BitBit Financial is owned by iMining Technologies, a public company traded on TSXV under IMIN.

How do I keep my cryptocurrencies safe?

By transferring your cryptocurrency into a cryptocurrency wallet you help protect your cryptocurrencies from being hacked, stolen, or removed.

Now that you’ve chosen your exchange for buying, selling and trading cryptocurrencies, you’ll need to keep your money safe. In fact, protecting your cryptocurrencies is the single most important thing you can do. The first step is to transfer your cryptocurrencies into your own cryptocurrency wallet.

Close-up view of man opening safe with bitcoin cryptocurrency

Lesson 08

Protection of Cryptocurrencies

As mentioned before, there are two different types of wallets: Hot wallets and cold wallets. A hot wallet is a cryptocurrency wallet connected to the internet. They are typically free and are generally considered riskier as hackers can penetrate them more easily. 

A cold wallet is a cryptocurrency wallet not connected to the internet, like a piece of paper, a USB, or hard drive. Cold wallets are considered more secure and as a result you’ll find they are a little pricier. 

Now, let’s review other easy ways to protect your cryptocurrencies.

Two-factor authentication (or 2FA)

First, set a two-factor authentication (or 2FA) in your account within the exchange and within your email address. 2FA means you have two different ways (like a password and verification code) to prove that it’s you trying to access your account. It’s another layer of security.

Passwords Protection

Protecting your passwords is also a simple and great way to protect your account with an exchange. Using a password manager, like Lastpass, can help you create a long and complicated password that will make it very hard for hackers to access your account.

Secure Private Keys

Never hand out your private keys to anyone. While it is ok for others to know your public keys, you should never ever share your private keys with someone else.

Avoid Public WiFi

Do not use a public WiFi when logging into your account because this can seriously put your cryptocurrencies at risk. In fact, you shouldn’t use a public network for personal matters (like logging into your bank account). If you must check the status of your cryptocurrencies, or check your account, make sure to use a WiFi network that is familiar to you or use your mobile’s data.

These are quick and easy ways to protect your cryptocurrencies. Remember, keep your cryptocurrencies as safe as you would your Canadian Dollars. And always keep your financial information private to yourself.