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Using Cryptocurrency Cold Wallets Safely

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Shivangi Mujumdar Follow

INDIA

Feb, 04 2021

Feb, 04 2021

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The features of cryptocurrency have led to popularity worldwide. However, the security concerns associated with digital assets have risen rapidly due to many data thefts and hacks, among other fraudulent activities. The only solution put forth by the Blockchain experts is to store your assets in cold wallets. Before we throw light on how cryptocurrency cold wallets can be used safely, let us find out what a cold wallet is. A cold wallet is otherwise referred to as offline storage of cryptocurrencies because it does not require an internet connection. 

 

Use strong passwords 

 

The first and the easiest way to keep your cold wallet safe is to secure it with a password that has good strength. The stronger the password is of your device, the higher are the chances of having your digital assets safe. Remember to either backup or pen down your password in a safe place that is away from anyone's vigil. 

 

Keep wallet's recovery seed safe 

 

The recovery seed needs to be written and kept in a remote location for restoring all the information in hardware malfunctioning or failure. If the recovery seed is lost or misplaced, wallet recovery would be next to an impossible affair. 

 

Use multi-signature security 

 

Suppose your wallet gets compromised, multi-signature acts as a savior. Multi-signatures restrict digital assets' access because complete access to your digital investments will only take place when every signature is verified.  

 

Backup your wallet regularly 

 

It is highly recommended by cryptocurrency influencers that you perform frequent backups for your wallet. Moreover, the backups should be stored in multiple locations.  

It is always advisable that the major chunk of cryptocurrency is stored in cold wallets only, and if the safety measures are religiously adopted, then you can proactively safeguard your hard-earned crypto investment. Hence you can now keep your cryptocurrency wallets safe and secure. 


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Shivangi Mujumdar

CBW - External Analyst

INDIA

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