Investing in unregulated crypto assets also take a big risk. It is known that many people in the world suffer because of this. At the slightest carelessness, you can lose all your money. So what should investors do to avoid this situation? Here are some very critical advice from experts.
Cold and Hot Wallets
Experts stated that there are four methods for storing cryptocurrencies, and these methods are cold wallets, hot wallets, hardware wallets and institutions that provide custody services for crypto assets.
Stating that cold wallets are created on a computer or smartphone without an internet connection and can be considered as the most reliable storage method for long-term investments. Hot wallets, on the other hand, work on mobile wallet applications or browser add-ons that use internet connection. The advantage is with the private key you create. It allows you to store your crypto assets under your control and allows you to trade whenever you want. As hot wallets are open to the internet world, it is important for users to be alert to fraudulent connections.
Hardware Wallets
The third method, hardware wallets, are tools without an internet connection like cold wallets, and keep assets safe with cryptographically secure chips, Göğüş said, “Finally, crypto money exchanges or crypto money banks that provide custody services for crypto assets store your crypto assets in their own wallets on your behalf. , but there is always a risk that your cryptocurrencies will be stolen in a possible cyber attack. said.
The most important point in wallet management is to ensure the security of private keys. You can imagine your private key as the pin code of your bank card. This information is private only to you and should not be shared with anyone. Unlike the banking system, these keys do not have the option to remind you. I recommend keeping it safe and not sharing it with anyone. made a statement.
Even Your Smartphone is Important
It is also necessary to be sure of the security of the crypto money exchange password, personal crypto wallets and even the smartphone with wallet applications. These applications and wallets should be managed with at least two-factor password verification methods, experts says, “You can safely store your crypto assets in your personal mobile wallet, even in offline cold wallets if possible.
Cryptocurrency should not be left in the spot wallets of crypto money exchanges, an expert continues. In short, make sure to move your money to your personal wallet after making a transaction. Because you can lose your cryptocurrency in a possible hacking or fraud event. Here we strongly recommend using cold wallets such as hot wallets or an offline USB as a separate application on your mobile phones.
Mobile wallet applications are like your personal safe, no one can access your wallet unless you tell the password or get hacked with various phishing, in any case, there is a possibility of cyber attack on the servers where this information is kept in hot wallets, and therefore there is a risk. As there is no internet access in cold wallets, it is not possible for others to access the crypto assets you store. Finally, if you hold money on exchanges, you won’t know if that exchange is actually giving you the cryptocurrency you intend to buy. But if you use a wallet, this will be understood during the transfer.
What is Digital Wallet Technology
Digital wallets can be thought of as personal vaults where digital assets are stored. Cryptocurrency wallets do not store money. While cryptocurrencies do not exist in a place like physical money, they are kept in the corresponding blockchain protocol. On the other hand, the public and private keys are kept in the wallets, not the crypto money itself. When people transfer or spend money, they prove that they are the owner of the crypto money in the relevant protocol, thanks to their private keys, and only then can they save.
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