Crypto Security

Crypto Security

When you are your own bank, you must provide your own security.

In this article, I will share the best security measures to follow for storing crypto.

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Crypto Secruity

When you are your own bank, you must provide your own security.

In this article, I will share the best security measures to follow for storing crypto.

Having full control over our assets comes with ultimate perks but comes with many risks that we can’t ignore. There are thieves in all walks of life. They want what you have, but the only way they will have it is by taking it from you! Let’s prevent any such mishappenings.

Firstly, I shouldn’t have to tell you this, but NEVER store your Crypto on a Centralised Exchange (CEX). It’s just as bad or even worse than having your assets in a bank. You haven’t got any control within a CEX. They can freeze and obtain your CEX assets in a flash…

Devices

Next, let’s cover which Devices we recommend using when you explore the world of decentralised finance (DeFi).

Always use a computer or laptop. Only use your personal desktop. Never use a public desktop. There could be malware ready to snatch your seed phrase.

Talking about seed phrases, how do you store them?

Seed Phrase

A seed phrase is the KEY to your entire wallet. The seed phrase is the MOST important aspect of #Crypto security. Every single #DeFi wallet provides its users with an exclusive set of 12-24 words, known as a seed phrase.

Where and how you store your seed phrase will determine how good your crypto security is. Depending on your net worth, you may not have to follow every single security measure. There are many advanced methods, but like Bruce Lee said “Simplicity is the key to brilliance”.

I personally follow the strictest security measures. Here are my recommended essential and advanced seed phrase procedures, there will be a reason for every security method:

Essential:

• NEVER store your seed phrase on a digital device. Many people make the error of writing down their seed phrase on a note, document, email or even password manager. Everything online and accessible via the internet can be compromised by a hacker.
• Store your seed phrase offline. Your seed phrase is best kept on a piece of paper or a steel sheet and kept in a well-hidden spot.
• Divide your seed phrase into multiple parts, e.g. 4 words on different paper/steel sheets and hide them in different locations.
• Use a hardware wallet! Hardware wallets like #Ledger & #Trezor store crypto offline, in cold storage. Your hardware wallet will also store your seed phrase offline with specialised firmware that prevents any external access.
• Memorise your seed phrase.
• Never put all your eggs in one basket. That is a saying that has always stuck with me. You should have as many wallets as possible. Divide up your assets. If one wallet gets drained, it might suck but at least you haven’t lost everything!

Advanced:

• Use a Multisignature (multisig) Wallet. Multisig wallets offer extremely powerful security as they require 2 or more seed phrases/private keys to sign off any transaction! To access the wallet or to use it in any way, requires the action of every user/private key that is associated.
• Store your seed phrase in a fireproof vault/safe. If someone were to break in, a high-security safe can prevent the burglar from taking your seed phrase!
• Bury your seed phrase. It might sound crazy, but who would ever find it? Don’t forget to protect it before burying it!
• Safety deposit boxes. Many banks have safe deposit boxes where you can put almost anything in them, obviously a paper with your seed phrase is acceptable. They are fully guarded, however out of your own hands.
• Have multiple homes? Divide your seed phrase onto separate steel sheets and plant them in safes/vaults across a variety of your homes.

Conclusion

Going back to devices, it’s always recommended that you never store large amounts of Crypto on a mobile device, unless of course it’s got an in-built hardware wallet, like the new #Solana Mobile! If you do use a Mobile Wallet, it should only be used as a burner wallet.

Having a burner wallet is crucial. As I mentioned, you should have multiple wallets to safely store your valued assets. However, a burner wallet has the primary use of buying high-risk assets and interacting with risky smart contracts. Most people use them to buy memecoins.

That’s it! Thanks for reading! Have a look at our Guides section for more!

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