Blog: Secure storage of cryptocurrencies
Safekeeping of cryptocurrencies is very simple at best, and the security of your own cryptocurrencies can be increased by quite simple means. This guide reviews things to keep in mind when storing cryptocurrencies.
Account security
A good password is an essential part of the security of all services, and so is it with cryptocurrencies trading platforms like Northcrypto. A good password is long and consists of uppercase and lowercase letters, numbers, and special characters. The password should also be one that is not used in other services. Managing and creating multiple passwords is made easier with password management software provided by trusted and reputable players. On the other hand, saving a password in a web browser, for example, is not recommended. It is also important to remember that the password should not be shared with anyone, as not even the authorities will ask for people’s passwords.
Another important part of signing up for a service like Northcrypto is the user’s email. If a party has access to a user's email account linked to a Northcrypto account and also knows the user's birthday, that party may request a new password and access the user's Northcrypto account. So taking care of the security of your e-mail and, for example, a good password is also very important.
The security of your Northcrypto account can also be enhanced with the recently added two-factor authentication (2FA), which provides additional security to verify the identity of the person logging in to the account. When two-factor authentication is turned on, in addition to your password, you'll need to verify your sign-in with a one-time code available, for example, in the Google Authenticator app. In Nortcrypto, It is possible to turn on two-factor authentication in the Account details section.
Device security and privacy
In addition to the information you need to log in to, it's important to keep your own devices, such as your phone and computer, safe. Protecting your device with a password or similar method is an essential part when talking about device security. It is also important to protect your device from viruses, spyware, and other malicious software with an antivirus program from a trusted and well-known brand. Besides, it's a good idea to keep your device's operating system up to date. It is also important to remember that cryptocurrency services should only be used on your own devices and not, for example, on a hotel or library computer.
In addition to the security of your account and devices, it is possible to increase the security of cryptocurrencies by taking care of your own privacy. This means that it is recommended to talk about one's own cryptocurrency holdings in public, for example on the Internet.
Storing cryptocurrencies
Finally, the security of one's own cryptocurrency holdings also depends essentially on where they are stored. You can store cryptocurrencies, for example, in a cryptocurrency marketplace like Northcrypto, a mobile or desktop wallet, and a hardware wallet i.e. cold wallet. In particular, this guide will cover the use of a cold wallet, as it is generally considered to be the most challenging but also the safest way to preserve cryptocurrencies. Northcrypto also stores customers' cryptocurrencies in cold wallets.
A cold wallet is a device that is usually attached to a computer and often resembles a memory stick. The strength of the cold wallet is that cryptocurrencies are kept offline, i.e. not connected to the internet. For this reason, a cold wallet reduces the likelihood of viruses and other online risks. On the other hand, the cold wallet also comes with a great deal of responsibility because the cryptocurrencies in the cold wallet are completely under the control of the user and if the user makes some kind of mistake, the cryptocurrencies may disappear permanently. Therefore, the cold wallet is recommended for people who have some technical knowledge and understanding of, for example, cryptocurrency transactions. In addition, the purchase of a cold wallet does not make sense if the price of the wallet, i.e. around 60-200 euros, is significant when compared to the value of the cryptocurrency holdings.
Cryptocurrency scams
When dealing with the safe storage of cryptocurrencies, it is also good to be aware of the most common scams related to cryptocurrencies. You can read more about these in our blog post about cryptocurrency scams.
Summary
The important things in keeping cryptocurrencies safe are quite simple because they are associated with account and device passwords as well as email account, as with almost any other service that requires a password. In addition to ensuring good passwords and email account and device security, two-factor authentication is a great way to improve account security. In storing cryptocurrencies, a cold wallet should be considered when the value of cryptocurrency investments rises to thousands of euros and technical expertise and cryptocurrency knowledge are at a sufficient level.
Ville Viitaharju
Cryptocurrency specialist
Last updated: 10.02.2023 09:17
