Safety tips for blockchain investors

  • Kepler Finance
  • Feb 10
  • Article
safety sign with a lock on a shield Design vector created by freepik -

Learning how to keep your wallet safe has never been more important. Cryptocurrencies are the newest asset class in the world at this point. With this designation, comes a set of rules and responsibilities that many of us are far from used to.

Because of this and what the blockchain is at its’ core, users now also own the responsibility for securing their assets, despite the high security standards that most blockchain firms espouse. Making this even more important is the fact that over the course of the short history of cryptocurrencies, numerous ico data breaches as well as general blockchain data breaches have already occurred due to weaknesses in how blockchain groups store investors and user information.

The protection that we are used to getting from powerful technology companies has effectively gone out the window. We are now responsible for every facet of our financial lives, overarching which is the fact that it’s on us to effectively prevent data breaches. While this may seem like an impossible endeavor, a roadmap toward achieving adequate security of your crypto assets can be established. Before we jump into the specifics of this however, the central tenet of blockchain wallet security needs to be established. If you do not own the private key to your crypto wallet, then you are not the owner of any of your crypto assets. That means, for example, if you are a Coinbase user, you do not really own your private keys. The same goes for every other third party platform. With this in mind we can now move on to a simple list to follow to truly answer the question of how to secure your crypto assets:

In most cases, an effective starting point is mitigating against any sort of third-party risk as we suggested above.

Even though hardware wallets are always the best options, for trading and other short-term activities, it is given that you will still have to use mobile or software wallets. Therefore, keep these four small rules in mind before and while you are using any wallet that falls into these two categories

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Password management needs to be approached differently. We could all use some education here. Passwords are far from simple to work with however, the more you increase your own password security, the more likely an attacker will choose to forget you in favor of a weaker, more vulnerable target.

Don’t speak about your holdings in public places at all! You are the only one protecting your assets, and an easy way to protect them is to form good habits around keeping information related to your crypto investments as close as your bank account info, if not closer.