A secure password is vital for making sure no one else can access your crypto. Storing your password safely is equally as important because without it you could lose your crypto. Data breaches are extremely common, especially in crypto. Understanding how to keep your password secure is the number one thing every crypto investor should know. This guide will outline how to manage your crypto accounts and ensure the protection of your assets. It will also cover the importance of creating strong passwords and explain how to store them safely.
Why are my passwords important when investing in crypto?
As the popularity of cryptocurrency increases, so too does cyber theft and crypto scams. The easiest targets for hackers are new crypto investors. That’s why it is imperative for crypto traders and investors to educate themselves and understand the importance of password security to avoid becoming a victim. Being aware of the dangers is vital to protecting your crypto. Having a strong password is the first line of defense.
With traditional financial systems, the trust of the currency is based on banks and governments. But because cryptocurrency is a decentralized system, the trust is based on the strength of the technology that each cryptocurrency uses. In the world of crypto, if your account is hacked you will lose your money and there is no third party to bail you out.
You can use websites like security.org to check the strength of your password by revealing how long it would take a computer to crack it. However, even if your password is resistant to computer hacking, that does not rule out a human gaining access to your online accounts.
Is my password secure?
Hackers have access to sophisticated hacking tools. There are many kinds of malicious software that is able to crack weak passwords very easily by using a brute force attack. The longer and more complex your password is the harder it will be for a hacker to gain access to your account.
Whether it be for an exchange or a wallet, your password should always be unique. Data breaches to third-party apps such as LinkedIn and Facebook compromise all shared passwords. Hackers can purchase this information from the dark web and use your email and password combination to try to break into your crypto exchange account or wallet. For this reason, it is highly recommended to delegate a separate email just for your crypto services that is different from your primary email account.
It is best practice to use separate email addresses for different types of accounts. For example, you could use Gmail to login into all of your social media accounts and other personal online services, and an encrypted mail service like Proton mail to access your crypto accounts. Using a different email to the one that you use for everything else will help keep your crypto safe.
Has my account been compromised?
If a company or business has suffered a data breach, it is possible your details may be leaked. This could result in your email or password being exposed to cybercriminals. HaveIBeenPwned is a well-respected website created by security expert, Troy Hunt, that allows you to check if your information has been compromised by data breaches. It does this through collecting information about billions of leaked accounts.
Tips for creating a secure password
If you want to create a strong password, make sure to apply these five key tips.
1. Make your password long and complex
Choosing a longer password makes it much harder to crack. Your password should contain a mixture of uppercase and lowercase letters as well as a combination of special characters and numbers. For example, a super-strong password would be something like $uperStrong72! According to security.org, this password would take a computer two hundred million years to crack. #BulletProof99! would take 15 billion years to crack. Now those are some secure passwords!
2. Do not include personal information in your password
Don’t use any dates, pet names, street names, or other personal information relevant to you that could be easily guessed. Hackers will target users whose information can be found online. If you use a weak password combination it makes their job pretty easy. For example, if you have posted photos of your adorable dog “Freckles” all over your Instagram page and your date of birth is publicly visible on your Facebook profile, it won’t take a genius to figure out your password might be Freckles92. For this reason, it is a good idea to update the security across all of your online profiles and set privacy settings to restrict sensitive information from being viewable by others.
3. Do not ever reuse the same password
It is important that you create unique passwords. Never use an old password that you have used before. We are all guilty of reusing passwords, but when it comes to your crypto exchange account you should ensure that you are using a unique password that is different from any you have used before.
4. Use a Two-Factor Authenticator
Enabling two-factor authentication (2FA) will make it almost impossible for someone else to log in to your account. It is always best to activate all of the security measures offered by the exchange you are using. Most exchanges will allow for 2FA to be turned on. Make sure to use an app-based 2FA instead of your email. Installing an authenticator app on your phone is the most secure option. Be wary of using SMS-based 2FA as this has failed to protect users.
5. Password Managers
Complex passwords increase your online security, but they also make it hard for us to remember them. This leads people to commit a cardinal sin: storing the password in a web browser such as Google Chrome.
Using a secure password manager application such as Lastpass is a good way to store passwords safely. This also comes with risk, however, as it is a single point of failure. Should someone gain access to your master password, they would have access to all your passwords and information. If you are going to use a password manager, only use a desktop version, rather than a cloud or browser-based one. Always ensure to create a strong master password for your password manager account and have 2FA set up on it.
Important To Remember
Malware can access your saved passwords stored in your web browser or on your computer. Next time that little pop-up asks you if you would like to save your password, don’t do it. You might become the victim of an attack.
How to change your password on Swyftx
On the desktop platform, navigate from the left-hand menu to the Profile tab > About > Change Password. From here enter your new password and save it. From the “Security” section you can enable 2FA as an extra security measure to protect your account.
On the mobile app, click the three horizontal lines on the top left of the app window and navigate to Profile > Security & passwords. You can then change your password under the “Login preferences” headings and you can enable 2FA under the “Security” heading.
This article has explained the importance of password security and given some key recommendations for how to keep your passwords safe to ensure the protection of your crypto. If you would like to learn more about safely storing crypto, blockchain technology, or anything else crypto-related, there is a range of informative guides, courses, and quizzes on Swyftx Learn.