Ensuring Cryptocurrency Security: Essential Practices
Comprehensive guide to protecting your digital assets from common threats and implementing robust security protocols for long-term protection.
Read ArticleSecurity Tips & Resources
Expert advice on protecting your digital assets from our security professionals
Fundamental Security Principles
Core concepts to understand before implementing any security strategy
Private Key Ownership
The fundamental principle of cryptocurrency security is captured in the phrase "not your keys, not your coins." When you store assets on exchanges or online wallets, you're trusting third parties with your keys. True security comes from maintaining exclusive control over your private keys.
Defense in Depth
Implement multiple layers of security rather than relying on a single protection method. This might include hardware devices, strong passwords, two-factor authentication, and proper backup strategies. If one layer is compromised, others remain intact.
Physical Security
Digital assets require physical protection too. Store hardware devices in secure locations, protect backup seeds from theft, fire, and water damage, and be mindful of physical attacks like shoulder surfing when entering passwords or PINs.
Privacy Practices
Maintain operational security by limiting what you share about your holdings. Avoid discussing specific amounts or security measures in public forums or social media. Targeted attacks often begin with information gathered from public sources.
Expert Security Articles
In-depth guides from our security professionals
Common Mistakes in Private Key Storage
Learn about the most frequent errors people make when securing their private keys and how to avoid these potentially costly mistakes.
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The Evolution of Hardware Wallets
Explore how hardware security solutions have evolved to meet modern threats and what the future holds for cryptocurrency key protection.
Read ArticleQuick Security Tips
Practical advice you can implement today
01
Never store your recovery seed digitally
Avoid taking photos, storing in cloud services, or keeping digital copies of your recovery seed. Always write it down on durable materials and store in secure, offline locations.
02
Verify recipient addresses multiple times
Always double-check the first and last characters of destination addresses when sending cryptocurrency. Better yet, use hardware wallet verification to confirm the entire address.
03
Keep software updated
Regularly update your hardware wallet firmware, computer operating system, and wallet software to protect against known vulnerabilities.
04
Use passphrase protection
Add an extra layer of security by using the optional passphrase feature (sometimes called the "25th word") with your recovery seed.
05
Test recovery procedures
Before storing significant assets, practice the recovery process to ensure you can regain access if your device is lost or damaged.
06
Consider multi-signature setups
For substantial holdings, implement multi-signature wallets requiring multiple devices to authorize transactions, preventing single points of failure.
Security FAQ
Answers to common security questions
What should I do if I suspect my device has been tampered with?
If you notice any signs of physical tampering with your device, do not enter your PIN or connect it to your computer. Nxpqx devices have tamper-evident design elements that should make any interference noticeable. Contact our security team immediately, and prepare to move your assets to a new device using your recovery seed (which should be stored securely elsewhere). Never use a device you suspect has been compromised.
How should I store my recovery seed?
Your recovery seed should be written down (never stored digitally) on durable material like metal seed storage plates that resist fire and water damage. Store it in a secure location such as a home safe or bank safety deposit box. For critical security, consider splitting your seed using Shamir's Secret Sharing scheme and storing portions in multiple secure locations. Never share your complete seed with anyone, and be wary of any service asking for it.
Are hardware wallets completely immune to hacking?
No security solution is absolutely impenetrable, but hardware wallets provide significantly stronger protection than software wallets. Nxpqx devices use a secure element chip that's designed to resist sophisticated physical attacks and prevent private key extraction. The main vulnerabilities come from human factors: phishing attacks targeting recovery seeds, compromised computers that might alter transaction details, or poor physical security of the device and backup. By following proper security protocols, these risks can be minimized.
Should I use the same hardware wallet for all my cryptocurrency?
For substantial holdings, we recommend a segregated approach. Consider using different devices (or at minimum different accounts) for various purposes: one for long-term storage (cold storage), another for regular transactions, and possibly a third with smaller amounts for daily use. This compartmentalization limits potential losses if any single device or account is compromised. For enterprise users, our multi-signature solutions add another layer of security by requiring multiple devices to authorize significant transactions.