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Cyber threats are as clear as day but many still court disaster with bad password habits, like using 123456 and using the same password for everything.
In the case of cryptocurrency investors, using insecure passwords for virtual wallets or forgetting private keys are their biggest undoing. So, what do you do to avoid the embarrassment of going from Bitcoins to no coins?
The Proverbial Headache
Managing a myriad of logins for different platforms can be a headache and a half, especially if you’re a cryptocurrency investor that never sleeps. A little slip here and there could make a cybercriminal rich. So, it’s time to throw everything and the kitchen sink to keep your coins safe.
Keeping Them Secure
Let’s get one thing straight: foolproof internet security is a pipe dream for now. Deterrence is the order of the day and, a simple open source password manager could leave hackers face-palming with frustration.
Password managers feature a range of capabilities to protect your accounts. In military speak, we can relate them to an anti-ballistic missile system which intercept and shoot down threats. The best in the business should consist the following features:
Encryption – Password managers are generally encrypted and requires a master password to open the magic door to other passwords that you’ve authorised it to manage. Unless you’re swept up by the Christmas spirit of giving and share your master password, you can consider your cryptocurrencies well protected.
Generator – Creating a long unique password containing a string of characters and symbols for different accounts is hard enough. Remembering them all is pretty much American Ninja Warrior-level tough. A password manager can generate complex yet secure passwords to protect your cryptos and also help identify weaknesses in your existing ones.
Two-Factor Authentication – Additional layers of security never hurts and this is why the two-factor authentication process, or 2FA, exists. History tells us that passwords alone are inadequate. A secondary layer of authentication using another string of information is a strong defence against attempts to breach your cryptocurrency storage.
The following password managers are widely regarded as the best bet for your crypto safety:
- LastPass
- Dashlane
- KeePass
- Keeper
- 1Password
Part 4 of our protection series will illustrate how a simple paper wallet can enhance the safety of your coins.
Disclaimer: This article is meant to provide suggestions only. Readers should perform their own due diligence before making decisions on security and safety.