Make Sure Your Crypto Is SAFE

Cryptocurrencies are decentralized digital currencies that are free from the control of a central authority. As with any other type of digital asset, your cryptocurrency comes with both benefits and risks. If you're serious about your investment, you need to ensure your cryptocurrency is safe. When storing your tokens, you want to find the right balance between functionality and security.

Take security seriously all the time

??You should take security exceptionally seriously when handling any digital asset. After all, your cryptocurrency is no exception. As the first and foremost rule of thumb, never share your private key(s) with anybody. Doing so opens you up to a potential loss of funds. For example, if you store your funds in a cryptocurrency wallet that you own but leave exposed to a publicly viewable computer, others can take your money.

??It is essential to know a few concepts before defining the best strategy to keep your cryptos safe, such as hot wallets, cold wallets, hardware wallets, and software wallets.

Hot wallets?vs.?cold wallets

??A?hot?wallet?is a wallet connected to the internet that interacts with a peer-to-peer network. Since it's an online wallet, it is faster and makes it easier to trade or spend crypto. But for the same reason, it is also vulnerable to online attacks and a possible loss of funds.

??A?cold wallet?is typically not connected to the internet, and for this reason, there are fewer chances that it gets hacked. However, although more secure, it's less convenient for trading and spending.

Pro tip: If you're storing significant amounts of your crypto portfolio online in exchange, be sure to research the company's reputation you're using.

Hardware wallets vs. software wallets

??A hardware wallet is essentially a USB device designed to store your cryptocurrencies. The two most popular hardware wallets are paper wallets and metal wallets. A paper wallet is paper that's been printed with a private key and a public address and is therefore considered a cold wallet. On the other hand, a metal wallet is designed to store your cryptocurrencies securely. Examples of popular hardware wallet brands include?Ledger?and?Trezor.

??Software wallets are apps you download onto your computer or mobile device. They work the same as hardware wallets, but the main difference is that they are generally connected to the internet (hot wallet) and more susceptible to hacks and loss of funds.?The most popular software wallets are?Exodus?and?ZenGo. In addition, crypto exchanges such as?Coinbase?and?Gemini?also have their own software wallets.

If you plan on HODLing, use a Hardware Wallet

??A "cold" wallet is a wallet that's not connected to the internet. Therefore, cold wallets are immune to many of the risks that come with hot wallets. If you don't intend to sell your crypto for an extended period, it's worth investing your money and effort into a Hardware Wallet for the part of your portfolio you want to HODL.

Additional effort #1:?Secure Your Desktop

??Your computer is one of your most important tools as an investor, so make sure it's secure:

• Avoid installing programs from unknown sources. If a program attempts to install itself on your computer without your permission, you're likely to see a security warning
• Always make sure that your files are encrypted
• When storing sensitive information (such as your private key or wallet address) store it in a password-protected file;
• Use an encrypted drive.

Additional effort #2:?Set Up Two-factor Authentication

??One of the best ways to protect your cryptocurrency is using two-factor authentication. It gives an extra layer of security that requires you to provide other info than your password to access your account. In other words, if someone were to gain access to your password, they wouldn't be able to log into your account. Instead, with two-factor authentication, they'd need a mobile phone or authenticator app to access your account.

??After knowing all the best practices related to your assets' safety, the next step is to be diligent in your portfolio strategy. Have a clear understanding of what percentage of your crypto is for trading and HODL and answer those probing questions:

• How often do I intend to trade crypto?
• Do I have HODL positions?
• Security-wise, what is the amount of my portfolio worth putting into a hardware/cold wallet?

??After that, you'll have a precise scenario of your current portfolio situation, and deciding the best combination will be an easy process.

??At Robert Ventures, we strongly believe that you are in charge of all your investments, regardless of their kind. This said, doing what is best to make sure your assets are secure is a must.

Joe Robert?is currently the Chief Executive Officer of Robert Ventures, with over 20 years of asset management experience. Since he has started Joe has created predictable double-digit returns for investors & Partners. Joe has invested in seed rounds with equity and tokens, along with a portfolio of Bitcoin, Ethereum, and other top cryptocurrencies.

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