5 ways to keep cryptocurrency safe when spending online

For all of the advancements cryptocurrency has brought to the world of digital finance and fintech, it can be a minefield, especially from a security perspective. Unfortunately, many scammers are out there looking to take advantage of how ubiquitous digital assets have become, especially on websites like X, formerly known as Twitter. Today, we will give you five ways to keep your crypto safe when spending online.

#1 – Investing through companies 

As cryptocurrency permeates mainstream finance, millions more investors and traders are exposed to the asset. In previous bull runs in 2013, 2017 and 2021, there was a clear separation between cryptocurrency, digital assets and traditional financial instruments. 

One thing that put people off was that they couldn’t invest through traditional mediums or invest in assets through packaged financial tools – they had to have total exposure to them on exchanges. 

Although 2021 did highlight that big financial institutions were gearing up to invest, it wasn’t until early 2024 that we saw the widespread involvement of huge asset management companies launching ETFs and other products to allow high-net-worth individuals access to the market. 

By offering ETFs, big investment companies allow investors access to the market through their portfolios. If they have any issues or anything goes wrong, they have a point of contact at these globally recognised firms, rather than dealing with unknown exchanges that don’t always have an extensive, proven, secure reputation.

#2 – Use reputable providers

Dozens of merchants online now accept cryptocurrency payments, but again, just as you would with a traditional payment method such as Visa or PayPal, do your homework to ensure that the company you’re connecting your cryptocurrency wallet to has a solid reputation. 

Casino gaming is one area where cryptocurrency has thrived, as it’s one of the first genuine alternative payment methods that has highlighted its potential. Again, knowing which sites are reputable is essential, as unlike traditional providers where you’ll need to enter your details manually, the transaction is done within a few seconds – as soon as you connect your wallet to a provider and send funds. 

Online casino experts at Irishluck.ie provide more detail about the criteria that warrant the reputation of a suitable crypto casino, one you can trust to handle your payments effectively and securely. 

#3 – Keep your seed phrase and wallet keys safe

Keeping your seed phrase and wallet keys safe is paramount if you use a cryptocurrency wallet. They’re akin to your online banking password, which you should never give out to anybody. If you lose access to your cryptocurrency wallet, ensuring you keep hold of your seed phrase will allow you to regain access. 

Many cryptocurrency wallets, such as MetaMask and Solana, will ask you to set up a password to gain quick access on your laptop or smartphone. As with online banking, you must set up strong passwords. But, in the event you forget these, your seed phrase will allow you back in. 

However, hackers will aim to get this information from you. This is a type of scam often seen on social media platforms such as Telegram, Discord and X, where hackers will try to phish for this information, usually promising tokens or cryptocurrency payments in return. Never give this out to anyone. 

Cybersecurity experts often recommend using password managers or coding passwords in writing rather than storing them on your laptop or phone, in case those devices are compromised. Although blockchain helps mitigate fraud risks, keeping your personal wallet information safe and private is still your responsibility. 

#4 – Set up two-factor authentication (2FA)

Two-factor authentication is another way to verify your login. In the event somebody gets hold of your cryptocurrency wallet password, 2FA will notify you if there’s been a suspicious login, and allow you to verify it. If you don’t recognise it, you can change your details immediately. 

#5 – Cold wallet storage

If you’re looking to use your cryptocurrency sporadically and don’t want to keep it in a centralised wallet or on an exchange, then a cold wallet is the way to go. There are many different types of cold wallets. 

Given that they take your cryptocurrency’s private keys off the internet and away from interconnected devices, they significantly minimise the risk. We appreciate that if you’re looking to spend online, then you need to connect your cold wallet and access your funds, but if you’re only spending a bit of your crypto and want to keep the rest as a long-term investment, then cold wallets are the best idea to keep it safe. 

Summary

Treating your cryptocurrency as you would your other financial accounts is probably the best bit of advice we can give you. Don’t hand out any sensitive details or passwords, and ensure you’re using legitimate providers. 

Set up biometric ID, 2FA and other security layers to protect your digital assets as much as possible. If you’re looking to keep hold of your Bitcoin or altcoins for a long time, then keeping them offline in a cold wallet means they’re likely to stay away from the eyes of prying criminals online.