When purchasing any cryptocurrency, it is important to store your funds and private keys safely.
Many long-term holders use hardware or paper wallets to store their cryptocurrency, and ensure that they hold their own private keys.
These private keys are all an attacker needs to access your funds, and there is no way to stop or reverse transactions which have been processed on the blockchain.
Despite this, many users choose to keep their cryptocurrency in an exchange wallet – protected by an email and password combination – either for quick access or convenience.
While this option is not as secure as holding your own private key, there are steps you can follow to ensure your digital currency is protected.
First line of defence
Cryptocurrency exchange Luno recently published a blog post explaining how users can keep their cryptocurrency as safe as possible while storing it on an exchange.
“There are two sides to keeping your digital currency safe,” said Luno.
“There are the (many) things that Luno does to keep your money safe and then there are the things that you can (and should) do to keep your money safe.”
Luno implements numerous security measures to ensure the safety of user funds, but attackers can still compromise these funds if they can gain access to a user’s account.
To prevent brute force attacks and the possibility of your password being compromised, the first thing you should do is to enable two-factor authentication on your account.
This will prevent malicious actors from accessing your funds – even if they crack your login credentials.
Luno said the following resources are your first line of defence against attackers:
- Learn how to identify general digital currency scams.
- Secure your email, social, and Luno accounts against hacking.
- Learn how to identify phishing scams.
- Enable two-factor authentication.
Lock your account
If a user does not follow these safety rules and has noticed suspicious activity on their account, Luno has a backup solution.
The exchange provides a tool which allows users to lock their account.
“If you suspect that someone gained unauthorised access to your Luno account, you can temporarily suspend your account by locking it,” said Luno.
“You will see a link in notification emails from where you can lock your account.”
Locking your account disables the following features for seven days:
- Buying, selling or trading.
- Sending digital currency.
- Withdrawing local currency.
- Using the Luno Exchange or API.
Luno said its support team will not be able to unlock the account for you during this period, and that full functionality will be restored after seven days.
The exchange recommends that users use the seven-day lockdown to secure their account credentials.