Privacy Guide For Cryptocurrency Users

Learn about protecting your privacy in the crypto space.

Since the inception of Bitcoin in early 2009, cryptocurrencies have skyrocketed in popularity across the globe attracting users and investors for a myriad of reasons. Some cryptocurrencies, like Bitcoin for example, act as an investment vehicle and the promise of a decentralized user-centric banking system while others cryptocurrencies are built on innovative network technology that promises lightning fast transaction capabilities. Whatever the case, the popularity of crypto has exploded seemingly overnight and the fundamental technology of crypto is undoubtedly here to stay.However, while cryptocurrency promises unparalleled financial innovation, the crypto markets are still in their infancy, meaning that you as the owner of crypto must do your due diligence in keeping crypto protected and private.In the following guide, we’ll look at the most useful strategies to help keep your crypto private and secure, ensuring you keep your assets where they should be, with you!

Selecting The Right Crypto Wallet For You

A crypto wallet is simply a digital storage system designed to hold cryptocurrency. These digital wallets work by locking and unlocking these valuable cryptocurrency assets via a public and private key encryption. As a simple overview of this key design, a public key acts as the public address for your crypto wallet. This is the public address users can use to find you and pay you cryptocurrency. A private key, on the other hand, unlocks your unique crypto wallet, so anyone who gains access to your private wallet key can steal your digital assets.As you select your wallet, you’ll want to understand the level of protection this wallet offers as well as whether this wallet is a Non-custodial or Custodial wallet.

Non-Custodial

A non-custodial wallet is a type of crypto currency wallet where you manage the wallet, your public key and private key yourself. Here, you have full control over the protection of your private key, so be careful!

Custodial

A custodial wallet is a third-party service wallet like Coinbase, or Gemini that manages your private keys so you don’t have to.
While private key management may be best suited for a physical wallet, if you do happen to store your private key on your computer, or send it via email, you should strongly consider end-to-end encrypted mail or end-to-end encrypted file storage.

Skiff and Metamask Secure Login

For those using MetaMask, Skiff has recently released an exciting integration. Using your email address and associated password has been the longstanding default process for login, until now. Individuals who use MetaMask and have the MetaMask extension, can log into Skiff with their MetaMask wallet.With the emergence of Web3 and the continued decentralization of the internet, leveraging MetaMask as a secure login, paired with the power of end-to-end encryption offered by Skiff delivers a superior level of anonymity, privacy and security.This MetaMask login integration acts as a first step in Skiff’s commitment to secure use of Web3 and the decentralized internet. New features are right around the corner that ensure private, decentralized collaboration remains seamlessly accessible in an easy and intuitive manner.

Consider Where Your Sensitive Data Resides

At the end of the day, the management of your wallet (and especially your wallet’s private key) is paramount in keeping your crypto assets secure. As noted previously, wherever your sensitive data resides, you should consider how vulnerable that storage platform is. For example, are you emailing sensitive crypto information? Maybe emailing your crypto private key to yourself to act as an “offline backup”. Although creating copies of your key in a safe and deliberate manner is important, understanding some of the subtitles of private key transmission are critical in keeping this sensitive data private.
Here, end-to-end encrypted email can be incredibly valuable. Without end-to-end encryption protection, malicious fraudsters who gain access in your email transmission may very well gain access to unsecured data in transit, i.e. access to your crypto private key while you email it or keep it in your inbox. This, sadly, is one of the more common crypto hacking strategies that hackers use to steal cryptocurrency.

Avoid Unencrypted/Public WiFi

Building off the topic addressed in the previous section, it should go without saying that managing your sensitive crypto data on an unsecured WiFi is asking for trouble.
If you’re using public WiFi at a local coffee shop, you should strongly consider the associated risk. Today, many hackers stage attacks on victims through public Wi-Fi, by orchestrating what’s called a man-in-the-middle attack. Here, an attacker eavesdrops on your connection to the public internet via the public WiFi access allowing them to see any data transmitted to and from your computer on this public network. We strongly caution sending or managing sensitive crypto data in this type of a public setting.

Use Multiple Wallets for Different Use Cases

When considering a strategy to manage crypto in a way that maximizes privacy and security, it’s smart to mirror some of the common strategies we see in personal banking today. Commonly, users will use a checking account and savings account correct? This offers a bifurcation of accounts, and an added level of protection (i.e. if someone steals your checking debit card, it’s unlikely they can access your savings).We suggest using this same model when managing your crypto. For instance, if you plan on using a certain amount of crypto for trading/purchasing purposes, this nominal amount can be kept in one crypto wallet known as a “hot wallet”. Any and all funds that aren’t needed for immediate transactions can then be stored in a separate cold wallet, that is less accessible. This bifurcation of wallets limits a hacker’s ability to gain access to your larger sum of crypto protected in your cold wallet. Although, of course, it’s smart to follow all of the privacy and security measures mentioned in this blog for the “hot wallet” to limit your overall exposure.

Keep your Crypto Offline

Backing up your crypto and taking it offline is one of the most valuable strategies one can implement to keep their crypto private and secure. Using a cold wallet, such as a USB-based crypto wallet, where crypto is stored then physically removed acts a phenomenal safeguard against today’s malicious crypto thieves. This process is known as “air gapping” an approach where no digital connection can be made to the sensitive media, disallowing cybercriminals to access the sensitive material.

Consider Skiff

Skiff offers private end-to-end encrypted emails. With Skiff, you can email, share notes, and upload files easily with the confidence that your sensitive information is private and secure.If you’d like to see how Skiff can keep your sensitive data private and secure, consider exploring Skiff via our free trial.