With the growing popularity of cryptocurrencies, online transaction security and crypto portfolios has become a major concern. Between pirate attacks, malware and security flaws, users must adopt rigorous practices to protect their digital assets. This article gives you the best strategies to strengthen the protection of your funds and avoid threats.

With the growing popularity of cryptocurrencies, online transaction security and crypto portfolios has become a major concern. Between pirate attacks, malware and security flaws, users must adopt rigorous practices to protect their digital assets. This article gives you the best strategies to strengthen the protection of your funds and avoid threats.

The world of cryptocurrencies is based on decentralization and anonymity, but that does not prevent risks. Whether you are an occasional investor or a seasoned trader, your crypto portfolios and your online transactions are potential targets for cybercriminals.

It is therefore essential to understand good practices to secure your assets, avoid phishing attacks and protect your personal data. The use of secure platforms, the implementation of effective storage solutions and the application of advanced protection methods are essential to avoid any loss of cryptocurrency. Here are the keys to strengthen your safety.

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Understand online transactions and crypto wallets

Online transactions in cryptocurrencies are based on blockchain technology, a distributed and secure register that records each operation in a transparent and immutable manner. Unlike traditional banking transactions, crypto transactions do not require intermediaries such as banks. They are validated by minors or validators according to the network’s consensus protocol used (Proof of Work or Proof of Stake). Each transaction is associated with a private key which allows the user to authorize fund transfers from their portfolio. Crypto portfolios are essential tools to store, send and receive cryptocurrencies. They exist in different forms, including software wallets (applications or browser extensions) and hardware wallets (physical devices offering better safety). Understanding their operation and the associated risks is essential to avoid any loss of funds and secure its digital assets.

To summarize:

• Cryptocurrency transactions: take place on the blockchain, a secure distributed register where each operation is registered immutably. When a user sends bitcoin funds or any other digital currency, the transaction is checked by network nodes before being added to a block.
• Crypto portfolios: allow these transactions to be managed by storing the private keys necessary to sign and authorize payments. There are different types of wallets adapted to the needs and safety levels of each user. Understanding their operation is essential to avoid losses and risks of hacking.

Choose a secure crypto portfolio

Before you start your online transactions, it is essential to select a secure portfolio. There are several types of wallets, each offering a different level of protection.

Wallets hot vs. cold wallets

• The hot wallets are connected to the Internet, facilitating access to funds but increasing the risk of hacking. They are suitable for frequent transactions, but expose users to potential cyber attacks.
• Cold wallets are disconnected from the Internet, providing better protection against online attacks. They are ideal for storing large sums in the long term.

Multi-signating wallets

Multi-signating (or multi-SIG) portfolios offer reinforced security by requiring several signatures to authorize a transaction. Unlike conventional wallets where only one private key is enough, multi-SIG require the approval of several parties before validating a transfer of funds. For example, a portfolio 2 out of 3 means that on three associated private keys, at least two must sign the transaction. This approach is particularly useful for companies, investment funds in crypto and users wishing to limit risks in the event of theft or compromise of a key. Although they offer better protection, multi-signating portfolios require rigorous management of keys to avoid loss of access to funds.

Strengthen the protection of its access

Pirates use various methods to steal your access information. Robust authentication is therefore essential.

Use two factors authentication (2FA)

Authentication with two factors (2FA) is an essential safety measure to protect your accounts related to cryptocurrencies. It adds a second protective layer by requesting additional validation after entering your password. This second factor can be a code generated by an application like Google Authenticator or Authy, a physical safety key (Yubikey) or, in some cases, an SMS (although this method is less secure due to SIM Swap type attacks). By activating the 2FA on your exchange platforms and your wallets, you considerably reduce the risk of unauthorized access, even if your password was compromised. It is also crucial to save your recovery codes to avoid loss of access in the event of a problem with your 2FA device.

To summarize:

• Applications of 2FA: Google Authenticator, Authy and Microsoft Authenticator are reliable solutions that generate single -use temporary codes.
• Avoid SMS: Codes 2FA sent by SMS can be intercepted via SIM Swap attacks.
• Save your emergency codes: in the event of loss of access to your 2FA application, keep a secure copy of your recovery codes provided by the platform.

Properly manage your recovery sentences

The recovery sentence (or seed sentence) is a crucial element to access and restore a crypto portfolio in the event of loss or failure of the device used. This suite of 12, 18 or 24 words generated randomly when creating a Wallet allows you to find access to the funds stored on the blockchain. It is imperative to never store this sentence online, whether on a computer, a smartphone or a cloud service, as it could be compromised by malware or hackers. The ideal is to write it on a physical support, such as paper or a metal plate resistant to fire and water, and keep it in a secure place, like a safe. Avoid sharing it, even with relatives, because anyone in possession of this sentence has total access to your digital assets. Finally, for optimal safety, consider storing several copies in different safe places in order to minimize the risk of loss.

Protect yourself from threats and attacks

The safety of digital assets is based on the ability of users to identify and prevent different existing threats. Pirates use various means to try to steal cryptocurrencies, ranging from phishing to malware, including targeted attacks. To minimize risks, it is essential to adopt rigorous cybersecurity practices.

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Protect your devices and network

IT threats often target the devices used to access wallets and exchange platforms. It is therefore recommended to:

• Maintain its operating system and updated software to correct security vulnerabilities.
• Install an efficient antivirus and anti-malware to detect and block potential threats.
• Use a firewall to filter suspicious connections and prevent intrusions.
• Favor a connection via a VPN to hide its IP address and secure its exchanges on the network.

Avoid scams and phishing attacks

Phishing is one of the most common methods used by cybercriminals to steal sensitive information. To avoid these attacks:

• Never click on links sent by e-mail or message without prior verification.
• Check that the URL of the sites visited corresponds well to that of the official platform.
• Activate account security alerts to be informed of any suspicious connection attempt.
• Never share your private keys, recovery sentences or passwords with anyone.

Securing your online transactions and protecting your crypto portfolios is essential to avoid financial attacks and losses. By adopting rigorous practices such as the use of secure wallets, the implementation of advanced authentication measures and the prevention of threats, you will limit the risks. In a constantly evolving digital universe, staying informed and applying these good practices is the key to a safe crypto experience.

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