Crypto Security Practices Through the Years

Cover image credit to Coinbase Wallet

In the realm of cryptocurrency, where the stakes are as high as the rewards, adopting robust security practices is not just advisable; it’s imperative. This post shares some of my personal experiences and practices over the years. It’s a layered approach from custodian / hot wallet to mobile wallets, hardware wallets / code storage.

Security Awareness and Good Usage Habits

The foundation of any secure system is the user’s awareness and habits. Understanding the threats and knowing the best practices in handling digital assets can significantly reduce the risk of loss. This includes recognizing phishing attempts, using secure connections, and being cautious about sharing personal information.

You should put most of your funds in cold storage, and only use your hot wallets for daily transactions.

Using Password Managers

As the number of online accounts we manage grows, so does the challenge of remembering complex passwords. Password managers not only help in generating and storing strong, unique passwords but also ensure that we’re not reusing passwords across different sites, a common vulnerability.

Hardware Security Keys

For an added layer of security, hardware security keys (such as YubiKey) offer two-factor authentication that is resistant to phishing attacks. These devices provide a physical token that must be present to access sensitive accounts, making unauthorized access significantly more difficult.

Encrypted USB Disks

Storing sensitive information or backup seeds on encrypted USB disks is a secure practice. Encryption ensures that even if the physical device is lost or stolen, the data remains inaccessible without the encryption key.

Physical Safes

For the ultimate in cold storage, physical safes can protect hardware wallets, paper wallets, and backup seeds from physical threats such as theft, fire, or water damage. Investing in a high-quality safe can provide peace of mind for those holding significant crypto assets.

You can also rent a safe from a reputable service provider like traditional banks.

Shamir Backup

Shamir’s Secret Sharing is a cryptographic method that splits a secret (like a private key) into multiple parts, requiring a certain number of parts to reconstruct the original secret. This method can protect against the loss of a single piece, as the secret is not compromised unless the required threshold of parts is met.

Advanced Data Protection for Google Account and Apple ID

Enabling advanced data protection features for accounts linked to your crypto activities (such as Google Account or Apple ID) can add an extra layer of security. These features often include advanced two-factor authentication methods, account recovery options, and alerts for suspicious activity.