Due to the decentralized nature of virtual currency transactions, security risks in the virtual currency field are relatively common. To keep your virtual currency safe, consider the following tips:
1. Use a hardware wallet: A hardware wallet is a physical device specifically designed to store virtual currencies. Security can be ensured through the isolation and encryption of private keys. The hardware wallet operates offline and does not leak data even when connected to a compromised computer. The well-known hardware wallets currently on the market include Ledger and Trezor.
2. Choose a trustworthy exchange: If you need to exchange virtual currency for legal currency, or need to trade virtual currency, it is very important to choose a trustworthy exchange. Choose a reputable, well-regulated exchange, maintain risk monitoring of the exchange, and move assets out of the exchange in a timely manner.
3. Back up the private key: The private key is the core of the virtual currency. Once lost, the virtual currency cannot be retrieved. Therefore, it's a good idea to back up your private keys on multiple devices and store them in a safe place.
4. Use two-factor authentication: Using the two-factor authentication feature can further improve the security of your account. Through software such as Google Authenticator, you can enable two-step verification after verifying the username and password, making the account more difficult to attack.
In short, the security of virtual currency storage is very important. Please be sure to take effective measures to protect the safety of your assets.
In fact, there is no absolute safety, only relative safety! Of course, if you invest in digital currencies, I think how to store digital currencies is a common sense question.
We often hear this statement: Digital currency is a cash machine for hackers!
In fact, I quite agree with this sentence, because incidents of coin theft occur relatively frequently in the currency circle. The most recent theft incident was that 150 million US dollars was stolen from the kucoin exchange! In fact, KUCOIN Exchange is also an old exchange, but it is not immune. Therefore, for ordinary participants, we must clearly know some common sense about storing digital currencies.
exchange
The exchange is the place where we trade, so most people will trade their coins on the exchange. Some people have never even withdrawn money from the time they entered the currency circle to the time they left the currency circle. Therefore, for these people, my suggestion is to try to trade on mainstream exchanges. At present, the first-line exchanges that are commonly used by domestic users are: OKEX, Huobi, Binance, etc. These exchanges have sufficient capital reserves and security measures. Even if there is a theft, you can generally get full compensation! So for small exchanges, once the theft occurs, they may choose to refuse compensation or even close their doors directly. Therefore, for the safety of funds, try not to trade your large funds on small exchanges. Some small exchanges may have For some coins that you are optimistic about, try to withdraw the coins directly after buying them and deposit them into your wallet!
hot wallet
The security level of this will be higher than that of the exchange, because at least the private key is in your own hands. As long as your private key is not lost, your coins will be relatively safe. Currently the more commonly used ones are: imtoken, metamask, etc. Of course, this is for reference only! For hot wallets, what you have to do is to keep your private key. Never send your private key by mail or social software. Otherwise, it can be easily stolen. The better way is to write it down on paper and then keep it. In a safe, or somewhere safer. I still want to remind everyone that with the recent rise of decentralized exchanges such as UNISWAP, many people will use wallet transactions. However, there is a potential risk here that in order to improve the user experience, the system will directly authorize password-free transactions. Therefore, it is recommended to establish multiple wallet accounts, that is, multiple ETH addresses to deposit coins, so that risks can be avoided to a certain extent!
cold wallet
This security level is the highest and should be bank-level secure storage. What I want to say here is that if you don’t mind the trouble, try to store your coins in a cold wallet! Currently, the more commonly used cold wallets, such as ledger, are still very safe. Of course, the most important thing here is to keep your private key. As long as your private key is not lost, your coins will not be lost.
As I said at the beginning, there is no absolute safety, only relative safety! The above are just the basic safety common sense that I think we need to know, but the most important thing is good habits! For example, if you don’t browse some unfamiliar websites, click on unfamiliar links randomly, and stay vigilant at all times, then it will be difficult for hackers to attack you!
The above are just simple personal opinions. If it is helpful to you, please like and forward it. Thank you for your support! If you want more in-depth communication, you can follow me!
Don't put it on the exchange, don't use the wallet, and lock the key in the safe. No one can take it away. Because your coins are stored on the blockchain, there is no need to store them in a wallet. The purpose of the wallet is just to help you transfer coins (you don’t need a wallet to check your balance)
On October 16, 2020, OKEX, one of the three leading domestic Bitcoin trading platforms, issued an announcement that it would suspend currency withdrawals. The reason is very simple. Xu Mingxing, who holds the private key to withdraw coins from the platform, has lost contact because he cooperated with the investigation of the public security agency. So far, 21 days have passed.
To be fair, OKEX’s announcement of a ban on currency withdrawals has indeed given great fear to the digital currency trading market to a certain extent. Because since September 4, 2017, with the return of the three leading platforms of Huobi, Binance, and OKEX, normal trading has returned to what it was before. But suddenly, with the news of OKEX, the panic in the market began to involve the other two trading platforms, and even the digital currency wallet was involved when the panic was the most in the past two days.
As an individual who has been exposed to Bitcoin since 2016 and has continued to trade and learn from experience, the safest thing is not the leading trading platforms we think, or the electronic wallets developed by these platforms, but cold wallets. The greatest security of a cold wallet is that it does not touch the network, and it is physical like a network shield similar to a USB flash drive.
You usually need to remember your own address and the private key you extracted. When there is a transaction that needs to be transferred out or in, just transfer it to your trading platform wallet online. But one thing is clear. You must know that the time period of the birth of Bitcoin has exceeded 10 years. In the past 10 years, more than 5 million Bitcoins have disappeared into the history of time, that is to say, they have been completely lost.
Therefore, if you use the safest cold wallet method, you must keep your cold wallet. If it is an electronic wallet, choose an electronic wallet with greater credibility and remember your private key address and mnemonic phrase. Just use your own wallet.
In the digital asset trading market, security issues have always been a top priority. From the bankruptcy of Mt. Gox to the large-scale hack of Coincheck, the security issue of digital currency exchanges has always been the focus of the community. So, for digital asset holders, where is the safest place to put your coins?
exchange
Cryptocurrency exchanges are one of the most common storage methods for digital asset holders. However, exchanges are also one of the most vulnerable places to hackers. In the past few years, many exchanges have gone bankrupt or suffered heavy asset losses due to hacker attacks. Therefore, storing digital assets on an exchange is not the safest option.
cold wallet
Unlike a hot wallet, a cold wallet is a storage device that is not connected to the Internet. This storage method is more secure because hackers cannot attack it through the Internet. Therefore, storing digital assets in cold wallets is a good option. However, cold wallets also have disadvantages, such as being inconvenient to use and requiring manual backup and safekeeping.
hardware wallet
A hardware wallet is a physical device used to store digital assets. They often employ cryptography techniques to protect the security of digital assets. Similar to cold wallets, hardware wallets are also devices that are not connected to the Internet, so they are more secure. However, hardware wallets are more expensive and not everyone can afford them.
Summarize
To sum up, digital asset holders can store digital assets in exchanges, cold wallets or hardware wallets. However, considering security and convenience, we recommend that digital asset holders store digital assets in cold wallets or hardware wallets. Both methods are highly secure and users have full control over their assets.
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