Who doesn't want to protect their personal information and assets, whether we are big companies or people who have just started trading in cryptocurrency, because a small mistake can lead to an e-scam. In which your crypto transaction history or even your own personal information can be leaked. Today through this blog, we will give you some tips through which you can maintain the privacy of your personal information and assets. In this guide, we will cover key privacy tips to help you protect your identity and crypto assets in the blockchain world.
Not all cryptocurrencies offer the same security. Some blockchains, for example Bitcoin and Ethereum, show transactions but have no connection to your reality. That’s the way they’re built.
Consider the following:
Monero (XMR): Known for its great flexibility and privacy, it uses techniques like ring signatures and stealth addresses to keep transactions confidential.
Zcash (ZEC): Zcash encrypts transactions using zero-knowledge proofs (zk-SNARKs) to hide or secure data.
DASH (DASH): Dash maintains privacy through its PrivateSend technology.
* Avoid reusing addresses
Try to use a new address every time you transact with cryptocurrency. Reusing the same address can make it easier to track, so use wallets like Electrum (for Bitcoin) and Monero wallets that are capable of generating new addresses for transactions.
* Use a hardware wallet
Hardware wallets are considered to be the safest way to store crypto. Since your passwords are offline, it makes it extremely difficult for hackers to access your crypto wallet and secures your wallet. Hardware wallets like Ledger or Trezor protect your data from being transmitted online.
*Use VPN and Tor
Using them to transact online and access your wallet keeps your address private, thus increasing security. Additionally, Tor (The Onion Router) maintains privacy by routing your connection through nodes around the world, ensuring that your address and online activity are secure;
VPN: Encrypts your internet connection and hides your IP address.
Tor: Routes your traffic through a network of servers operated by volunteers, making it impossible to track your online activity.
*Be careful with KYC/AML compliance
Many crypto exchanges require customer ID and AML, which is legally required for some crypto exchanges, which can expose your privacy.
To minimize the risk:
Use decentralized exchanges (DEX) like Uniswap or SushiSwap, which do not require customer KYC.
If using centralized exchanges, share as little personal information as possible.
*Encrypt your wallet backup
Always keep a backup of your crypto wallet passwords/keys. If you store it on your computer, make sure that your computer is encrypted. Always choose strong passwords and store them in a hardware wallet or encrypted pendrive. Avoid storing data in cloud storage as it can be hacked.
*Avoid public Wi-Fi for crypto transactions
Using Wi-Fi networks in public places such as cafes, airports, railway stations, metros etc. can lead to tampering of your data. Hackers can intercept your sensitive data which is not good for you from a security point of view. If you use public Wi-Fi then make sure to use a VPN.
*Monitor your transactions with a blockchain explorer
You can monitor your transactions through an explorer like Blockchair or Etherscan. This will help you track unwanted activity in your wallet, and it is important to do so from a security point of view.
*Beware of phishing attacks
Phishing is a method in which a hacker can send you a fake email, a login page that looks similar to your wallet, a URL link asking you to login to your wallet or a link to a page similar to it. To avoid these, do not use any URL without checking it, especially for exchanges, wallets and DeFi platforms.
Enable two-factor authentication (2FA) wherever possible.
Never share your private keys with anyone even if it seems like a legitimate source
*Use a multi-signature wallet
Multi-signature (multi-sig) wallets are essential for making transactions. It adds a new layer of security that prevents loss of funds. Multi-sig wallets are especially useful for institutional investors and old holders.
* Limit your personal information on social media
You should not share your crypto currency and wallet related information on social media. Avoid sharing your information. Scammers and hackers use this data of yours, which can cause you financial loss along with your data.
*Understand the risks of blockchain surveillance
Blockchain analysis firms and law enforcement agencies are using the technology to trace cryptocurrency transactions, which is not good for your data security. Be aware of the changing landscape and consider maintaining and enhancing your privacy features when needed.
Conclusion
This is a challenging task in an increasingly surveilled digital landscape. However, you can take proactive steps to secure your data, such as using privacy-focused coins, encrypted wallets, and anonymization tools, which will enable you to maintain your privacy. Always stay informed about the latest privacy tools and best practices to stay one step ahead in securing your crypto assets.
Always Remember: Your privacy is in your hands, Protect it wisely!
Nice information