Ever since the launch of Bitcoin in 2009, the global cryptocurrency market has undergone significant changes. One of which is the prevalence of sophisticated cyber crimes and fraud. Moreover, the decentralized nature of blockchain technology also makes cryptocurrency prone to security threats. 

Did you know more than $2.2 billion worth of crypto funds were stolen through malicious attacks and hacks in 2024? The shocking news? A significant portion of these funds could have been saved if only crypto users had followed safety precautions. With this in mind, here are five tips you should follow to keep your crypto assets safe:

1. Use a Crypto Wallet

This is pretty obvious, yet often overlooked. The first step in safeguarding your crypto assets is using the right wallet. There are two main types:

Custodial Wallets: With a custodial wallet, a third party holds and manages your private keys on your behalf. Currency exchanges, financial institutions, and independent digital asset custodians can provide these services. They implement institutional-grade security measures and ensure regulatory compliance to safeguard your assets. 

Non-Custodial Wallets: They give users complete control over their private keys and crypto assets. Non-custodial wallets reflect the core philosophy of a decentralized system. To set up a non-custodial wallet, you need to generate your private and public keys, as well as a seed phrase for recovery. 

As you can see, the entire custodial vs non custodial wallets debate comes down to control. Custodial wallets like BitGo take care of everything on your behalf, whereas non-custodial wallets require constant input from the cryptocurrency owner.

2. Consider Cold Wallets

One of the best ways to safeguard your crypto assets is to use a cold wallet. Think of it as a device or method that allows you to store your cryptographic keys offline. Cold wallets are never connected to the Internet, which gives institutional investors and users peace of mind.

For years, businesses and governments have used this technique to safeguard sensitive data. And now, cold wallets are within the reach of cryptocurrency players.

Cold wallets are especially beneficial for those who wish to store large amounts of cryptocurrencies and believe they won’t need them any time soon. 

3. Enable Two-Factor Authentication

Multi-factor authentication is one of the most effective security measures for all types of financial transactions. Two-factor authentication (2FA) adds an extra layer of security to your login process, making it more difficult for hackers to intercept confidential data. 

Enable 2FA on your cryptocurrency exchange platform, mobile wallets, and other accounts to protect your assets. You can also use multi-signature protocols for secure transactions.

4. Strengthen Your Passwords

Next, make sure your crypto accounts are password-protected. Avoid using names, common dates, and easily recognizable patterns. You can use a password manager to generate unique passwords. This will prevent unauthorized users from snooping.

Avoid using your crypto accounts on a public Wi-Fi, even if they’re password-protected. 

5. Be Wary of Phishing Scams

Lastly, be wary of fake crypto exchange sites or wallet services. Scammers create bogus sites and send emails urging you to either log in to your crypto account or enter private keys. Always confirm the URL, and of course, never share your private keys online!