If you are new to crypto then one of the most important things that you should be focused on is the security of your wallet. This is the hardware or software wallet where all of your crypto will be held. Experts in the crypto space such as Robert Testagrossa have been very vocal about this lately, especially when offering advice to first time investors. There are many wallets to choose from and each will offer its own set of benefits. These may be attractive but these are the reasons why you should place security as one of your top priorities when finding a wallet.
Some wallets are much safer than others when it comes to the security protocols which they have in place against hackers. If you are in any doubt as to what this looks like, you only have to look back through history to see what each wallet has done with regards to previous hacks. If you are looking at ‘X’ wallet as an option, simply type ‘X hack’ into the search engine and you’ll find plenty of information out there about any hacks which have happened in the past, and what their reaction has been.
When using a basic website you can probably get away with simply having a good password in place, because there is likely to be a low risk of people trying to get in there. When it comes to your crypto holdings however this simply won’t do the trick and you need to ensure that you have 2 or 3 factor authentication. This will involve your email address and password, then your Google authenticator number – exclusive to you – and then also something which proves that you are human, as bots are often used.
Additional Security Details
Additional security details which you should be looking at are things like daily limits when there is new behavior on the account. This could be that once a new email address is added, trading options are suspended for 3 days, or withdrawal limits are greatly reduced for a short time. This may be something of a pain for you if you are updating your details, but you will be thankful for the increased security which you have.
And finally one of the reasons why we have seen so much talk around wallet security is that you could very well get locked out of your account. We have seen people lose login details and have devices stolen which have them on. This is exactly why you should always ensure that you have your reset keys for both Google authenticator and for your wallet, stored on paper elsewhere in the property. In doing this you will always be able to login to your account even if you have been locked out.
These are just some of the reasons why this security is so important, and the risks that do exist amongst crypto holders.