Tips to Secure Crypto Assets

No matter how you define them exactly, your crypto assets represent valuables that can be converted to cash. Unlike some other types of assets (asset classes), crypto assets are without an exception intangible. 

The fact they exist in digital form only requires some specific considerations regarding keeping them safe.

Tip 1: Choose the Blockchain Wisely

The security of crypto assets begins with the blockchain. All crypto assets are stored on a blockchain

To put it (very) simply, a blockchain is a kind of distributed database that is not being recorded on a single computer/server, but on thousands, even millions of them.

Among the qualities of such design, one stands out in particular – resilience. Targeting and taking control over millions of individual database keepers is much, much harder. 

Though, not impossible. 

There are blockchains that are more secure and those with security issues (known or unknown). Choosing the blockchains and their “products” (assets they originate from) wisely will save you a lot of headaches, “proven security track record” being the key words for you.

Tip 2: Do Research on the History of Attacks on a Blockchain

There are many ways to compromise a blockchain and one of them that can cause serious harm is cryptojacking. It utilizes the victims’ computing resources to mine cryptocurrency.

In a recent report, 17% of respondents in the survey reported that their organization faced cryptojacking. About $1.4 billion in cryptocurrency were stolen in the first half of 2020 alone.

So, before actually purchasing a crypto asset originating from a particular blockchain, do some research, avoiding those that have had a history of security breaches.