Cryptocurrency: complete virtuality requires complete security
One of the outstanding qualities of cryptocurrency is its complete virtuality. Unlike most other forms of currency, crypto has no physical embodiment. You can't get it as paper, as coin, a bar of gold or as a fancy piece of jewelry. There is no token that needs to be physically locked up in a bank vault or kept in the jar somewhere behind the cupboard.
However, like anything valuable, cryptocurrency needs to be protected. This article will tell you how we take care of the security of your assets and what measures you should take to make sure your account is not an easy target.
Lykke Trading Wallet
Most of our users keep their assets in Lykke Trading Wallet which is a hot wallet. A hot wallet is one that is connected to the internet. Generally speaking, hot wallets are easier to setup, easier to access, and they accept more tokens. To protect your assets in the Lykke Trading Wallet, we have implemented the following security measures:
- When entering your email and password, you also have to pass captcha to prove that you are a real person.
- You have to verify your phone number and email. Special codes are sent to the phone number and email linked to your account. That helps to ensure further that you are the rightful owner.
- Lykke is a centralized exchange, so security is a primary concern. Encrypted signatures for the hot wallet are located on a dedicated server.
- When you perform any transaction or trading, each operation has to be confirmed with PIN or fingerprint.
Lykke Private Wallet
If you prefer to store a large amount of crypto in your wallet for a long time, then we recommend that you transfer these assets to your Lykke Private Wallet. Recent versions of our Android and iOS wallet apps include the Lykke Private Wallet feature, which enables you to add other digital wallets to your Lykke Wallet. You can use the My Private Wallet wallet, which is generated from the private key of your trading wallet, or you can add any other external wallets in your possession.
There are three types of private wallets that we offer our users:
- Private. Choose this type if you need to create a new wallet to store your assets. You can transfer your crypto assets to your new private wallet using wallet address and/or QR-code. Also, you can deposit fiat using VC or Credit card.
- Existing. Select an existing wallet in case you already have digital assets and want to transfer these from an existing wallet to your Lykke wallet instead of adding the address via scanning QR-code or copy/paste.
Cold. Cold wallets are used to receive and save funds offline. A 12-word seed security code is required to spend or transfer funds from the cold wallet. This 12-word code is unique and, along with the raw key, can let you access the cold wallet. Keep your 12-word seed in a secure place. If you lose it, you will not be able to regain access to your funds. Cold wallets are available for iOS only.
Easy security tips for safeguarding your assets
You can also ensure the security of your assets by sticking to the easy but very essential rules.
The following tips can be used as a security guide to secure the safety of your holdings:
- Securing your software wallet is similar to protecting any data on your computer or mobile device. You have to be a little more paranoid while browsing the Internet, clicking on links and email attachments.
- Use two-factor authentification. Set up Google Authenticator to verify your login.
- Do create backups. Kept in a secure place, a backup of your cryptocurrency wallet may save you from hardware failures and a lot of human slip-ups. It will also let you restore your wallet in case your PC or phone gets stolen.
- Although passwords and encryption can protect from hackers, it is not able to put a stop to key-loggers or another malware. It is important to install and keep up-to-date leading antivirus and antimalware solutions. Many of these are free to use.
- Prior to creating an account on Lykke, set up a new email box that you will be using for the Lykke account.
- Be sure to choose a difficult and lengthy password, desirably a passphrase. Write it down on paper and store that piece of paper in a secret place.
- Turn on two-factor-authorization not only for login but for any transactions that take place.
- Generate, write down and hide your wallet's 12 words seed. The 12-word seed is a group of words you can use to restore your wallet in the event of a hardware failure.
- The safest way to store passwords and private keys is to print them out, delete them from your computer, and lock away the hard copies. When malware attacks computers, private keys are often the first things that are searched for.
Security plays an integral role in the cryptocurrency world. As a result, it is the direct responsibility of Lykke to provide and improve the security level of our exchange. This is a responsibility that Lykke takes seriously. Combined with a conscientious approach to storing your assets by following all preventative measures noted above, your assets will always be reliably protected.