If you own digital currency or are ready to invest in the space, it pays to know best practices to secure your digital assets rather than relying blindly on vendors such as Coinbase and exchanges Bittrex, Poloniex, Binance, etc., to do the job for you.
Take cyber security into your own hands with these five simple tips from Friedman CyZen LLC’s cyber security advisors:
- Enable two-factor authentication on your accounts. Two-Factor Authentication is another security layer that requires, in addition to a password and username, information only the user would know. Two-factor authentication kicks in when verifying your account when you send or withdraw tokens from an exchange and when you log into on Coinbase. This ensures that you are the sole proprietor to the second form of authentication on your accounts. You can enable dual factor authentication through applications such as Google Authenticator and Authy.
- Upgrade to wallet 2.0. Hardware wallets such as Ledger Nano S and Trezor are some of the most secure ways to store your currencies. These hardware wallets serve as multifactor authentication, because you need the device and a pin to access your tokens. The user in charge of their tokens solely owns the private seed— a password key that is specific to each device.
- Whitelist your IP address. Whitelisting is a setting that protects your IP address when conducting sensitive exchanges or accessing Coinbase— ensuring that only you can access your account from a specified IP address. In most circumstances, you should use a Virtual Private Network IP to connect from any remote location. This provides additional security during exchanges, since you will be behind a remote IP address.
- Go ghost. Use a unique email that is not affiliated with any other accounts when trading. Protonmail is a website that doesn’t require a name or email address— leaving you completely anonymous. Additionally, the email requires multiple passwords to access the email address, allowing two-factor authentication.
- Make it complicated. Protect yourself from multiple threat vectors by diversifying your passwords to include 16+ characters in case one of your accounts is breached. Increasing your passwords’ length and complexity makes it difficult for hackers to easily crack your password. You can take it a step further by verifying if your current passwords have been breached by visiting a breach password database. Password databases are a large set of files that were stolen from websites and released. In most circumstances, if your password was used for one website, it was likely used for another. Hackers rely on these databases to recycle passwords to attempt a fake user login.
For further guidance on how to protect your digital currency from cyber attacks, contact Friedman CyZen’s cyber security advisors.