These days, more and more of us are using digital assets for a myriad of things. Whether it’s investing to make your fortune, paying for goods and services, or saving for the future, there’s no end to what you can do with cryptocurrency.
But as you use this cryptocurrency, you have to take safety into account. The truth is that there are many pitfalls crypto users have to avoid, such as scams, wallet hacks, rug pulls, token loss, and so on. Luckily, we’ll highlight some of the steps you can take to keep yourself, your data, and your cryptocurrency safe.
Use Anonymous Crypto Wallets
Keeping your crypto wallet safe is the first step towards cryptocurrency safety as a whole, and one of the best ways to go about this is by using an anonymous crypto wallet. An anonymous crypto wallet, as the name would imply, is one that allows you to complete your cryptocurrency transactions while preserving your privacy. Using such wallets, you don’t have to reveal any personal information and can move stealthily. They’ve become much more popular, and there are several high-quality options on the market.
As crypto-writer Tony Frank explains, anonymous crypto wallets come in all forms and can be used for virtually every type of token you can imagine.
Secure Your Password And Recovery Phrase
Anyone who has used their cryptocurrency wallet will tell you that your password and recovery phrase are the most important things to keep note of. Without them, you cannot gain access to your wallet, and even your wallet provider cannot resolve the issue for you. There have been countless incidents of people losing their cryptocurrency, sometimes permanently, after losing their password or recovery phrase. As such, make sure your password is strong and one you can remember, and that your recovery phrases are written down and stored somewhere safe. By doing these, you protect your funds.
Avoid Storing Tokens On Exchanges
One of the most common phrases in the crypto world is ‘ not your keys, not your coins’. This means that any token in a wallet you do not have the keys to is not yours, and you do not have full control over it. This is why crypto users are encouraged not to keep their tokens on their exchange of choice. While they might be accessible at a glance, the private keys to the wallet are in the control of the exchange, and thus, you put yourself at risk. If your exchange account is compromised, the exchange is hacked, or your account is suspended, you lose access to your tokens. Instead, you’re advised to store your tokens on a secure wallet, whether it’s a hot wallet or a cold wallet.
Research Every Opportunity
So many crypto scam stories started out with investors buying into an opportunity that sounded too good to be true, and it was indeed. If you come across any cryptocurrency investment scheme, token, or project, make sure to do your due diligence regarding it. Simply searching the name of the project on crypto-related forums could offer you a world of information regarding its authenticity. Likewise, keeping yourself abreast of developments in the crypto space can save you from falling victim.
Conclusion
Cryptocurrency opens a whole world of opportunity, but can also have its downsides. To avoid losing your data, money, or both, follow the steps we’ve outlined in this article. From choosing the best way to store your tokens to keeping your wallet safe, to always staying on top of developments in the industry and looking out for scams, these will keep you on the right path.
