11 Things you need for a safer crypto environment.
Let's face it… wherever you find money, you will find people who want to steal it, especially online. So, it makes sense to set up a secure environment around your crypto; one that is separate from your normal computer and internet activities.
Consider implementing these 11 Things before you buy your first cryptocurrency:
1. Create a new secure trading station.
If you are regularly going to be trading crypto versus accumulating or holding long-term. Consider buying a new, inexpensive computer you will only use for crypto trading. Uninstall unnecessary pre-loaded software. Only load the software you need to run crypto-related functions, like wallets, a browser, and possibly a VPN. This is not absolutely necessary, but if you can afford it, it will definitely beef up your security. Also, unplug your LAN or disconnect from your Wi-Fi when not in use.
2. Make sure your computer is free of malware.
If you have not purchased commercial antivirus software, you can use a free software program called Malware Bytes (https://www.malwarebytes.com) to scan for malware.
Note: When installing wallet software, you may have to turn off MalwareBytes - just be sure to turn it back on once the installation is complete.
3. Get a notebook.
Assume that whatever you write out and store in a file on your computer is accessible to hackers. You will need to write down all your passwords, private keys, seed phrases, etc. as they are created. While you will need it as a temporary store, you will need to back up your passwords and seed phrases properly. We even have a handy video showing you how to destroy your temporary "paper wallet" here, once you've safely backed it up. If you insist on using paper, you can buy an almost indestructible notebook made just for cryptocurrency investors called a Stonebook for about $45. But, you will want to store it in a water and fire proof bag, inside a locked safe or safety deposit box.
4. Back up your seed phrases.
This is the most important step of all. The promise of crypto is that you can become your own bank. Sounds great, but it means you are 100% responsible for whatever happens to your crypto and therefore you must secure your seed phrase. If you lose your password or seed phrase and failed to back it up, there is no one to call to fix that. Safely backing up and storing your seed phrases, passwords, and 2FA recovery codes is vital. Check out our article on "How to Back up a Seed Phrase," and be prepared before you buy your first crypto.
5. Create long, truly random passwords.
Every account, application, email, and wallet needs to have a completely different password. You should also have a strong password to turn on your computer. Never store your passwords in your browser. If you use online password managers, be sure the password to login to the manager is 20 characters long and complex. Write them down, then back them up and store them safely!
6. Create a brand-new email address.
Create a brand-new email address that does not clearly identify your identity. Use this only for crypto. Do not use it for anything else - not even crypto newsletters! ProtonMail is an excellent choice for secure email. Make sure your recovery email has a strong password, too.
7. Buy an inexpensive smartphone.
Buy an inexpensive smartphone that you use only for cryptocurrency trading. Password protect that phone. (If you plan to use your current phone, remove your number from all online sites.) Make sure your cell phone provider will allow you to require that a passcode be given before they will activate a new SIM card. Some providers do not have this option and scammers have been known to go into their store and claim they lost their phone and need a new one. They usually have just enough information to "prove" they are you and they get a new phone with all your information on it! Require a passcode and back it up.
8. Download two factor authentication apps.
Two common authenticator apps for your smartphone are "Google Authenticator" and "Authy". The first one is the de-facto security standard of 2FA apps. The second is a more convenient option that supports cloud sync/recovery, however, this convenience comes with according risks.
WARNING: Don't forget to backup your 2FA recover codes! Losing your 2nd-factor authenticators could easily lead to unrecoverable accounts lockout. This is a VERY common oversight.
9. Buy a cold storage wallet.
Buy a cold storage wallet to store your cryptocurrencies on. These will cost you between $60 and $200. There are a few reasons to never leave your cryptos on exchanges. One, hackers could attack the exchange and take your coins. Two, the exchange could go down or go out of business. And three, regulators are coming into the space and shutting down exchanges that do not meet central bank regulations. Not all wallets hold all cryptos. You will need to find and buy a wallet that will accept the cryptocurrency you want to buy. Check out our list of wallets with detailed instructions about how to set up and use them here.
10. Distribute your crypto among several wallets.
You may want to divide up your cryptos and store them on different devices. That way, if one gets compromised, you haven't lost everything.
11. Record detailed instructions about your crypto investments for your heirs or beneficiaries.
Keep it simple, but detailed. You will need to store this in a safe place and implement a way that your heirs can find it or be notified. One of the simplest ways to do this is via the Vault12 Digital Inheritance solution. And, if you haven't already, create a will. It's just the right thing to do.
Bonus: One more thing…
…Don't brag about your crypto purchases in public places, online, and offline. Unfortunately, there are stories of hackers and criminals targeting people with newly found crypto wealth. Keep it to yourself.