Buying crypto, experimenting with dApps, making payments, and watching the value of your portfolio grow are just some of the most exciting aspects of cryptocurrency. But the most important thing is to ensure the security of your crypto wallet, which is where all this activity starts. Keeping your crypto wallet secure should be the first lesson for beginners. It is equally important for experienced crypto users to keep up with new best practices and standards. Security issues generally come down to two factors: external threats and human error. Learn how to improve the security of your crypto wallet and overall crypto security in a few easy steps.
Use a Reputable Wallet Provider
Before you import your keys or transfer crypto to a new wallet, make sure the wallet provider has a good reputation in the industry. Read reviews from several unbiased publications. In addition to positive reviews, research usage statistics to get an idea of how popular the wallet is with the general crypto community. For example, Bitpay statistics show how often wallets are used for transactions and their transaction success rates. If a wallet is used consistently for transactions, it could be an indicator of widespread use and credibility in the industry.
Buy, store, swap and spend cryptocurrency securely with BitpayGet the Bitpay Wallet appLimit the use of centralized exchanges and custodial services
Despite all reputable custodial services committed to user safety, it only takes a few bad episodes to understand why storing a large portion of your funds with third parties is a bad idea (see Mt. Gox and FTX). For this reason, crypto users should only use custodial services on a limited basis. Instead of one central wallet, leverage multiple wallets – a hardware (cold) wallet for savings, a self-custody mobile wallet (hot) for transactions, and a custodial wallet as needed. Spreading the assets across multiple wallets you can read about all the different types of crypto wallets and how to use them.
Be careful where and how you buy crypto
Buying crypto, whether as an investment, spending or interacting with blockchain experiences, is a necessity in the cryptocurrency world. Only use trusted exchanges or partners. Beware of complicated buying procedures, unreliable exchange rates and tempting offers. If a deal is too good to be true, it probably is. BitPay offers its users a variety of secure ways to buy cryptocurrencies through trusted, established partners such as Simplex, Wyre, and Moonpay. See how you can securely buy crypto at great rates and have it delivered to any wallet in minutes.
Back up your wallet (seriously!)
Be sure to record your recovery phrase as soon as you create a new wallet or key. As a means of giving you complete control over your assets, self-custody wallet providers like Bitpay do not save or maintain seed phrases. Your funds are most likely to be lost if you lose access to your wallet before recording your seed phrase. There are many ways you can store your recovery phrase securely – with a lock box, vault, metal plate or good old pen and paper. However, it’s a bad idea to save it in a location that is connected to the internet and could potentially be hacked – think email, password managers or note apps – all of which should be avoided. Read more about recovery phrases.
Leverage 2 Factor Authentication (2FA)
Depending on your wallet provider, you may be able to take advantage of 2FA device-based security. BitPay Wallet uses 2FA to improve security by requiring you to enter a code generated by your authenticator app to sign in (if you’re using a BitPay ID account).
This can be enabled in Bitpay by going to Settings > Tap on Your Account > Two Factor Authentication > Select Enable
Use biometric/facial recognition or a one entry passcode to lock your wallet
Under normal circumstances, it is inevitable that someone else can handle your phone. Use any additional layers of security included with your wallet. Bitpay Wallet offers optional fingerprint, facial recognition and PIN screen lock to protect your assets from unwanted intrusion and give it extra privacy protection. This can be enabled under Settings > Security > Lock App
Use encrypted passwords for added security
If your wallet provides an option to use an encrypted password, this can be used as an additional layer of security and prevent an unauthorized user from sending funds from your wallet. This can be enabled in Bitpay Wallet on your chosen key/wallet. Read more about using encrypted passwords in the BitPay app.
Like your personal recovery phrase, this password is not stored by BitPay. It is your responsibility to keep it safely where only you can access it.
create a multisig wallet
A multisig wallet, also known as a shared wallet, is a type of crypto wallet that requires two or more signatures to confirm and send a transaction. These signatures can be done by multiple parties (similar to a joint account) or by a single party signing from multiple devices (as a security measure). Leverage mutlsig, while more cumbersome for a steady stream of transactions, is a tried and tested method of securing your crypto wallet as a thief would have access to multiple devices to steal or transfer your funds. May need it. Read more about creating and using a multisig wallet with the BitPay app.
Beware of scams and phishing attempts
Although hacks do happen, the most common scams are often phishing attempts where an unsuspecting crypto user inadvertently grants access to a wallet to a suspicious source. As a rule of thumb, never sign in to any crypto-related account after following a link from a source that you can’t 100% confirm is legitimate. This could mean emails, Twitter threads, Airdrops, Reddit messages, or texts. No legitimate wallet provider or exchange, including BitPay, will ever ask for your recovery phrase, private key or encrypted password.
Follow these helpful tips on how to keep your crypto wallet secure and you should stay clear of the biggest risks in cryptocurrency. Remember to stay up to date on the latest crypto security news. As an ever-evolving space, new security tips and scams appear almost constantly.
