- Crypto enthusiasts can use password managers to safely store their passwords without remembering them.
- It is important to have a strong password because it’s the first line of defense for crypto assets.
Importance of Passwords
In today’s time, the security of cryptocurrencies is paramount, and as a crypto enthusiast, the most effective way to protect the user’s crypto assets is through the use of passwords.
In this era where security breaches can wipe out billions of dollars worth of crypto assets, the need to master the art of password management is critical. The reason why password security matters is because it’s the first line of defense against any attempt at a security breach and safeguards their crypto assets.
If this is not taken seriously, then it may result in hefty losses as transactions on a blockchain are irreversible. This is why it is crucial to set a strong password because hackers are continuously developing newer technologies and finding newer ways to find their way past blockchain technology.
A user can follow the below guidelines to set a strong password:
- The length of a password plays an important role in making it uncrackable, make sure their password is at least 12 characters long.
- Combining different types of characters, such as uppercase, lowercase, numbers, and special characters, also makes their password tougher to crack.
- Refrain from using personal information such as a phone number, birth date, or other common words because these are easier to guess, and they don’t want to risk their crypto assets on a mere guess.
Best Practices for Password Management
- Never set the same password for all the crypto-related accounts. Set unique passwords for each of the crypto-related accounts, so even if one of their accounts gets compromised, they won’t lose all of their crypto assets.
- Another method to protect their crypto assets is to use password managers, These managers generate complex passwords and store them, eliminating the need to remember their passwords.
- Enabling 2-factor authorization can be beneficial as it adds an extra layer of security. Even if a hacker manages to hack one layer of security, they will find another layer.
- Another basic habit that the user can follow to keep their crypto assets safe is regularly changing their password. This reduces the chances of hackers getting unauthorized access to their crypto-related accounts.
Advanced Techniques for Password Security
- Multifactor authorization is one of the advanced techniques that one can use. It goes beyond 2-factor authorization as it involves biometrics, hardware tokens, etc.
- Next is the hardware wallet. These wallets save their private keys offline, leaving no room for hackers to gain access to them, ultimately leading to the safety of their crypto assets.
- Some platforms follow strict and complex policies for password protection. By embracing these policies, they can rest assured that their crypto assets are safe.
It is Important to Protect the Recovery Seed
In case a person loses access to their crypto account or password manager, their recovery seed becomes of utmost importance. Go through the steps below to find out how to save it.
- The best way to secure one’s recovery seed is to write it down on a piece of paper or something and store it in a secure facility like a safe or a deposit box.
- Another way to secure their recovery seed is to store it on offline digital storage like a USB or a hard drive, keeping it away from the internet as it may allow hackers to get access to it.
- The last way is to split the recovery seed into multiple parts and store them separately in various locations.