More and more people are putting money into cryptocurrencies and NFTs, which is a good thing! As people store their money and assets online, we get closer to the fully decentralized Web 3.0, which has very strong security.
But for now, cybercriminals and other online threats can make it hard to keep your digital assets safe, even if you have all the right tools. So today, let’s learn some of the best security practices you can use right away to protect your digital assets.
Importance of Protecting Digital Assets
Despite the theoretical security of digital assets like cryptocurrencies and NFTs (non-fungible tokens), these assets are — in many ways — uniquely vulnerable to a wide range of digital threats and theft types. Whether you’re investing in crypto or looking to transition valuable real-world assets to the digital realm, knowing how to protect your assets is vital.
Think your crypto tokens are totally secure? Think again. Cybercriminals collectively stole $3.8 billion in cryptocurrency just in 2022, 15% more compared to 2021. And in any given year, crypto and digital theft account for approximately 0.71% of market capitalization. That’s much higher compared to the market cap rate for theft of traditional assets and currencies.
On the bright side, there are many security practices you can leverage to safeguard your digital assets across the board. Let’s take a closer look.
Use Hardware Wallets for Offline Storage
To store your crypto assets and other digital valuables offline, you can use a hardware wallet, also known as “cold storage.” This involves transferring your assets to a secure hard drive or other storage device that is not connected to the internet.
Since the cold wallet is not connected to the internet, hackers and other cybercriminals cannot access your digital goods. However, be careful when connecting the cold wallet to a computer with internet access.
Hardware wallets are particularly popular for storing crypto wallet keys — this is, in fact, the best way to ensure your crypto assets are safe and secure for years to come. But hardware wallets can also be used to keep NFTs and other digital assets safe in perpetuity.
Combine them with a real-world physical defense system, like a safe, and you should be set.
Leverage Air-gapped Systems and Devices
You can protect your data by using devices that are not connected to the internet. These devices are called “air-gapped” systems. One example of an air-gapped device is an offline hardware wallet. To get data from or to an air-gapped device, you must physically connect it to another device using a cable.
You could also create an air-gapped computer by removing its network connection capabilities. This can be helpful for businesses that need to protect sensitive information. For example, a company could use air-gapped computers to store customer data. This would prevent anyone who is not physically present at the company from accessing the data.
Utilize Multi-factor Authentication for Your Accounts
Multi-factor authentication, or MFA, is a vital security step you should take for all of your online accounts and assets. In a nutshell, MFA (also 2FA) involves using multiple forms of identity proof before allowing access to your online accounts, crypto wallet, and elsewhere.
As a basic example, you might require both a password and the answer to a security question to get your crypto wallet. Alternatively, you might require both your thumbprint and the answer to a security question, plus a password, before your cold crypto wallet can be opened or connected to a terminal.
To bolster your digital security even more, you should insist on a digital signature instead of a basic e-signature when accepting a critical document or acquiring digital goods. That’s because digital signatures are much safer compared to e-signatures or Simple Electronic Signatures since they use public key cryptography to make a document that can be verified to be untampered with.
Regardless, MFA improves digital security by requiring any would-be thief to breach multiple security layers instead of just one.
Update Your Passwords Regularly
Passwords are important for protecting your online stuff, but you need to change them often. Don’t use the same password for more than one account, or a bad guy could get into all of them at once.
Make sure your passwords are strong too! A strong password should:
- Have a mix of big and small letters, numbers, and symbols
- Be long enough
- Not be related to anything about you that someone could learn, like your birthday or your dog’s name
Learn How to Spot and Avoid Phishing Attempts
Phishing is an online scam that involves a cybercriminal pretending to be someone else for the purposes of getting key information, like passwords, encryption keys, etc. You need to know how to spot phishing scams and avoid them to keep your digital assets safe.
The most common type of phishing scam is the email scam. In these scams, you’ll receive an email from someone you don’t recognize, oftentimes requesting a response. If you ever notice one of these emails, delete it immediately without opening it. That’s the best way to prevent a virus from accidentally getting onto your phone or computer. (And since it’s easier than you think to fall for some of the more sophisticated phishing scams, here’s a guide on what to do if it happens to you.)
Invest in SSL certificates
SSL certification adds a layer of protection to your website and makes it harder for hackers to steal information from you or your visitors. It’s like putting a lock on your door to keep out unwanted guests.
Many people won’t visit a website without seeing the SSL padlock symbol in the address bar, which means they don’t trust the site. If you have an online business, getting SSL certification is a must to gain people’s trust and protect their information.
So, think of SSL certification as a security badge for your website. It shows your visitors that you care about their safety and that their information is secure.
Use Premium DNS services
A domain name system (DNS) turns legible domain names and web addresses into IP addresses (for example, namecheap.com gets translated into an IP address when computers and networks request information from it, then gets translated back into its domain name for easy human understanding).
However, your digital assets can be compromised if you don’t use secure DNS hosting. It’s better to leverage premium, highly secure DNS services, such as Namecheap, to ensure that your website’s domain name is kept safe from potential interdictions. Premium DNS services are further beneficial because they:
- Can secure any domain you have in mind
- Provide faster hosting speed and better hosting resources
- Are easier to manage compared to less-than-stellar DNS services
Keep All of Your Digital Assets Safe
Conclusively, it’s up to you to keep your digital assets safe and secure in perpetuity. But you don’t have to do it alone.
Upspeedhosting makes it easy to purchase an SSL certificate and get domain names with our Premium DNS offerings. Let us help you make your online operations much more secure and invulnerable to digital threats today!