IOST Wallet Series – Part 3 of 3: Securing Your Cryptocurrency
This article is the final part of our IOST Wallet series. The first part is A Beginners Guide to IOST Wallet, the second part is a guide on IOST Wallet Resources. This third and final part focuses on a general overview on how to secure your cryptocurrency wallet.
One of the greatest advantages of blockchain technology is its security, also the major threat to the industries acceptability is security too. With reports of hacks and security threats in the news every day. There is a need for Blockchain users to know and understand how to secure their hard-earned fund from hackers, phishers and cyber thieves. This guide focuses on how to protect users cryptocurrency asset.
Not Your Keys Not Your Crypto
One of the most important principles to remember when you invest in cryptocurrency is the principle of “Not your keys, not your crypto.”
This quote is popular in the cryptocurrency circle this simply means if you don’t hold the private key of your wallet, then it is fair to say your cryptocurrency in such wallet isn’t yours. A lot of people will ask what of exchange sites? As much as you would want to trust an exchange site, a major hack can happen and your funds on the exchange site stolen which could be hard for the exchange to refund.
The best practice is to allocate enough funds that you need to trade and move your money off the exchanges once the transaction is completed.
Always Back Up your Private Key
Your private key is your access to your personal wallet if you misplace or don’t have a copy of your private key then it is impossible to access your wallet hence your cryptocurrency. The best practice at all time is to have a copy of your private key saved on as much as possible secure location.
1. Save your private key where only you can access it.
2. Be careful of saving your private key on google drive or any cloud storage.
3. Do not save your private key on a friends device.
4. Never share your private key with anyone.
Use Cold Wallet
Cold wallet are hardware wallet, a hardware wallet is a physical device that is kept offline but has the ability to be plugged into a computer when needed. Hardware wallets are safe because when you make a transaction, they ask you to confirm each one by pressing a button on the device. They are pretty much hacker-proof. Examples are Trezor, Ledger Nano e.t.c
1. Always buy a hardware wallet from an official supplier.
2. Do not buy a second-hand hardware wallet or through a third party.
3. Use only trusted hardware wallet with PIN or Password.
4. Never share your password or pin with anyone.
Other Security Practices
1. Update your wallet software often.
2. Be careful of apps installed on your device (mobile/PC) where your wallet is located.
3. Secure your wallet with multi-signature to protect against theft.
4. Add an extra layer of security like 2FA if possible.
5. Check your wallet often to check for security leak and if any is found move your cryptocurrency immediately.
Securing A Compromised IOST account
Let us assume after taking all of the security measures posted above you found out that your IOST wallet has been hacked or maybe your IOST token or other relative tokens like TIX, LOL, iPLAY or METX token is been moved by hacker, relax there are still ways to make sure you take control of your account back and send your funds before the hacker does.
- What HUSD integration means for IOST Blockchain January 15, 2021
- IOST to Lead the Digital Currency Transformation October 19, 2020
- Interview with RAMP DeFI’s CEO Lawrence Lim October 12, 2020
- Building on IOST with IOST .NET SDK by Sonata September 8, 2020
- Recap of IOST AMA with Aegis CTO Christopher Holm September 1, 2020