Protect Your Crypto Assets Today — 5 Essential Tips for Storing Cryptocurrency Securely on Exchanges!

Learn how to choose a reputable exchange, enable 2FA, use a secure password, and monitor your accounts. Protect your cryptocurrency investment today!

Well, well, well, look who finally decided to take their cryptocurrency security seriously! It’s about time, if you ask me. I mean, you wouldn’t leave your entire life savings in a bag on the street, so why would you leave your crypto unsecured on an exchange? But I get it, it’s easy to get caught up in the excitement of the crypto world and forget about the dangers. But don’t worry, that’s where I come in. I’m here to make sure you don’t become a statistic. By following these five tips, you’ll be one step ahead of the hackers, and one step closer to living the crypto dream.

Let’s take a step back and look at the bigger picture. Cryptocurrency is the future, there’s no denying that. According to CoinMarketCap, the crypto market capitalization has grown from 17.7 billion in 2015 to over 1.5 trillion in 2021. That’s a massive increase, and it’s only going to get bigger. But with this growth comes more danger. As more and more people get involved in the crypto world, hackers are also finding new and innovative ways to steal your hard-earned crypto. In fact, according by Chainalysis, crypto-related crimes have increased 300% in the past year. Yikes!

“In crypto, you’d better know how to secure your vault.”

Tip #1: Choose an Exchange with a Strong Reputation. This one’s a no-brainer, folks. You wouldn’t trust your life savings with a shady, unknown bank, would you? Of course not! The same rule applies to exchanges. You want to choose an exchange with a strong reputation, one that’s known for being secure and trustworthy. And let me tell you, there’s no shortage of exchanges out there, so you have plenty of options to choose from. Now, you might be wondering, “But how do I know if an exchange is reputable?” Good question! Here are a few key things to look for:

• Security Measures: Does the exchange have top-notch security measures in place, such as 2FA and secure passwords, not to forget hardware keys? The exchange should prioritize their users’ security above all else.
• Regulation: Is the exchange regulated by a reputable organization or government? This can give you peace of mind that the exchange is following proper procedures and operating within the laws of your jurisdiction.
• User Feedback: What do users have to say about the exchange? Are they usually happy with their experience, or are there a lot of complaints? User feedback can give you a good idea of what to expect from an exchange.

By choosing an exchange with a strong reputation, you’ll have better chance of keeping your crypto safe and secure. If you are reading this, you already know which are the top exchanges you should trust your assets with, right? No? Well, we don’t want to raise collars and say that we are the best, but hey, you can definitely trust Burency Exchange. And let’s be honest, who wouldn’t want to sleep soundly at night knowing their crypto is in good hands? But, let’s not get ahead of ourselves. There’s still more to be done. Tip #2: Enable Two-Factor Authentication (2FA) is up next.

“If you don’t own private key, you don’t own Bitcoin.”

Tip #2: Enable Two-Factor Authentication (2FA)! If you’re not already using 2FA, what are you waiting for? It’s like locking your front door with a chain, and then leaving the key under the doormat. It’s just common sense. So, what is 2FA, you ask? Simply put, it’s an extra layer of security that requires a code in addition to your password when logging into your exchange account. This means that even if a hacker gets hold of your password, they still won’t be able to access your account — like having a guard at the door checking your security code before you’re allowed in.

But wait, there’s more! There are different types of 2FA to choose from, including SMS 2FA, which sends a code to your phone via text message, and Authenticator App 2FA, which generates a code through an app on your phone. Both are effective, but many security experts recommend using Authenticator App 2FA over SMS 2FA, as it’s more secure. Now, I know what you’re thinking. “But Rupak, this sounds like a hassle. Do I really need to go through all this just to log into my exchange account?” Yes, my friend, you do. And you’ll thank me later for advising you this.

According to a report by CipherTrace, 82% of cryptocurrency theft in 2020 was due to compromised passwords. By using 2FA, you can significantly reduce the risk of having your crypto stolen. So, it’s worth a few extra seconds of your time to set it up, wouldn’t you say? By adding 2FA to your exchange account, you’re adding another layer of security to your crypto. And let’s face it, the more security you have, the better. It’s a win-win situation, folks. So, go ahead and enable 2FA today. Your crypto will thank you for it. Up next, Tip #3: Use a Strong and Unique Password.

“Security is like an onion. The more layers, the better.”

