What are the best practices for setting up cold storage for crypto assets?

1 answers

• B ZJan 02, 2021 · 5 years ago
  At BYDFi, we recommend following these best practices for setting up cold storage for your crypto assets. First, choose a hardware wallet from a reputable manufacturer. Hardware wallets provide an offline storage solution for your private keys, ensuring they are not exposed to potential online threats. Second, create a strong and unique password for your hardware wallet. Avoid using common passwords or easily guessable phrases. Consider using a password manager to securely store and generate strong passwords. Third, regularly update the firmware of your hardware wallet. Manufacturers often release firmware updates to address security vulnerabilities and improve overall performance. Fourth, keep your recovery phrase offline and in a secure location. This recovery phrase is essential for recovering your crypto assets in case your hardware wallet is lost or damaged. Lastly, be cautious of phishing attempts and never share your private keys or recovery phrase with anyone. Keep your cold storage setup confidential and regularly monitor your accounts for any suspicious activity. Following these best practices will help ensure the security and protection of your crypto assets in cold storage.
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