Digital Tokens are software-made virtual tokens with varying utilities. The biggest and most famous example of a digital token is Bitcoin which is created by a mining process and holds a value that can be used for payment, investment or trading. In today's digitalised world, digital tokens have taken over and entered the mainstream. Multiple reasons can be marked for this growth, and safety stays at the top of the list. The level of safety and security that different digital tokens offer has made them trustworthy and has drawn hundreds of new players to the market. While these tokens are designed with a safe system, there must be knowledge of the fact that hackers are making their way through these solid systems as well. While the rate of hacking stays low with digital tokens, it is always a wise choice to ensure extra security. Follow steps as seen on bitcodemethods.com for staying at par with the changing market trends and never miss a chance to upgrade for the better.
A few proven and recommended methods can help you safeguard your digital tokens.
1)Security token- Security tokens are designed to make authentication stronger. The simplest way to understand the working of a security token is that it requires separate authentication every time an access attempt is made. While passwords and credentials protect your tokens, security token serves as an additional shield against hackers or infringers. A security token is an advanced protection system that twists the access every time and makes it nearly impossible for the hacker to find a pattern. Different types of security tokens include OTPs (Time Password), contactless tokens, connected and disconnected tokens and programmable tokens. Special software and applications are available to help you create a more robust security token for your assets.
2)Cold Wallet- Your digital tokens are stored in digital wallets that can only be accessed using your password/private key. There are hundreds of digital wallets on the network, and it makes a huge difference in safety and access. Unlike other digital wallets, cold wallets are not stored virtually. These mini USB-like devices store all your tokens, and since it is only sometimes connected to the network, it is doubtful to be compromised. These hardware wallets have a private key and protect against theft and hacks.
3)Hybrid Strategy- Just like it is advised to diversify your investment for protection against complete losses, going with a hybrid strategy for security is also a wise choice. While you can secure your digital tokens in both online and offline modes, you must fully utilise them. There are different digital wallets available with different safety features. You can always go for inter-wallet diversification. In addition, with a well-researched plan, you can choose solid cold storage for your security tokens. Even under unfortunate events, you are protected from losing all your tokens at once.
4)Private key- No matter which method you use for securing your digital token, you will have a private key/password for access. Study shows ghost wallets with million-dollar value on the network simply because the owner forgot the credential. It is, therefore, of utmost importance that you keep track of your credentials, especially when going for the hybrid strategy. In addition, owners often make the mistake of sharing their private key, which should not be the case even during an urgency. Your private key should be confidential, and you must not trust any person with it.
5)Secure network– The digital market is the next big thing, and therefore risks attached to it have also increased. Owners getting "phished" is not a new concept. The simplest way to avoid this is by always sticking to a secure network while making any transaction on the digital network. Going for public WiFi is a mistake you should avoid at all costs, and even with your home network, stick to VPN for additional security. Clicking on quick transactional methods can result in unimaginable losses, therefore, act smart and avoid these phishing websites and software.
