Normal computers are not very secure. They can have viruses and other bugs which allow people to spy in on you and your information as well as make forced changes to your computer.
As mentioned in intro to crypto, cryptocurrencies distribute the responsibility of verifying and recording transactions to any number of computers. This system is known as the “blockchain”.
The distributed recording system is commonly described as “immutable” because once data is verified and recorded it becomes permanent and nearly impossible to edit by hackers or other destructive people.
Because the blockchain lets two people transact directly with each other, there is no need for middlemen such as banks and payment system companies like Paypal.
On the other hand, cryptocurrencies have none of the regulation and insurance found in traditional banking because banks and governments have no part in creating or maintaining crypto.
This organizational independence means you are responsible for safely storing your access keys. You are also responsible for the security of your email, phone, and computer. To protect against any single point of loss, you should also create secure backups of your access keys.
If your email, phone and/or computer is not secure and your bitcoin is stolen, there is nobody to call to get your money back.
The most famous and widespread theft of bitcoin was valued at $450,000,000. While there are other smaller and less-known thefts such as losing $8,000 in Coinbase and having $20,000 stolen from Bittrex the point I’m trying to make is, you are responsible for your crypto.
In this walkthrough, I’ll be showing you the different steps I’ve taken to protect my computers, accounts and cryptocurrency for the long term.
Please note, nothing published by me or Decryptionary constitutes an investment recommendation, nor should any data or content published by Decryptionary be relied upon for any investment activities. The following information provides only simple steps you can take to increase protection of your crypto. Decryptionary cannot accept responsibility for any loss or inconvenience caused by reliance on any material contained in this article.
Believe it or not, if you mention on Facebook, Twitter or other social media that you trade cryptocurrencies on an exchange, you become a potential target for hackers.
Obviously, throughout Decryptionary and my articles, I’ve shared that I trade cryptocurrencies. To reduce my risk, all of my accounts were set up from a private email address that has never been exposed. More on this in #3.
If you want to access your cryptocurrency accounts on a public network, using a Virtual Private Network (VPN) such as ExpressVPN or TunnelBear will prevent your information from being intercepted. A VPN will also hide your identity, location, and IP address which identifies your device.
It turns out short, complex passwords are easier to hack than long ones. For example, if tested, “C0mpl3x!”, would be easier to guess than, “HeyThisIsMyPassword!”.
That’s because a hacker has to guess at 20 characters which is more than twice as long as the first password’s 8. The longer the password, the harder it is for a computer to discover it.
Ideally, your password should be 20 characters or longer.
Lastpass uses security similar to cryptocurrencies to protect it from hackers. And all of your passwords and stored information are made unreadable so even if Lastpass was hacked, your information is safe.
Decryptionary is a cryptocurrency and blockchain dictionary. It contains over 200 simple definitions, and awesome 4th-grade, stick-figure images to make this complex subject easy as pie.
Decryptionary is more than just a dictionary. It also has simple walkthroughs and word lists to make sure you really understand the basics of crypto and how to participate.
If you liked this story, and have comments or feedback, please reply below and I’ll get back to you.
You can find more of my articles by following me on my Steemit Blog.
