Once you have passed the threshold of knowing the fundamentals of Bitcoin and how blockchain works, it may have convinced you enough to invest or participate in this new revolution. Congratulations and welcome!

There are many benefits of Bitcoin, one of many being the unprecedented freedom it provides to banks through its technology. This is a revolutionary idea, no more banks are needed. The idea that you are the sole owner of your money thanks to technology seems basic, although a tool has never been invented to guarantee it.

This new freedom is refreshing, although a service that was provided by banks is now under their responsibility, the security of their assets.

Here you will find all the basic safety tips that you should know. Once covered, you can check out our advanced cryptocurrency security tips. Many people do not take any security measures and are usually victims of hackers.


You should view this as the sheriff of a town protecting the bank vault from villains. Villains (Hackers) will always attack the easy option, they will ignore any complication or difficulty. Avoid at all costs being the easy option.

The inherent security of Blockchain and its cryptocurrencies

When you have conversations with other people about cryptocurrencies, you will easily find the counter-argument that the blockchain or your cryptocurrency can be hacked. This is a misconception that many people tend to commit.

This technology is very safe, due to its cryptographic algorithm that protects cryptocurrencies, hence the name of crypto. The algorithm is already a security measure against hackers. To break this algorithm, you would need immense almost unattainable computing power. For example, the oldest cryptocurrency, Bitcoin, has not been hacked since its inception in 2008.

If hackers can’t hack the crypto itself, their obvious target will be users. They will look for gaps in security and hack the platform you use to store your digital assets to line your pockets. Therefore, the first and foremost safety tip is to take safety measures and take them seriously.

Use complex passwords

For many readers, this may seem obvious. However, even today the three most common passwords are 123456, 123456789, and the funniest password, password.

Try combining uppercase and lowercase letters, numbers, and symbols. The longer the password, the better. You can use online password meters to see how strong your password is. It is a good idea to use a password generator to get random passwords.

A popular service is password managers. They generate a unique, long, and very complex password for each online account that you own. These services are very convenient, safe and are used by many high-profile companies. Either way, if you have the time and dedication (or a large sum of money in cryptocurrencies) the safest solution will always be to write down the passwords on paper, even if you keep them well and make copies since if you lose them you have lost access to that money.

Avoid public WiFi

Public WiFi can be a convenient service, however, you should avoid interacting with any exchanges or wallets while connected. Hackers can easily collect data transmitted over the network, for example, your login credentials.

We strongly recommend never connecting to any financial services on these networks. In a desperate situation, at least use a VPN.

Beware of phishing scams

You may know of phishing scams as the most common method of stealing your credentials for traditional online banking. Cryptocurrency exchanges and wallets are also subject to this covert technique. It is one of the most basic scam techniques, used by hackers to steal your Bitcoin or altcoins.

Phishing scams create a fake website that resembles the original site. The user is deceived and does not know that he has been directed to a fake website. The user inserts username and password calmly, then hackers have their credentials. Hackers can easily send the funds to your wallets.

If you regularly access exchanges, a fairly easy security measure is to bookmark these websites in your browser. Always access your bookmarks and you will be safe. Phishing sites tend to focus on the most common or most inconspicuous typographical errors. A notable example was with myetherwallet (A respectful Etheruem wallet platform) that fell victim to several of these scams.

My ether wallet original

At first glance, you will not notice anything strange. The layout is a copy of the original site, although the URL is slightly different: myetherwallet.com vs mÿetherwallët.com. The Y and E have an umlaut, a small detail that you won’t be able to easily see. By putting your access codes on a fake page, hackers will get everything they need to own your cryptocurrencies.

Don’t store your cryptocurrencies on exchanges

This may be the most common mistake. The exchange already provides you with a clue of what the purpose is on its behalf. Exchange = Exchange. They are used for exchange, they are not intended for the custody of your cryptocurrencies. Most of the stolen Bitcoin has been due to hacks by exchanges, not the cryptocurrency itself. Hackers usually attack small platforms that lack security, although it should be noted that several large exchanges have been attacked. Here is a list of some of the most notable Bitcoin heists to date:

Mt. Gox: 850,000 BTC (worth $ 450 million at the time in 2011)

Bitfinex: 120,000 BTC

Bitcoinica: 43,554 BTC

Bitfloor: 24,000 BTC

Bitstamp: 19,000 BTC

Binance: 7000 BTC

Poloniex: 97 BTC

We listed Binance and Poloniex, not for quantity, but to let you know that even reputable exchanges can be hacked. Fortunately, exchanges have evolved and so have their security measures. The biggest BTC hacks occurred mainly when cryptocurrency exchanges were still young and their security measures were low. However, Binance was attacked in 2019. As such, no exchange is safe from a hacker attack.

