lockchain technology and the use of cryptocurrency has created a world in which any person or entity can transfer value on the internet directly to another party – without any intermediary.
While this means that people now have the power to manage and care for their own assets, that empowerment also places responsibility on the individual.
The question is whether or not the individual also holds the knowledge they need to make wise decisions – especially when it comes to data and asset security. How do you decide what to oversee? Are they aware of best practices for handling their sensitive data – and what the consequences of failing to protect it might be?
In our 3-piece e-mail series, CORION will share information on how to protect your money – even if you aren’t a tech-savvy nerd. This message contains some great advice on how you can become a better cryptocurrency user.
There is no compromise when it comes to security. CORION is committed to providing the safest, easiest, and most usable wallet for your mainstream gateway to the cryptoworld – and that means helping you ensure your assets are secure.
In order to protect and manage your own assets and personal data properly, you need to be aware of the importance of two things:
- Your personal habits
- Your choice of e-wallet provider
If you are a cryptocurrency user, you have at least one digital wallet accessible from your PC, tablet, or mobile – which means you are already exposed to several dangerous risks. Careless banking can lead to some pretty serious mistakes.
In order to keep your money safe, it is important to observe the following rules when it comes to using the device on which you send and receive cryptocurrency:
- DO NOT visit dangerous websites which might steal your data
- DO NOT connect to any risky wifi networks (if you don’t know the service provider – don’t use it!)
- DO NOT share your device with anyone else (not even a child or family member)
- DO NOT leave the device unattended
- DO use a PIN code, password, or fingerprint reader to secure your device
- DO maintain active virus protection
Beyond the above, you should also consider the following:
- Use at least two accounts – one for daily transactions, and another for your savings.
- Keep only smaller amounts in your daily account.
- Keep bigger amounts in your savings account.
- Use at least two devices – one for daily account(s) (which you can keep in your pocket), and another for your savings account (which is stored in a secure location).
Be wary, and remain on the alert for threats.
- If you lose any of your devices, move all funds accessible from that device to a new account, immediately.
- Transfer your money to a new account every few months.
- Before servicing your device, remember to move your money to another account (which is not accessible from that device).
- Follow the cryptocurrency news. Seek out community-approved solutions.
- React immediately! If your information is exposed in any way, or you suspect a threat of any type, move your funds to a safe location immediately. Remember – speed is crucial, delay is fatal.
To use or trade in cryptocurrency, it is necessary to maintain an account on a crypto-exchange. This exchange acts similarly to a bank, overseeing and managing transactions made on your behalf – which means the exchange will have access to any funds kept or stored in your exchange account.
Just like a bank, that means the safety of your cryptocurrency assets relies on the security of the crypto-exchange. If the exchange is hacked (robbed), your money is also stolen. But, unlike a bank – your funds are not insured. No one is promised compensation by the exchange, in case of this type of loss. Thus, it is wise to adhere to these guidelines:
- DO NOT store your cryptocurrency assets in an exchange account. It is better to transfer large amounts of funds to an exchange only when you need to make a transaction – and remove excess funds when your transaction is complete.
- DO keep as much money on exchange as you need to trade. Deciding in advance what funds you intend to trade, and holding them in your exchange account will allow you to transact quickly and easily when the time comes. The rest of your funds should be transferred to your safe wallet.
- Trade only on well-known exchanges, recommended by the community. Choose one which has a strong reputation and established history of secure transactions.
On private keys.
Think of your private key as the key to your treasure – anyone who holds this key has access to your money.
- Keep your private keys safe and secure. Do not share them with others.
- Create a secure back-up. Store a copy of your private keys on paper in a secure location (such as a safe deposit box), or save a digital copy on a detached hard drive, which is stored in a safe place.
Remember – ignoring these guidelines can have serious consequences! A failure to observe these basic rules and security practices will ease the job of hackers and thieves, and leave your funds exposed to theft or other exploitation.
But, do not fear – following these best practices will help you keep your cryptocurrency safe, and allow you to conduct transactions with speed and security.
Become your own banker (without getting hacked) part #1 – You are just reading this