Fundamentals of Crypto OpSec
Let’s start with a little definition.
Opsec is a term coming from the military, meaning operational security. It has been widely used to describe security precautions in various grey-zone or illegal activities, and more recently also in cryptocurrency management.
It is not because owning cryptocurrency would imply illegal activities, but because cryptocurrency is non-regulated storage of wealth that critically depends on how well an investor protects their own digital asset instead of outsourcing the protection to an institution.
Crypto OpSec Fundamentals
Good opsec in crypto is boring.
You know what you are supposed to do, it is not super practical, the odds of getting hacked seem super low, we are in a bear market anyway, who cares. Right?
Wouldn’t it be funny if for most people their cryptocurrency endeavor ended up failing not because of quantum computers, criminalization of cryptocurrencies or unforeseen vulnerability - but because of their own unwillingness to be their own bank?
There is a way through the boring maze of good opsec in crypto, though.
It needs to become your habit.
Long-term holding has its own security risks
If you are a crypto trader, you probably move your coins quite a lot. It might seem counterintuitive, but that puts you in a better position than long-term holders usually find themselves at.
Moving your crypto regularly forces you to keep your software up-to-date, to keep your hardware wallet’s firmware at the latest version, and to remember your passwords.
Longterm holders sometimes don’t access their wallets for years at a time: In a tech segment that evolves as fast as crypto, that’s not a good idea. But even if crypto was technologically completely mature: If you never work with it, you never give yourself chance to form the habit of it.
What are you waiting for? For the absolute majority of cryptocurrency investors, there won’t ever be any institution taking care about their holdings. This type of service might make sense for institutional investors who need legally enforceable services to fulfill regulations, and who can actually afford to sue.
If you are an individual who owns crypto, it really is time to wake up from your middle class slumber. The twentieth century is long gone.