The crypto community frequently says, “not your keys, not your coins,” because the cryptocurrency sector is relatively new. This means a lot of users aren’t yet familiar with the security measures that seasoned investors have come to adopt. It’s crucial to establish a routine that includes multiple safety strategies to safeguard your crypto investments from potential scammers. Here are some tips for a better smartphone cryptocurrency wallet security.
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Avoid Using Rooted Devices
Rooting a phone for experimentation might be enjoyable, but it’s important to understand that doing so may compromise or diminish the security measures you believed were intact upon purchase. Storing financial assets on a device that has undergone significant modifications by tampering with its fundamental settings is risky. If you decide to modify your phone, ensure it’s an extra one devoid of cryptocurrency wallets.
Keep Your Cryptocurrency in Various Cold Storage Wallets
Trading cryptocurrencies, rather than merely holding them, might make storing the majority on an exchange appear attractive. However, from a cybersecurity viewpoint, this approach is far from advisable. Despite the existence of secure exchanges, security breaches are a reality, and it’s not uncommon for platforms to freeze withdrawals without notice, particularly in market downturns.
When you buy Bitcoin, it’s wiser to keep your cryptocurrency holdings separate from exchanges, opting instead for various wallets and having a preference for cold or hardware wallets.
Although some software wallets offer considerable security, cold wallets outshine them in virtually all cybersecurity-related aspects. This is because cold wallets cannot be accessed online, making them significantly more secure.
For optimal security, it’s advisable to spread your cryptocurrency across several cold wallets, allocating only a minor fraction to a software wallet or an exchange, especially if trading is your priority.
Install Updates
The frequency of updates for both Android and iOS might appear overwhelming, yet it’s essential to ensure these updates are applied at the earliest opportunity. An application harboring a security flaw on your device can compromise itself and other applications or lead to more severe security breaches. Diligently applying updates is a straightforward approach to reducing the risk of vulnerabilities.
Redundant Backup Codes
It goes without saying, but it’s crucial to back up your seed phrases, private keys, and other essential backup codes. This doesn’t imply merely storing them in your phone’s notes app and neglecting them. Instead, jot them down on a sheet of paper (or multiple sheets), store these papers in various backup spots or redundancy, and if you decide to keep them digitally, ensure the files are thoroughly encrypted.
Avoid Apps That Read Your Screen
Whenever we download and initiate new applications on Android or iOS, we may be prompted with unfamiliar requests for permissions or disclosures. It is wise to scrutinize these permissions thoroughly, yet it’s common for many to bypass this step and approve all the app’s requests.
Mobile app users should refrain from allowing apps the ability to overlay or read their device’s screen. These permissions could potentially lead to the exposure of sensitive information like passwords and backup codes. While not every application seeking these permissions intends harm, any of them could harvest your personal data, leaving you powerless over how that information is used thereafter.
Endnote
Cryptocurrency wallets are crucial in managing and storing digital currencies such as Bitcoin, Ethereum, and various other cryptocurrencies. Nevertheless, the security of your digital assets is a significant issue, especially with the rising occurrences of cybercrime.