimal security measures.
1. Do not store data in the public domain. After all, if the file with the key is just on your disk or on the flash drive of your mobile device, the risk of losing assets increases. In the event of a virus infection or hacking into your computer, the wallet actually ends up in the hands of an attacker.
Store keys encrypted using specialized key and password storage programs, or encrypt the entire device.
2. Do not use the same passwords, especially when it comes to crypto exchanges or online wallets.
Since we are talking about valuables, it is better to use separate passwords for these services, because otherwise, if your account on a forum or social network is hacked, attackers will get to your money.
3. Protect mobile devices from which you use financial services.
This applies to both traditional banking and virtual wallets, which are now available for both Android and iOS. Your device may end up being stolen. Therefore, set up password protection, and do not use face unlock or geolocation — on many smartphones, they can be bypassed, for example, by showing the user’s photo.
It’s best to set your phone to self-destruct after, say, 10 failed unlock attempts. Your data copied to the cloud will not be affected, and an attacker will not be able to find the password by simple guessing.
4. Do not be fooled by «tempting» offers on social networks and Telegram, because if the wallet is well protected, thieves begin to actively manipulate the victim with social engineering methods.
5. Keep track of your phone number if it’s used for two-factor authentication.
We recommend that you do not call or use your SIM card, which receives verification codes.
6. Check the legitimacy of sites when working with virtual assets. Fraudsters like to create clones of popular exchanges or online services for working with virtual wallets.
With proper handling and compliance with the basic rules for working with virtual assets, each user can receive a sufficient level of security. The protection of crypto assets can guarantee no less, and sometimes even greater safety than funds in banks, since the level of security of digital assets depends only on you.
Mnemonics
A mnemonic phrase is a group of words, often 12 or more, generated when a new cryptocurrency wallet is created. Most people write down their phrases on a piece of paper and then keep it in a safe place.
It is impossible to restore the mnemonic in case of its loss!
If you have lost the mnemonic from the wallet, you have lost all your funds.
The safest way to store mnemonics is on paper (write the mnemonics on a piece of paper and hide it somewhere inaccessible to others)
Do not store mnemonics in a document on your computer, in your dialogs, notes, drafts and virtual disks — this is not safe
With the help of mnemonics, you get full access to your wallet, but if someone else learns this set of words, then he will have exactly the same access and can steal all your funds without any difficulties at all.
Therefore, you should treat the storage of a mnemonic phrase from your wallet with maximum responsibility and caution.