How to Secure your Cryptocurrency Wallet in 2019

by The 'Staunch

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Just like the way you secure your financial fiat wallet in life, that’s the same way your cryptocurrency wallets should be protected.

Surprisingly, despite how many online resources and blogs that have warned against storing bitcoin and altcoins on exchanges, a lot of people are still going against the idea.

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Realizing the situation of things in the crypto-space, i found out that many people lack proper education on how to actually secure their cryptocurrency wallet for investments. And this have also resulted in many of them fallen prey to crypto-thefts, hacks etc.

Bitcoins Safe 2

I always advice my blog community against storing cryptocurrencies on an exchange, as no exchange has ever been, and will ever be a better, or among the best secured wallets in maintaining cryptocurrency security.

However, i also noticed that most people will still get the best and most secured wallets, but they will not know how to secure their cryptocurrency wallet from the dangers that may lead them to loosing their crypto assets.

In this post, i am going to show you all the ways you can use to secure wallet of your crypto investments, because cryptocurrency trading or investment can be very profitable, but the risk of loosing what you have labored for, can be overwhelming.

So let’s get started with how to secure your crypto wallet for safe keeping your cryptocurrency investment.

1. Use any of the safest offline wallets

Making use of cryptocurrency wallets in the market to store your cryptocurrency trading investment is just one of the easiest ways to make sure that your cryptocurrency assets are safe, but that’s not the major way to secure it very well.

When choosing wallet to store your crypto asset, you should also make sure that you’re making the right choice. You should always choose a cryptocurrency wallet that allows you complete access to the private keys, PIN codes, pass-phrase and all other HD features.

  • The wallet must also have feature to back up or restore your investment when necessary.
  • The user-interface must be friendly and clean to use.
  • The wallet must have an active development and the support groups must be full of the fellow users like you.
  • It must be compatible with various operating systems.
  • The wallet must not need Internet to store your coins.

In other words, the more security feature a wallet have, the better for safe guarding your cryptocurrencies.

Now that you already know how to make choice and judge wallets for the storage of your cryptocurrencies, let me show you the most recommended wallets you should consider using right away.

Hardware Wallets:

These are the best wallets in the crypto-space to secure your cryptocurrency investment very well, without loosing it to theft or hackers.

It may be costly to get a hardware wallet, but you are really serious about securing your investments, i will strongly suggest you try to get one for yourself. Now, see the list of best hardware wallets below.

Ledger Nano S – mostly used by my blog community and other serious investors in the cryptocurrency world. It’s also a good wallet for storing Ethereum DApps, as it can store ERC20 tokens as well.

Trezor – yet another crypto hardware wallet that has HD feature. It has almost all the features just like Ledger wallets, but it’s a bit costlier for a budget compared.

Software wallets:

These are wallets for mostly the beginners, as they may not have enough capital to invest in getting a hardware wallet to secure their cryptocurrency investments.

See list of recommended software wallets you can get or download to keep your crypto-asset safe.

Exodus – this is a software wallet made only for desktop computers. Even though it’s one of the secure software wallets, i will still not advice you to use exodus wallet as it doesn’t work other operating systems, but just PCs.

Jaxx wallet – this is my favorite software wallet for storing cryptocurrencies offline. It had support for many operating systems, but lacks the feature to accept ERC20 tokens.

Coinomi – this is yet another cryptocurrency wallet i like so much, due to the fact that it has features for accepting ERC20 tokens. You can also swap your cryptocurrencies using the inbuilt Changelly and shapeshift integrated features.

Trust wallet – this is an ERC20 and ERC23 wallet from the popular Binance exchange. They recently bought and partnered with the wallet company early 2018. Though, the wallet is only made to store ethereum DApp tokens and all the cryptocurrency airdrops based on the Ethereum blockchain.

This also means that, trust wallet cannot store any of the other coins like Bitcoin, Monero, Bitcoin Cash etc as they are not part of the Ether applications.

2. Have multiple backup of your wallet private keys

In the world today, people are accustomed to backing up their important data in a place where only them will have access. But the surprising thing in the crypto-space is that despite these knowledge, many don’t always want to consider the necessity to back up their crypto wallet private keys.

