Know-How to Protect Your Digital Coins Against Hacks

The crypto industry has received broad attention across the world. Individuals, businesses, and companies have started accepting digital currencies like fiat currencies. But the extensive use of digital exchanges resulted in malicious hacks and attacks. The result of the hack of crypto exchanges is that users have lost many digital currencies. The hackers are experts in removing the digital tracks and seem to disappear on the internet. Because cryptocurrencies are unregulated, you cannot track or hear from hackers ever again. Because of such activities, many digital assets have disappeared and are next to impossible to recover. Enhance your trading journey and skills by visiting the official website of bitql.

Understand best ways to secure your digital coins against hacks

The cryptocurrency space tends to expand and grow at an astonishing rate, and along with it, the methods of hackers and thieves are also increasing to steal crypto coins. Nonetheless, the investors and traders must stay cautious while storing and protecting their digital tokens by considering all the preventive measures.

Digital wallets are the key.

Most investors buy digital currencies like Bitcoin or XRP from crypto exchanges to store their cryptocurrencies with the digital platform. The digital exchanges take preventive measures to prevent users’ coins from thefts, but these exchanges aren’t immune to cyberattacks in real-time. Therefore, it is crucial to choose a personal wallet to protect your crypto investment. Mainly, two different digital wallets are physical and hardware wallets. Most people prefer to invest their money in hardware wallets as these are incredibly secure. 

Physical wallets are cold wallets that are similar to USB devices to store your crypto coins. On the other hand, the hardware wallet gets connected to the private key, which allows users to decrypt the digital wallet and access their coins. Thus, hardware wallets stand firm against thieves and hacks, but there is still a risk of losing the password key that users can never recover once it is lost.

Various other types of wallets

Other than physical and hardware wallets, there are multiple other secure digital wallets. Other wallets also work in the same way but work without handheld devices. These wallets also have private keys, but they aren’t recoverable, making it crucial to store the private keys at a secure location that no one knows but you’ll remember. Many individuals have used the best security measures to secure their keys, such as storing them in secure deposit boxes or vaults or keeping them as encryption. Other types of digital wallets include:

Desktop wallets are wallets that users can only access through their computers. These wallets have no direct link to the internet. However, developers designed some viruses to help users retrieve the necessary information for wallets that might not be completely secure. 

Paper wallets are online wallets that create digital wallet addresses along with private keys. These types of wallets allow users to print their keys and secure the printed information at safe places. 

Cryptocurrency Exchanges

Most of the digital currencies transactions get completed by users through crypto exchanges. These are online platforms that users can easily access through a web application or web browser. The digital exchanges require users to use fiat currencies to buy and sell digital currencies and also allow exchanging cryptocurrencies for fiat currencies. 

Crypto experts advise users to avoid storing digital funds in exchanges because of two main reasons. Firstly, there are chances that the exchange gets hacked, which will make you lose your crypto investments. Secondly, the exchange holds users’ cryptocurrencies on an IOU basis, which means if the exchange shuts down for any reason, users won’t be able to recover their holdings. 

The tech-savvy investors that have complete knowledge of the crypto market tend to move their crypto holdings as soon as they buy them from the crypto exchange platform. They choose to store cryptocurrencies carefully in personal digital wallets instead of storing them at exchanges. The famous cryptocurrencies like Bitcoin, Ripple, Cardano, Ether, and more are available on various exchanges. Choose the best exchange that offers excellent security and safety to your coins and doesn’t add additional risk by storing your holdings on crypto exchanges.