What are the best practices for storing onchain crypto securely?

6 answers

• Nov 23, 2021 · 3 years ago
  One of the best practices for securely storing onchain crypto is to use a hardware wallet. Hardware wallets are physical devices that store your private keys offline, making them less vulnerable to hacking. They provide an extra layer of security by keeping your private keys separate from your computer or smartphone, which are more susceptible to malware and phishing attacks. Additionally, hardware wallets often require a physical button press to confirm transactions, adding another layer of protection against unauthorized access.
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• Nov 23, 2021 · 3 years ago
  Another important practice is to use strong and unique passwords for your crypto wallets. Avoid using common or easily guessable passwords, and consider using a password manager to generate and store complex passwords securely. It's also recommended to enable two-factor authentication (2FA) whenever possible, as it adds an extra layer of security by requiring a second form of verification, such as a code sent to your mobile device.
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• Nov 23, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recommends a multi-signature wallet as a secure storage option for onchain crypto. A multi-signature wallet requires multiple private keys to authorize transactions, making it more difficult for hackers to gain access to your funds. This type of wallet is often used by exchanges and large institutional investors to enhance security.
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• Nov 23, 2021 · 3 years ago
  When storing onchain crypto, it's crucial to regularly update your wallet software and firmware. Developers frequently release security patches and updates to address vulnerabilities and improve overall security. By keeping your wallet software up to date, you can benefit from the latest security enhancements and protect your crypto assets.
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• Nov 23, 2021 · 3 years ago
  In addition to these practices, it's important to be cautious of phishing attempts and avoid clicking on suspicious links or downloading unknown software. Always double-check the website URL before entering your login credentials or making transactions. It's also advisable to store your backup seed phrase or recovery phrase in a secure location, such as a safe or a safety deposit box, to prevent loss or theft.
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• Nov 23, 2021 · 3 years ago
  Remember, the security of your onchain crypto assets is your responsibility. By following these best practices, you can significantly reduce the risk of unauthorized access and protect your investments.
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