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How to Keep Your Crypto Wallet Safe and Secure?

A crypto wallet mostly works in the same way as a traditional wallet does – it is designed to keep your money safe and always needs to be kept safe and secure for this to happen.

3 min

Table of Contents

How to protect your crypto wallet?

Guarda team has some recommendations aimed to protect your funds stored in a cryptocurrency wallet. Choose online services carefully. There are many different online services designed to store and manage your digital assets, but a lot of them do not have the necessary level of security. A huge number of cryptocurrency owners lost their funds, as they trusted in unreliable services. Safe bitcoin storage

  • When you choose an online wallet, be sure that it is fully decentralized and has a good reputation in the crypto community. Service providers shouldn’t have access to your private keys, backup file, and seed phrase. You must be sure that third parties are not able to get your private data. All the data should be stored only by you, not on the servers of the wallet provider.
  • So-called non-custodial wallets are safer than a custodial. Custody-free wallets exclude the possibility of your data leaking or being stolen as a result of a hack. You don’t need an intermediary when you store and manage your crypto, a non-custodial wallet gives you the opportunity to be anonymized, and store your funds in a secure way.
  • Save your private keys and the backup file on several flash-drives, also write it on paper and store in a safe place inaccessible to the other people.
  • To keep large amounts, use hardware wallets, such as Ledger Nano S, which is easily integrated with Guarda Wallet without the risk of the disclosure of your personal data.

Keep a backup safe

One of the most important things to do if you use cryptocurrency is to ensure you have a backup of your wallet in a safe place. This will help you to protect yourself against any mistakes or computer errors that may occur. Backup wallets will also need to be called on if, for example, a user’s computer or mobile phone is stolen. Making regular backups is vital too, as there will be changes over time (such as new crypto addresses). The updates will need to be repeated until changes come into play. The wallet, in its turn, will only have to be backed up once.

Encryption

Ledger nano s Encryption has become an essential part of our lives from WhatsApp messages to personal data and online transactions at mFortune Bingo. Therefore, it’s no surprise that it has become an important weapon in the arsenal of crypto users wishing to protect themselves against thieves. It’s possible to encrypt a crypto wallet, as well as the device it’s being accessed from, such as a smartphone, which should help to keep most thieves out. However, it’s important to use a strong password, but at the same time, it mustn’t be one that is ever going to be forgotten. If there is a need to keep a copy of an encryption password, we would recommend using a reputable password manager app.

Offline storage

We already mentioned keeping only small amounts in a crypto wallet for daily use and storing the rest of your funds elsewhere. Well, the perfect place to store it is, of course, an offline wallet. Offline wallets, also known as “cold” storages, have the highest levels of security available which makes them ideal for long-term savings. As an offline wallet isn’t connected to a network, it is the most secure wallet type around, especially if backups and encryption are also applied.

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