The world of cryptocurrencies has caught on with many people. However, it’s still relatively new, and one of the reasons for this is that there are many different threats out there trying to steal your crypto.
In this article, we will cover some of the most common threats. We will also look at how you can best protect yourself against them and Crypto Investments.
Backing Up Your Crypto Assets
One of the most important things to keep in mind is that you must always know where your crypto assets get stored and how to access them.
It’s also good practice to back up your wallet files in case something happens to your computer or mobile device. The most secure way to backup a Bitcoin or Ethereum wallet is by using private keys (the equivalent of a password).
You can store these on paper, or an encrypted USB drive, but I recommend keeping everything as offline as possible for maximum safety. The tokens on the cryptocurrency markets are decentralized and secure. Still storing them properly will help ensure cryptocurrency value in the long term.
What Is a Seed Phrase?
A seed phrase is a backup of your wallet. It’s a set of 12 or 24 words that you write down when you first create a bankless account and keep it in a safe place. It is the only way to recover your funds if you lose access to the bankless app or device on which it operates. Once you create your seed phrase, don’t forget about it. It’s an extremely important piece of information!
When restoring (or “unlocking”) your bankless holdings, remember that every time someone tries to use their wallet there will be an associated cost (unless they already have some tokens). To avoid paying this fee each time by accident, we recommend taking care. If possible try reconnecting through another computer rather than trying again directly from where you were originally at work/home, etc.
How to Keep Your Seed Safe?
If you are going to keep your seed safe, then you must follow the following rules:
Don’t write down your seed phrase on a piece of paper. It will make it easier for people to steal your digital assets if they find this piece of paper. So, you must stay away from writing down any information related to cryptocurrencies because it can cost you a lot if someone gets access to it.
Don’t store your seed phrase in a digital file. If someone gets access to such a file where all the details about cryptocurrencies are stored, then there are chances that they might steal them from you and leave them with huge amounts of money in their hands.
So, avoid doing anything like this because these days theft has been increasing. Try not to keep any information related directly to crypto investments (or) any cryptocurrency which may lead to sheer loss of money invested over years together.
How to Restore Wallet From the Seed Phrase?
To restore your wallet from the seed phrase, follow these steps:
Open the same app where you created your wallet. You can find it in the same folder where you installed it or in Google Play Store. If you have used a desktop application for creating your wallet and haven’t changed it after installation, then search for it in your computer’s search bar.
Log in to the app using the username and password you provided when creating a new account for yourself on this platform (you need to do this once again).
Select the Restore Wallet option located under the Settings menu on the left side of the page.
Enter a passphrase or seed phrase (letters that were given by software while generating a private key pair) into the box provided on the screen. Now, wait while the restoration process takes place.
How to Recover Lost Assets?
It’s not the end of your crypto life. First, don’t panic. You must be having a bad day, but there is no need to worry about your losses.
Second, don’t blame yourself for making the wrong decision or being careless with your money. Everyone makes mistakes sometimes, and we can’t control everything around us all the time.
Thirdly, don’t tell anyone about it either. It can include friends or family members who may have similar interests as yours in cryptocurrencies or otherwise. They might try to convince you into giving up on investing in this industry altogether which can lead to more damage than good later on down the road.
It is especially when people realize that there’s still hope left within their investments! It will only make matters worse in terms of both mental health issues while also attracting unwanted attention from potential hackers who would like nothing more than to steal assets from others (especially those who’ve already got hacked once before).
Recovering From the Account/Exchange Hack
What should you do if your cryptocurrency account gets hacked and funds get stolen?
You should contact the authorities immediately. While it’s not typically the first thing that comes to mind, law enforcement officials are usually helpful when it comes to cases like these. They may even have a few tricks up their sleeves that you could use in recovering your digital assets!
If you suspect that your exchange got compromised due to a hack or other malicious activity, then we recommend contacting them directly.
Exchange representatives should be able to assist you in filing a claim with their insurance providers. So you can receive compensation for any losses incurred on their platform. We also suggest reaching out to higher-ups within those companies or organizations using social media platforms. It never hurts when there’s an opportunity for some public shaming involved!
How to Manage Crypto Investments Securely?
Crypto investments are a great way to diversify your portfolio and make money. However, investing in cryptocurrencies is also a very risky proposition. You need to prepare for that risk.
For example, if the value of Bitcoin drops below $1 million at any point in time (it’s happened before), all of your investments would be gone overnight—and there would be nothing you could do about it!
