Keeping your crypto on any exchange can be highly dangerous— regardless of how big or well-known, the exchange may be. If you have a significant stake, it’s best to transfer most of it to your wallet. Retain what you think you’ll need to trade in the future.
For example, one CoinSpot Exchange user shared that he deposited $4,000 and changed it to BTC to withdraw the coins to his external wallet. He had met all the CoinSpot Know Your Customer (KYC) requirements and was eligible to spend more.
He verified his credentials, including his phone number and email. However, the firm insisted they had to call him to confirm the withdrawal. He has never withdrawn his $4,000 and claims the firm has made excuses.
This post will talk about the best tips for holding your crypto safe and avoiding the complications of keeping them in the exchange.
How Do I Keep My Cryptocurrency Safe?
1. Invest in a Cold Wallet
Cold wallets, also called the hardware wallet, aren’t linked to the internet, making them safe from cyberattacks. Keeping your crypto keys in cold wallets is the safest choice since these wallets are encrypted.
In 2019, BITpoint (Japanese exchange) identified an unauthorised withdrawal of about $32 million from their hot wallet in various cryptos targeting more than 50,000 customers. BITpoint had five cryptos in its hot wallet — Bitcoin Cash, Bitcoin, Ethereum, Ripple, and Litecoin. However, the exchange confirmed that their cash holdings and cold wallet weren’t affected by the event.
2. Use Protected Internet
When trading or completing crypto transactions, only use a protected internet connection — please avoid using public Wi-Fi connections. While linking to your internet, use a VPN for further protection. A VPN hides IP addresses and locations, keeping your online activity private and hidden from dangerous actors.
3. Have Multiple Wallets
You may diversify your bitcoin assets by using various wallets, as there aren’t many restrictions on creating wallets. Utilise a wallet for daily trading and store the surplus assets in other wallets. This safeguards your cryptocurrency portfolio and reduces the chances of compromised security or losing all your crypto in a single attack.
4. Protect Your Device
To secure your account against the most recently discovered vulnerabilities, ensure your device is constantly updated with the latest antivirus software. You can hinder fraudsters from exploring the flaw by developing programs to address the vulnerability. You can achieve this by using a sturdy antivirus and firewall, which will increase your device’s protection.
5. Regularly Update Your Password
For the security of your account, you cannot overestimate the value of a strong password. According to a study in the United States, at least 75% of millennials use one password on more than 15 different applications and social platforms.
The study observed that most of them used the same login on more than 50 sites. Ensure to set unique and complex logins. If you own private wallets, use different passwords. You can add a layer of protection by using 2FA (two-factor authentication) or MFA.
6. Watch Out for Phishing Attacks
In the crypto world, phishing attempts using dangerous promotions and emails are more common. Therefore, stay cautious when doing crypto transactions and don’t click on questionable or anonymous links.
In a recent crypto scam, the cyber organisation “CryptoCore” used spear-phishing techniques to hit cryptocurrency exchange platforms. Since 2018, fraudsters have targeted organisations in Japan and the United States, stealing cryptocurrencies worth $200 million in just two years.
According to ClearSky, before initiating the spear-phishing campaign, CryptoCore undertook surveillance to find the email addresses of the exchange’s staff and security officers. These campaigns were conducted by impersonating associated firms and individuals using fake sites and adding harmful URLs in documents through emails.
Other Related Questions
Can I Leave My Crypto On CoinSpot?
Technically, you aren’t required to store your cryptocurrencies in cold storage or install hot wallet software on your computer. Many cryptocurrency platforms allow their users to keep cryptocurrency in their exchange wallet, and some investors prefer having it there.
How Long Should I Hold My Cryptocurrency?
The answer to this question heavily depends on the trading objective of an investor. Usually, long-term traders hold onto their assets for years to increase their reward. Therefore, if you’re confident that blockchain technology will thrive in the future, investing in digital assets over a long period will be an excellent choice.
Can CoinSpot Be Hacked?
Yes! CoinSpot does not keep significant amounts of Coins within the platform for the apparent security threats. Holding cryptos in the platform’s wallet poses a security risk and may expose investors to hackers and Coin embezzlement.
Is CoinSpot A Crypto Wallet?
CoinSpot is Australia’s biggest cryptocurrency exchange, with over two million users, since its establishment in 2013. Regardless of your trading expertise, they make it simple to purchase and sell Trust Wallet Tokens.
How Do I Protect My CoinSpot Wallet?
Keep coins and tokens in a private cold wallet. Also, remember not to dispatch coins or tokens to someone you do not entirely trust. There are various ways of protecting your CoinSpot wallet, and if you’re green in this field, don’t hesitate to ask for help from the exchange or professionals.