This is the last week of National Cybersecurity Awareness Month, and here is Tip #27: Keep your cryptocurrency safe.
There are various ways to store your cryptocurrency, but some are safer than others in terms of security and exposure to theft.
In 2019, hackers breached 12 major cryptocurrency exchanges and stole more than $292 million worth of crypto.
Your crypto storage method should align with the intended use of that cryptocurrency.
Steps you can take
Not actively trading your cryptocurrency on an exchange? Then no need to hold your assets on an exchange-based, online wallet where your keys are held in the cloud.
You should move your crypto keys to a more secure wallet like desktop or mobile wallets. While these wallets are still considered hot wallets (meaning they are connected to the internet), they offer better security, don’t require third-party trust and aren’t subject to exchange hacks.
Want even more security? Move your keys to cold storage (meaning they are not connected to the internet) in a hardware wallet. Hardware wallets hold your keys on an offline device and connect to a computer via USB. If you’re holding large amounts of crypto, then your best bet is cold, hardware storage.