• Sat. May 21st, 2022

How to secure your crypto-currencies!

India has seen an unprecedented increase in the number of people investing in crypto markets in 2021! Around 20 million people jumped on the crypto bandwagon in 2021. Cryptocurrencies have become part of the lexicon of Indian investors. At present, Indians hold crypto assets worth $5.3 billion! Bitcoin continues to dictate the rest of the crypto market.

Fueled by intensive publicity campaigns from prominent figures and crypto prices reaching all-time highs in April 2021, many small Indian investors are putting their risk capital into cryptocurrencies. The favorites being Bitcoin, followed by Ethereum and lesser known coins like Solana, Polygon, Terraluna and stablecoins like Tether too. As a result, crypto platforms have seen record growth in user numbers and trading volumes. India’s largest crypto brokerage platform saw a 3500% increase in trading volumes and hit 14 million users recently.

As things progress, cryptocurrencies have become mainstream. In particular, residents of Tier II and Tier III cities have started to participate in large numbers, and major players have also launched new products to attract a wider user base. With such a rapid and exponential increase in users, we feel more and more the need to secure it!

Although most crypto platforms are secure enough for a longer duration, it is always advisable to know everything you can about how to make sure you don’t get scammed or fall prey to phishing. when it comes to your hard-earned cryptocurrency. With the growing popularity, we are already witnessing various crypto scams across the world. Here are some steps to take when managing cryptocurrencies:

– Select the correct exchange

Always choose an exchange that is trusted by many and has the best security systems available to secure your cryptocurrency.

– Protect your private key

All cryptocurrencies are stored on digital wallets or exchanges, the key/password of which is given to the owner in the form of an alphanumeric code/password. It is very important to save this private key/password at all times.

– Withdraw money to hardware wallet

All cryptocurrencies can be withdrawn from the exchange and stored securely in your hardware wallets like Ledger or Trezor. You need to ensure proper key management so that even if the exchange is hacked, your funds are duly protected.

– Use cold wallets and hot wallets

There are two main types of wallets for storing your cryptocurrencies – hot and cold. Hot wallets are connected to the internet and can be accessed anytime, while cold wallets store your funds offline.

– Prevent hacker attacks

The best way to prevent attacks is to keep your keys safe and keep an eye out for any hack-related news to make sure your assets are safe.

Conclusion: Despite following all safety and security measures, you may still be vulnerable to various attacks and frauds, but caution is key to protecting your crypto assets. Crypto currencies once lost or stolen are impossible to recover. So stay alert at all times!

(Rakesh K. Singh is a lawyer by profession and is the founding head of the law firm RKS Associate. He is also the founding head of the NGO – Bharat Utthan Sangh. All opinions expressed in this article are his own.)

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Posted: Thursday March 17th 2022, 1:51 PM IST


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