How to Keep Your Online Assets Safe in 2024

By Oskar Rutten, founder and CEO at Zuna

Over the last decade, digital assets like cryptocurrency and non-fungible tokens (NFTs) have emerged as new means of investment and wealth. 

In fact, data from the past 12 months shows that almost one third of Australians own or have owned cryptocurrency.

Cryptocurrency is a form of currency, not typically issued by governments, that only exists online and can be exchanged for goods, services or physical currency. It includes the likes of Bitcoin and Ethereum. 

NFTs use similar technology to cryptocurrency and are virtual tokens that represent the ownership of a one-of-a-kind asset, like an artwork. Because they are non-fungible, they cannot be duplicated or exchanged and belong only to their owner.

Whether you already have digital assets or are considering investing in them, here are some of the best security measures you can take.

Stay alert  

Even though Bitcoin has been around since 2009, the digital asset landscape can seem like the Wild West. Regulators are still playing catch-up, which makes it the perfect playground for scammers and fraudsters.

A notable example from last year was the Fintoch ‘rug pull’ scam, where people were conned into investing in a new cryptocurrency project.

Scammers went on to steal almost US$32 million, abandoning the project at the last moment and leaving millions of victims high and dry.

We all know that with high reward comes high risk. Always be aware that you are placing yourself (and your money) into an under-regulated, volatile market.  

Get physical  

To keep your assets out of reach, I recommend using a physical (cold) wallet. Cold wallets are safer because they are offline and therefore not vulnerable to cyberattacks.

It’s best to keep large amounts of cryptocurrency and blue-chip NFTs locked away in a cold wallet. Some may even go as far as to lock their cold wallets away in a safety deposit box.

Also known as physical hardware tokens, examples of cold wallets are the Ledger Nano S Plus and Trezor Model One.

Experienced users diversify so they can conveniently access their assets for buying, selling and trading, via a digital (hot) wallet. The most popular options include SafePal and Exodus.

Be aware that hot wallets are most susceptible to hacking and other cyberattacks because they rely on the internet.

Keep it on lock

All types of wallets are protected by distinct private and public keys.

A private key is a combination of characters, often with hundreds of digits, that is used to unlock your wallet. If you lose your private key, you also lose access to your wallet, so be sure to back it up in a safe place, preferably offline.  

With a public key, you can only view your balance. There’s no option to verify the ownership of your assets, which again reinforces the need to keep your private key safe.

Multi-factor authentication (MFA)

To prevent unauthorised access to your wallets, you should activate MFA.

MFA requires you to provide a combination of authentication factors – more than just a passphrase. For further security, it may also use your biometric data (like your fingerprint or face ID).

Whether you’re a seasoned investor or new to the world of digital assets, here’s how to keep your cryptocurrencies and NFTs safe:

• Activate MFA (because it isn’t always there by default) 
• Don’t share access information like passwords or passphrases with anyone 
• If you don’t access your cryptocurrency or NFTs often, use a cold wallet 
• If you are constantly moving your assets around, ensure your hot wallet is protected by MFA and the private key is backed up
• Always verify the integrity of trading platforms and new projects (the owners, what compliance they have and market verification)
• Never connect or verify transactions you aren’t sure about

Oskar Rutten is a financial technology and cybersecurity expert who empowers businesses across Australia and globally, to embrace the digital revolution with confidence. As the founder and CEO of Zuna, Oskar helps businesses streamline their processes through digitisation in a bid to help them achieve sustainable growth and maximise success. 

Want more? Click here for How to Stay Safe on the Internet in 2024

Zachary Skinner

Zachary Skinner is the editor of TechDrivePlay.com, where tech, cars and adventure share the fast lane.
A former snowboarding pro and programmer, he brings both creative flair and technical know-how to his reviews. From high-performance cars to clever gadgets, he explores how innovation shapes the way we move, connect and live.