“The crypto craze is at an all time high and with the rising craze comes the flock of inexperienced crypto users that fall victim to security loopholes and thus are the ones to bear the losses. The Novice crypto users must keep every security stance high and understand the security risks in the industry. Here we will explore 4 top tips that can help in ensuring security in the crypto sphere for a novice user”.
The Security Threats for the Novice Users
The crypto industry is in its cradle and is an unregulated market at the moment. This gives rise to risks of cyber crimes along with ease of frauds due to unregulated nature. The novice users are the most vulnerable to such risks as they are unaware of the waters they are stepping foot into and hence we felt it as an urgent need to guide such novice users in the crypto space. 4 important tips will be provided to keep you safe in the crypto world if you are new to it.
The Top 4 Tips
Choose a Crypto Exchange that is Reputable and Large
Always choose a crypto exchange to buy and sell cryptocurrencies which are reputable and large. The reputed and large crypto exchanges have the best security features in the industry and have a simplified process of buying and selling crypto. Choosing a reputed crypto exchange will also prevent you from scams as there have been events in the past when some exchanges shut their shops and ran away with the investor’s money.
Check and Then Double-check the Wallet Addresses
After you have bought some cryptocurrencies on a reputed exchange and you need to transfer some amount to someone or to your own crypto wallet for security purposes, you must check and double check the wallet address. If you type in the wallet address you must ensure that it is correct to every digit otherwise the funds will be lost forever. There are also malicious programs that change the wallet addresses you copy to the attacker’s address. So you must always check and double check the address before transferring crypto.
Digital Saving of Seed Phrase is not at all a Good Idea
Every crypto wallet has a seed phrase or the private key that must be stored for future use as without it the wallet contents cannot be accessed. losing the seed phrase will result in losing you crypto. The seed phrase must not be saved digitally as the digital device on which it will be stored can be compromised and thus compromising the seed phrase as well.
Learn to Use Cold Storages
The cold wallets must always be used for storing cryptocurrencies and the novice users must always learn to use these cold storages. Writing the seed phrase of the wallet on a piece of paper is the most secured form of storing crypto. Also there are hardware wallets which are not connected to the internet and can be used for storing the crypto safely. You must thus learn to store crypto in cold wallets if you are a novice crypto user.
Disclaimer: The article is meant for the educational purpose only and in no way it should be considered as financial advice. Own research on the topic is advisable.
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