Protecting Your Bitcoin, Ethereum, and Cryptocurrency Investments
As a trusted Canadian cryptocurrency trading platform, NDAX provides robust security measures to protect your account. However, true cryptocurrency security extends far beyond your exchange login credentials. While NDAX implements industry-standard security protocols, the most secure method for long-term cryptocurrency storage involves moving your assets offline through cold storage solutions.
This comprehensive guide explores how to enhance your NDAX security setup by implementing cold storage strategies that protect your Bitcoin, Ethereum, and other digital assets from online threats, exchange vulnerabilities, and unauthorized access.
Cold storage refers to keeping cryptocurrency completely offline, disconnected from the internet. This method provides the highest level of security against hackers, malware, and online vulnerabilities that can compromise hot wallets (internet-connected wallets) and exchange accounts.
Cold storage devices cannot be hacked remotely since they never connect to the internet, providing absolute protection against online attacks.
You maintain complete control over your private keys rather than entrusting them to third parties like exchanges.
Ideal for safeguarding large cryptocurrency holdings that you don't need to access frequently.
Hardware wallets are physical devices specifically designed to securely store cryptocurrency private keys offline. These devices represent the pinnacle of crypto security for individual investors and represent an essential component of any comprehensive NDAX security strategy.
When you transfer cryptocurrencies from your NDAX account to a hardware wallet, you're moving your assets from NDAX's custody to your own personal custody. The process involves:
Follow this step-by-step approach to secure your cryptocurrency investments:
Choose from established brands like Ledger, Trezor, or Coldcard that have proven track records in security. Research each option to determine which best fits your needs and supported cryptocurrencies.
Set up your device in a private environment, carefully documenting your recovery seed phrase on the provided materials. Never digitalize this phrase or store it in cloud services.
After your NDAX login, navigate to the withdrawal section, select the cryptocurrency you wish to secure, and send a test transaction first. Once confirmed, transfer the remaining balance to your hardware wallet address.
For significant holdings, consider a multi-signature configuration that requires multiple devices or approvals to authorize transactions, providing additional security layers.
Secure Your Assets on NDAXWhile NDAX implements strong security measures including cold storage for most assets, exchange wallets are still considered "hot wallets" and carry inherent risks. For significant holdings or long-term storage, moving assets to your own cold storage is recommended.
When crypto is on NDAX, the exchange controls the private keys. With a hardware wallet, you control the private keys, eliminating counterparty risk and providing absolute ownership of your assets.
Yes, though it requires an extra step. You would transfer funds from your cold wallet back to your NDAX account when you want to trade, then return them to cold storage afterward. This process adds security but slightly reduces convenience.
A common strategy is to keep only the amount you plan to trade actively on exchanges (5-15% of holdings) and secure the remainder in cold storage. Adjust this ratio based on your trading frequency and security preferences.
Your crypto remains safe as long as you have your recovery seed phrase. You can restore your wallet on a new device using this phrase. This highlights the critical importance of securing your recovery phrase separately from your hardware wallet.
Most major hardware wallets support Bitcoin, Ethereum, and other prominent cryptocurrencies available on NDAX. Always verify compatibility with your specific assets before purchasing a hardware wallet.