Tip #3: Use a Secure Password, people! I mean, come on. You know the drill. Don’t use “123456” or “password” as your password. That’s just asking for trouble. And while we’re at it, don’t use the same password for every account. That’s like having the same key for every door. Not smart. And here’s a fun fact for you: According to SplashData’s 2021 Worst Passwords list, “123456” and “password” are still the most commonly used passwords. So, don’t be one of those. Use a secure password and protect your crypto! So, what makes a secure password? Here are a few tips:

• Length and Complexity: The longer your password, the better. Aim for 16 characters. Not to overlook, use a mix of uppercase and lowercase letters, numbers, and special characters making it more impossible to crack.
• Uniqueness: Don’t use a password that you have used before, and stay lightyears away from commonly used passwords like “qwerty” or “iloveyou” — because passwords like these are like creamy cheese for hackers.
• Passphrases: Consider using a passphrase instead of a traditional and boring password. Here’s an example, “ILoveCryptoMoreThanMyCat!” is a strong password with uppercase, lowercase, and special characters.

But hey, how can you even remember all your passwords when you can’t even remember all the algebraic formulas you were taught in high school? Try using a password manager. NordPass and LastPass are my favourites. By using a secure password, you’re adding another layer of security to your exchange account. Let’s face it, the more security you have, the better. It’s like having a moat around your castle, keeping the bad guys out. So, take a few minutes to create a secure password for your exchange account and enjoy peace of mind knowing all your crypto is protected.

“Only keep the crypto asset you can afford to lose.”

Tip #4: Store Only What You Need on the Exchange. Don’t be a hoarder. If you have a bunch of crypto just sitting on an exchange, you’re making yourself a big, juicy target for hackers. Who wants to be a target? Not me, and probably not you either. So, what do I mean by store only what you need? Well, think of it like this: you wouldn’t carry around all your life savings in cash, right? You’d keep some in a savings account and only carry what you need for the day. The same goes for your crypto. Only keep what you need for immediate transactions or purchases on the exchange.

By only keeping what you need on the exchange, you’re adding another layer of security to your crypto holdings. And, who doesn’t love more layers of security? It’s like having a guard dog and a security system for your house. The more protection you have, the better. “But won’t it be a hassle to constantly transfer cryptocurrencies in and out of the exchange? Won’t it be a security issue on its own?” You are right, it might be a bit of a hassle, but trust me, it’s worth it. Think of it as a tiny little inconvenience for the peace of mind knowing your crypto is safe and secure.

And, just in case you needed a little more convincing, here are a few statistics to drive the point home. Chainalysis says that in 2020, more than $1 billion in crypto was stolen from exchanges. The following year, just the average cryptocurrency theft was worth $21 million, including worth more than 19,000 bitcoins. So, don’t be a statistic. Store only what you need on the exchange and keep the rest in a secure location. Your crypto (and your nerves) will thank you. Next up, we have Tip #5: Keep Your Exchange Account Up-to-Date. But, hold on to your hats. This one’s wild.

“Security is a superstition. It doesn’t exist in nature.”

Tip #5: Regularly Monitor Your Accounts, people. This one’s a no-brainer. If you want to keep your crypto safe and secure, you need to keep an eye on it. That’s just common sense. I mean, you wouldn’t leave your car unlocked with the keys in the ignition, right? Same goes for your crypto. You need to make sure it’s secure and protected at all times. By regularly monitoring your accounts, you can catch any suspicious activity before it’s too late. You’ll know right away if there have been any unauthorized trades or withdrawals and you can take action to securing account.

Just in case you needed a little motivation, here are some more statistics to get you moving. Your trust Chainalysis, right? Well, they revealed that in 2020, more than 40% of cryptocurrency thefts occurred because of compromised or weak passwords. Not to forget in 2021, more than 10% of thefts occurred because of phishing attacks. While the crypto exchange space is still in its infancy, educating yourself is a better thing to do than hodling more and more cryptos. So, make sure you’re regularly monitoring your accounts and keeping an eye out for any suspicious activity.

In conclusion, these are the Five Tips for Securely Storing Your Cryptocurrency on an Exchange. Let’s have a quick overview to see if you remember them all — Choose an Exchange with a Strong Reputation, Enable Two-Factor Authentication (2FA), Use a Secure Password, Store Only What You Need on the Exchange, and Regularly Monitor Your Accounts. By following these tips, you’ll be well on your way to keeping your crypto safe and secure. So, what are you waiting for? Get out there and start securing your crypto from fraudsters. And, as always, happy trading!

“The safe crypto is the one you control by yourself.”

Because, let’s face it, the crypto world can be a dangerous place if you’re not prepared. But, with a little bit of effort and some common sense, you can keep your crypto secure and enjoy the many benefits that come with owning it. And, if you’re still feeling a little unsure about crypto security, remember to follow these tips, and enjoy the peace of mind that comes with knowing that all your cryptocurrency hodlings are secure. And, with that, I’ll leave you with one last popular quote to remember, “Cryptocurrency is money, and money is serious business.” — Satoshi Nakamoto.

Non-Financial Advice: The data, resources, and statistics in this article have been consolidated from multiple sources and neither the author nor the site is responsible for any financial profit/loss incurred from the data and opinions present in this article. Readers understand that all risks associated with cryptocurrency are taken on by themselves.