No doubt crypto has made its place in the digital world due to its efficiencies, but cryptocurrency security is still a question. More and more people are relying on digital currencies and taking them as an alternative for managing a personal and organizational budget. With the increase in stakes, there is a need to take immediate security measures.
Cryptocurrencies have made transactions easier and reliable, cutting off the central authority to minimize processing fees. Still, cryptocurrency balances are in danger owing to computer crashes, hacks, or unexpected events.
It is the responsibility of organizations holding crypto to make sure all the necessary precautions to secure transactions fulfilling Crypto Security Standards. Let’s have an overview of some areas you should consider while securing all the information related to transactions of cryptocurrencies like Bitcoin, Ethers or Litecoin, etc.
Cryptocurrency Security: 5 Ways to Keep Crypto Safe
1.Secure Key Generation
To ensure cryptocurrency security, the system should create secure cryptographic keys and seeds. If you want to improve your organizational security measures, you should pay close attention to confidential and unguessable keys. Confidentially means that new keys or seeds are not accessible to any unintended party. The difficult-to-guess numbers protect key holders from hackers.
2.Safe Usage of Wallets and Keys
It is essential to monitor and maintain the usage integrity of wallets or keys. To avoid risks like stolen keys, unintentional disclosure of wallet identity following practices are very fruitful
- Generate a unique address against each transaction
- Demand minimum 2 signatures to spend wallet funds
- Promote usage of keys and seeds in a trusted environment
- references and background of all wallet or key holders
- Assign additional key for the recovery process
Where an organization needs to control access to improve cryptocurrency security, the keyholders should undergo training to understand rules and procedures. Must revoke privileges if any employee leaves the organization to make the system secure.
3.Protected Key Storage
Similarly, as you’d cautiously protect the key to a bank wallet, organizations should offer high-level security to their crypto keys. There are multiple options available, like encryption and secret sharing, that organizations can use to enhance cryptocurrency security. Organizations should also store backup keys or seeds securely to protect against criminal activities.
Every crypto organization has experienced and technically well-equipped people who build and maintain organizational information. But it is not enough because there is a need to ensure every bit of code to making the system secure. So, many companies hire experts to identify system vulnerabilities, upcoming risks and overcome system flaws
Crypto Organizations should have comprehensive policies to enhance cryptocurrency securities. The absolute process to detect key holder actions, cryptographic events will reduce risks. As an organization, you need to make a data sanitization policy, educate your staff about the risks that can arise after deleting data on digital media.
OptimusFox, Your Crypto Security Partner
OptimusFox, as a superior blockchain development company, knows the complexities for organizations holding cryptocurrencies. We offer wallet and key development services with enhanced severity and enforced policies and identify data using blockchain data authentication mechanisms. Let’s take cryptocurrency security to the next level.