The rise of Bitcoin and other cryptocurrencies has attracted thousands of new users and investors, many of which are still at significant risk of losing their precious tokens to simple mistakes or hackers.
By taking three small precautionary steps, you can help keep yourself safe from mishandling and losing all your tokens, as well as assembling a line of defence from hackers all over the world.
1. Minimize the opportunity for human error
Ironically, the biggest threat to your precious tokens could be yourself.
You’ve heard comically tragic horror stories such as some guy accidently throwing out his hard-drive with over a thousand Bitcoins (worth over $10 million today).
The threat of human error is very real, and it could happen to anyone. It doesn’t matter if you’re new to the crypto game or a seasoned vet, all it takes is one small slip-up and your tokens are as good as gone.
If you don’t protect yourself from, well, yourself, you could end up doing some substantial damage.
Tip #1: When sending and receiving crypto, always copy and paste the address rather than typing it out manually. There’s nothing worse than blasting off your tokens into the abyss just because you thought the number “0” was an uppercase “O”. Be sure to reread and confirm to guarantee the accuracy.
Tip #2: NEVER share your private key with other parties. Once it’s out there, your wallet is instantly exposed to risk.
Tip #3: Don’t send your coins to the wrong crypto choice on exchanges. A minor slipup such as sending your Bitcoin to an Ethereum address could result in lost Bitcoin. Be sure to always double check.
2. Minimize the threat of external stupidity
So, take the possibility of human error and multiply it by the amount of people who have actual control over your money.
As we’ve seen with the simple security loophole that allowed for roughly $50 million to be hacked from the DAO to more recently the over $280 million Ether locked in the Parity wallet due to a single user changing some code, external stupidity is a massive threat.
In all fairness, cryptocurrency security on a massive scale is by no means a walk in the park. Good people are working diligently to build platforms and services…
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