Don’t Let a Password Cost You Millions: A Lesson in Cryptocurrency

LastPass • PublishedJanuary 21, 2021

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Don’t Let a Password Cost You Millions: A Lesson in Cryptocurrency

Is jumping into cryptocurrencies one of your 2021 goals? Or, maybe you’re already invested, and you’ve been closely watching the rollercoaster over the past several months. Personal opinions aside, Bitcoin and other cryptocurrencies have become wildly popular in recent years, and many early investors have made fortunes. But, as a recent article in the New York Times highlights, for some investors, a simple forgotten password stands between them and their inaccessible fortunes. Unlike a traditional bank, a cryptocurrency wallet is encrypted by a private key that is only known by the wallet owner. There is no central service or company that can store or reset passwords. In some ways this is an appealing aspect of cryptocurrencies – it’s more accessible and outside the reach of governments. But if the wallet owner loses the key – whether because of a reformatted hard drive, a lost scrap of paper, or a faulty memory – there is no backup for them to regain access to the wallet. Whatever their wallet is worth, the money is lost. And as the article highlights, a staggering 20% of wallets are suspected to be lost or inaccessible.

Backup your keys

Before you go any further in your cryptocurrency venture, you need to safely store your private key or password. A password manager is an ideal spot to store your cryptocurrency key for several reasons:

It’s encrypted with your password manager’s master password
It’s backed up automatically
It’s accessible on any device where you log in to your password manager
It can be shared in an encrypted format with someone else

A password manager offers security and peace of mind. It also comes with additional security options like multifactor authentication and backup options like mobile account recovery ensure your cryptocurrency coins are safe while remaining within reach.

Keep an eye out for trouble

A lost password isn’t the only issue some cryptocurrency investors have faced. Some have fallen prey to breaches, wallet thefts, and other scams. Dark Web Monitoring in LastPass Premium will spot potential security issues for you. By notifying you when your personal information is at risk of being used by cybercriminals, you can proactively change passwords and lock down accounts. The Security Dashboard in LastPass Premium also gives you a complete picture into your password security. Eliminating reused passwords and using a generated password for every account reduces the risk of a hacked account and minimizes the potential damage if one is hacked.

Just one reason to try a password manager

If you’re buying and selling cryptocurrency, a password manager protects you from others and from yourself. Beyond cryptocurrencies, a password manager is just a smart way to start the new year. LastPass Premium can help you not only take control of your online security and be smarter about protecting your investments, but it can also remove the stress and hassle of passwords and account logins. A password manager puts it all safely at your fingertips.

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