The crypto market is diverse, with several options in currencies to build a robust portfolio. As you start looking beyond Bitcoin, Ethereum emerges as the most popular cryptocurrency in the market. With a market cap of a whopping $150 billion (as of December 1, 2022), it surely makes a lucrative asset to own.
Buying Ethereum is a savvy move, but you cannot leave your ETH holdings to chance when it comes to security. Ethereum has a higher hash rate than Bitcoin, making it inherently more secure against 51% attacks. Overlooking security is still a blunder you should avoid because hackers and attackers have unprecedented ways to compromise crypto assets.
Fortunately, you can rely on Ethereum vaults and digital wallets to safely store your Ethereum. While that’s a good start, you can go the extra mile to secure your holdings for the long haul. The best part is that you need not be a genius to do it. Here is a comprehensive guide to keep you a step ahead of hackers and attackers.
Choose a Vault Provider Wisely
Hacking remains a major concern for crypto owners over the years, with over $20 billion stolen in 2022. Ethereum is as much at risk as any other cryptocurrency, so you must build a robust defense against potential threats. Choosing an ETH vault you can rely on can make all the difference. Reputable Ethereum vaults are the foundation of secure storage.
According to Casa, Ethereum owners must take self-custody of their holdings with multiple keys stored on different devices in different locations. The approach adds extra layers of security to your assets. It is better than leaving them with one hardware wallet or a custodian. Since you have control over your coins, you need not worry about their safety.
Utilize Two-Factor Authentication
Securing your Ethereum in a reliable ETH vault is a good start, but you can do more to fortify your assets. Why not empower your vault with another security layer with two-factor authentication (2FA)? It is the simplest way to beat hackers and attackers trying to cut through your defenses and steal your digital assets.
Enabling 2FA means anyone trying to access your wallet will have to provide additional verification steps during the login process. For example, you may use a mobile app, SMS code, or hardware key to secure your wallet. With these additional identification methods, no one can forcefully access your wallet, even if they have your password. They will still have to get through the secondary verification method.
Safeguard Your Private Keys
Another tip to securely store your Ethereum in your ETH vault is to safeguard your private keys. Following a few best practices can keep you on the safe side. Stick with secure hardware devices or paper wallets instead of storing private keys digitally.
Having them on a device connected to the internet makes them vulnerable to hacking attempts. Remember to create encrypted backups of private keys to facilitate easy recovery in a worst-case scenario. Also, store them in several secure physical locations.
Update Software and Firmware
Did you know that outdated software or firmware can elevate the risk of crypto security breaches? The solution is as simple as regularly updating ETH vault software and hardware wallet firmware. You may feel lazy about making timely updates, but it’s a small effort to avoid big problems.
Developers frequently offer updates to enhance security measures and address software vulnerabilities. Stay vigilant and track the latest updates. Follow the recommended procedures for updates and implement them as soon as possible.
Commit to Safe Online Behavior
Your online behavior may not seem a part of securing Ethereum vaults, but it does go a long way. You can imagine the consequences of downloading files from unreliable sources or clicking suspicious links. It may lead to malware and phishing attacks that pose a danger to your crypto assets.
Being vigilant while sharing sensitive information online is equally crucial. Additionally, stick with a dedicated device and browser for your ETH activities. It limits exposure to potential risks from other online activities.
A Word of Caution
Cryptocurrencies are alluring for cyber attackers. It means that you need to be extra watchful about your ETH vault. Besides choosing a reliable one, you must follow these security measures to keep your assets safe from hackers. The best piece of advice is to own your vault and secure it with your private keys rather than leave things to chance. Not to mention, the flexibility and control put you in a better place.