The interest in cryptocurrencies is growing year by year, but this unfortunately does not translate into increased awareness of the safety of digital media. In this text we will introduce this subject and discuss the basic principles of safe use of cryptocurrency.
On or off the stock exchange?
Let us start with an answer to the basic question – how we will use our cryptocurrencies. If what we are interested in is day trading, we can leave some funds on the trusted stock exchange we use. Of course, all the surpluses that we hold as an investment for a longer period should be kept in a private wallet with a private key that only we have access to. We have at our disposal, for example, a hardware wallet or a more radical solution – paper wallet. The latter, although it guarantees a high level of security, may be unsatisfactory for active users, for whom convenience is also important.
A hardware wallet, such as Ledger or Trezor, provides at the same time a great comfort of use, as well as a decent level of security. CEO Binance, one of the largest stock exchanges, calls on his clients not to keep crypto on his platform. His attitude is a logical consequence of what has been happening on the market for a long time. Since digital currencies have become popular, hacker attacks on stock exchanges and private individuals have also been a plague. Although Polish stock exchanges such as BitBay and CoinDeal have done well so far in securing user funds, it should be remembered that they are intended for cryptocurrencies trading and not for long-term storage of funds.
How do I feel safe? We are already explaining!
You certainly have the least risk if, after purchasing a cryptocurrency, you secure it with a hardware wallet or a paper roll.
A hardware wallet is a small device, often reminiscent of a flash drive, which helps to safely store private keys to our assets. Thanks to its compact size, it is comfortable to carry in a bag, pocket or with keys to the apartment. However, it is best to hide them in a safe place at home.
Nowadays hardware wallets also have different forms. There is also a Finney smartphone from Sirin Labs available on the market, which is not only a phone function, but also a wallet for cryptocurrencies. Similar function was also decided on by such brands as HTC or Samsung. Planned next devices of these companies show a new trend in digital currency storage.
Of course, the paper wallet is at least as safe an idea. It is nothing more than a printed sheet of paper that contains a private key to our wallet (also in the form of a QR code to make it easier to access them). This type of wallet can be generated almost instantly using pages such as MyEtherWallet. Production of more decorative paper wallets is also the company Ballet Crypto famous businessman from the cryptocurrencies market – Bobby Lee. In such a form it is possible to make something like an immortal or just a necklace. The perfect gift for a Bitcoin fan!
Keeping funds on the stock market
We understand, however, that there are also cases in which it is more convenient for you to keep cryptocurrencies on the stock exchange. It is possible that your model of day trading requires such an approach. However, most savings should always be outside the stock exchange. So how do you secure your account on the trading platform so that nobody will take it over and steal it from you?
This is a rule that must apply to any platform that requires us to log in. It doesn’t matter whether you are talking about e-mail, Facebook, Instagram or the stock market. A strong password is the basis for your online security!
But how to create a strong password? It must have a minimum of 8 characters and consist of:
- lowercase letters,
- capital letters,
- special characters (e.g. ! or @ or $).
It should have nothing to do with the user’s login. It’s also best if it doesn’t contain your name, surname, date of birth or other data that are easy to predict. Each platform we log in to should have a different password. If you are afraid that you will not be able to remember them, you can use the notebook.
The largest digital currency exchange, BitBay, also recommends using a two-step login.
“This way no one can log in to the BitBay account with only a password. A two-stage login requires an additional component that makes it much more difficult to access a third party account.
– are reminiscent of experts from the stock exchange.
In this respect, you have a few options on how to use the two-stage login:
- e-mail codes – this is a simpler method that does not require us to download the application to your phone. Each time you log in, you only receive a confirmation code in the e-mail, which you must enter in the pop-up window after completing your password. This is a standard on BitBay. Remember, however, that if someone takes control of your e-mail, they will also be able to access your account on the stock exchange.
- Google Authenticator is a smartphone application that allows you to generate one-time log-in codes that change exactly every half minute. Each time you enter your password, the stock exchange will display a window in which you should enter the code generated by the Google application. This is a great way to secure your account, because it requires a separate device – even if someone hacks into your computer, they will not have access to your phone and will not be able to log in to bitbay or any other platform.
Confirmation of actions on your account
Additionally, we recommend that you enable the option to approve shares on your account. This guarantees that no one will pay out the funds without your knowledge. BitBay also has this feature.
You can confirm the shares on the Polish platform using Google Authenticator or e-mail codes. They work in a similar way as in the case of two-stage logging. After confirming a specific action, you will see a window on the screen where you only need to enter the code from the application or e-mail. Only after you enter the correct code and confirm the action will be completed.
How does the stock exchange itself protect our funds?
Of course, in the crypto world to a large extent yourselves are responsible for your funds. This distinguishes this ecosystem from the world of banks and traditional finance (although it is slowly changing).
Remember – especially when choosing a platform for day trading – that the exchange itself should also make every effort to protect our cryptocurrencies and data. We were able to talk to BitBay about this issue and how it looks in their country.
BitBay keeps clients’ funds in cryptocurrencies on cold wallets. In practice, this means that the funds of exchange clients are stored offline, outside the platform servers. If the wallets are not connected to the network, it is impossible to access them by unauthorized persons.
BitBay also encrypts important data:
“Our exchange runs on dedicated encrypted servers with full redundancy. Databases, backups, wallets, user passwords – all important data is properly encrypted.
The connections used by our exchange are also encrypted with SSL (https). This ensures that your data is secure when you use BitBay.
Security of crypto is the basis for investing in this space. If you do not comply with the rules mentioned above, you run the risk of losing money.