Private Key

However, the major thing is not even just backing up your private keys to avoid loose of crypto-asset, but how and where you’re backing it up is what really matters.

Most people will prefer having their private keys being backed up in the cloud. This can be very safe for other kinds of private data, but definitely very risky for crypto assets.

If you must backup your seed-words in the cloud space, you should be sure to have the cloud protected with an unpredictable password.

If your wallet is HD featured, you can safely keep your passphrase seed-words in an offline safe place where only you can have access. Make sure you store it in two or four places that no other person has access or knows of.

Don’t worry about loosing your wallet or misplacing it as long as you have your wallet private keys safe kept already, but make sure you make use of passwords to lock your wallets to avoid unauthorized access to your investments.

3. Encrypt your cryptocurrency wallets

Encrypting your wallet is one of the best ways to make sure that no one transfers funds from your wallet without your knowledge. But many at times, the problem people face with this practice is that, they tend to forget the password entirely.

If you consider this practice, try to always have secured places where only you can write and keep your passwords without anyone seeing it. This will also help to protect your cryptocurrency investment from being stolen through hacking.

Also, make use of strong passwords that consist of both numbers and alphabets, even punctuation marks. This kind of password is mostly very hard to be predicted by hackers.

Don’t use or enter your passwords in a public computer because most make have viruses, malware or key-loggers already in it. Try to always use your personal gadgets to trade or transfer cryptocurrencies.

4. Use wallets that has multi-signatory protection

Most bitcoin secure wallets includes multi-signature feature that allow transactions to need multiple approvals before any part of the coin can be spent.

This type of wallet is mostly used by organizations who engage in the mutual fund industry to fully control how they spend their cryptocurrency investments online. Two or more members of the firm may need to sign the transaction before it can be successful.

This in particular will make a company to have fully authority and control of their treasury, while preventing a thief or hacker from stealing funds by compromising a device or server that has the crypto coins.

5. Be careful with using your wallet online

In the world today, there are many bots, viruses, Trojan, Key loggers etc and the crypto-space is not an exception.

As majority of the cryptocurrency investors make use of desktop, mobile and web wallets, it is a paramount necessity to always have antiviral softwares installed in the operating systems with the wallets for security.

See my suggestions to fully secure your wallet from the known attacks:

  1. Make use of anti-virus and anti-malware softwares on personal computers.
  2. Invest in strong firewalls if you have the money.
  3. Always check the URL you visit to avoid phishing attacks.
  4. Use 2 FA authentication where you can to safe guard your assets.
  5. Do not access your cryptocurrency wallet from a public WiFi to avoid being spoofed.
  6. Always keep your wallet softwares up to date.
  7. Make use of trusted wallets just like the ones listed above in this post.
  8. Don’t use brain wallets or also keep your passwords away from where the eyes of people will see it.

6. Keep the wallet software updated

Using offline wallets requires that you will always keep your eyes on the watch for new security upgrades and fixes. New security updates to wallets can save you from unknown security glitches and severity.

Most times in software wallets, these updates normally comes with new features to protect your crypto. So try to always update your security softwares in the gadgets you’re using to store your crypto investments.

7. Use Virtual Private Networks (VPN)

Make use of VPN to hide the footprints to your cryptocurrency wallets when doing any transaction or fund transfer. This will help to prevent hackers from knowing the exact address to your wallet, by tracking the IP address you used to do the transaction.

Digital Wallet Vpn

To find the best VPN service to secure your cryptocurrency transactions, i wrote a post on different strong VPN services you can start using.

Additional advice to secure crypto wallet

In order to keep up your cryptocurrency security, i will suggest you bookmark this page as reference guide to how you should secure wallet that has your crypto-coins inside.

Additionally, i will suggest you get a hardware wallet to avoid unauthorized access to your investments. One of the most recommended wallets are Ledger Nano S and Trezor.

They are the best and most secured cryptocurrency wallets in the crypto-market, but only if you can afford them anyways.

By the way, if you are just starting off, and don’t want to worry about spending much to secure your crypto asset, you can simply download any of the software wallets listed above, some of them are still very secured to an extent anyways.

In other words, Good-luck as you try to make money with cryptocurrency investment.