Binance mobile

The only reason to have your digital assets on an exchange would be if you are a day trader. If you are a holder or a long-term trader, the best practice would be to store your Bitcoin and/or altcoins in a cryptocurrency wallet. If you want to exchange it for another cryptocurrency or fiat send it to your wallet once you have completed the operation. Remember, whoever owns the private key controls the money.

Keep your device safe

Use your common sense and focus on basic user security practices such as: don’t download any suspicious files, keep your firewall up to date and up, and don’t visit known dangerous websites. If you want to install software, always check the opinions of other users first or if the company behind it is transparent enough that you can trust them.

Buy a cryptocurrency monitor or hardware

This security measure is highly dependent on how much money you have in Bitcoin. As a general rule, we recommend that if you have more than $ 500 in Bitcoin it is advisable to buy a cryptocurrency hardware wallet. There are many hardware wallets on the market.

Ledger and Trezor

Encrypted hardware wallets are the safest method of storing your digital assets. A cryptocurrency hardware wallet is a specialized device, which has been designed exclusively for security.

The device stores their private keys within an impenetrable circuit and allows them to sign transactions with a manual, non-digital click. Like many other wallets, it offers seed to easily transfer your private keys in case your device is stolen or lost.

If you have a small amount of Bitcoin or want a faster and seamless wallet, you can use hot wallets. There are differences between hot wallets and cold wallets (Hardware wallets). If your device is in a secure environment, hot wallets are safer than leaving your cryptocurrencies on an exchange.

Enable two-factor authentication

Two-factor authentication is an extra layer of validation security. Add an extra step in the login process, an extra layer of security. You need to insert an extra password to access it. This password is generated by an application (Google authenticator or Authy are the most used on the market) stored on your smartphone. Every two seconds a new password is generated for greater security. The purpose is to create an additional external security layer to make the hacker’s job more difficult. The hacker would have to steal your phone and gain access to it.

Google authenticator

Most exchanges offer two-factor authentication and are very easy to install. Two-factor authentication can and should be used in the email you use to access your exchange accounts.


Some exchanges also offer additional options like a random PIN sent to your email and SMS. In any case, we strongly recommend avoiding using SMS verification due to its insecurity.

Keep your crypto assets private

You can be proud of an investment or trade you have made with a cryptocurrency. Many investors brag about their holdings and successes, many did so in the big boom of 2017. Today people have learned that this may not be a good idea. The most extreme example is that of the Bitcoin owner who was killed after being forced to send his Bitcoin.

Cryptocurrencies do not have an identity linked to money as traditional banking does. If you have the Bitcoin private keys, you are the owner. Therefore, if you are forced to send your Bitcoin to an address, you will not be able to claim it. For criminals, this can be attractive.

A simple solution is to not show off your possessions to people or at least keep a low profile about it. At conferences, meetings, or out of the curiosity of your friends, you may be asked how many cryptocurrencies you have. Avoid answering this question for your safety, especially if you have a substantial quantity.

  • Sending funds to the wrong address
  • Cryptocurrency addresses are very long and complex.

If you send your assets to the wrong address by mistake, you will lose your funds. Since the addresses are not attached to an identity, you will not be able to contact the person who has the address. Also, if you find the owner, you will not be able to force him to return the funds. With Bitcoin and altcoins, there is no middle man which can have many advantages, but for these types of issues, you are alone.

Bitcoin address example

As the addresses are very long, it is not recommended to type these addresses manually. Many exchanges and wallets offer a copy to a clipboard button or a QR code. Selecting the address manually can also create errors. Either way, if you copy and paste the address you should always check if they are the same. Unfortunately, there have been cases where the copy and paste functionality has been hacked. To avoid worse evils, a common practice is to check that the first and last 5 digits of the address match before sending.

Cryptocurrency transfers have very low fees. Therefore, it is highly recommended to send a small amount and check if the transfer worked, and then send the full amount. It costs almost no money, so there is no excuse.