What is Cryptocurrency?
Cryptocurrency is a program used to store your private and public keys, monitors their balance, receive and send digital currencies, and also interact with different blockchains. Whether you are using a mobile, hardware, or desktop wallet – your cryptocurrency wallet will always attract thieves, fraudsters, and scammers especially if you are keeping and transacting large amounts.
So, if you want to manage your crypto assets you will need a cryptocurrency wallet. In case you already have it, then you have to keep it secure because cryptocurrency wallet hacking is on the rise these days.
Top 8 Tips on How to Protect Your Crypto Wallet
Apart from where you choose to keep your private keys and cryptocurrency, you have to be aware of bad factors at the same time when using it. Many different scams happen with people in a cryptocurrency wallet. The most common type of scam is sim swapping.
A swim swap happens when you sign up with an exchange, so to keep your wallet secure from this swap you can add two-factor authentication as extra security to keep your account safe. If a hacker is trying to hack your cryptocurrency wallet through your information, he will also have to pass the two-factor authentication to log in to your cryptocurrency wallet. It is recommended to use two-factor authentication (2FA) to secure your account.
Here are some ways to protect your cryptocurrency wallet:
1. Safe Internet Connection
When you are making cryptocurrency transactions, always use a secure Wi-Fi connection and never use public Wi-Fi networks because public wallets have security issues and are vulnerable. Try using your hotspot when you are out and try not to use public internet at all costs to access your wallet.
Even if you are using it from your home, you can use a VPN for the additional security of your cryptocurrency. VPN changes your location and IP address which keeps your browsing activity private and safe from hackers.
2. Personal Device Security
The device you are using should be secure. You have to keep it secure with the latest virus applications to guard it against newly exposed vulnerabilities. Windows of a computer are exposed to a wide variety of malware, every operating system shares its malicious programs so you should check whether your PC has the latest and reliable anti-virus installed or not. Properly scan your device before installing your cryptocurrency wallet in it. You can use a strong firewall and anti-virus to improve the security of your device to avoid threat actors from taking the benefit of the weakness by writing any code to target the vulnerability of your device.
3. Use a Cold Wallet
Cold wallets are safer than hot wallets because they do not connect to the Wi-Fi itself and they are not prone to cyber-attacks from hackers. A cold wallet is also called a hardware wallet as you can keep your private keys in it and this is the most feasible option because they are encrypted providing utmost protection.
Online bitcoin exchange can get hacked and if that happens, you will lose the private keys which are stored in them. So, you should avoid keeping private keys with online exchanges. The best to get rid of this problem is using digital wallets. If you want to secure your account you should go for a cold wallet.
4. Create Multiple Wallets
You can easily make multiple accounts because there is no limit to wallet creation. Your cryptocurrency investments can be diversified in multiple wallets. One wallet can be used for transactions you make daily basis and you can keep the rest in another wallet. This will secure your portfolio and alleviate the loss of any violation of your crypto account.
5. Change Password Daily
When talking about security, we cannot ignore the importance of a strong password. So, make sure your password is complex. strong and is difficult to guess. Don’t use birth dates, phone numbers, favorite movies, or names as your passwords. Try to set an alphanumeric combination for your password that is not easy to guess.
Make sure to change the password every day. If you have multiple accounts, use a separate password for every account. Use multi-factor authentication or two-factor authentication for extra security.
6. Beware of Phished Scams
Malicious ads, emails, and phishing scams are increasing in the cryptocurrency world. So, you have to be careful when making transactions to avoid any unknown and suspicious links.
In a recent incident of cryptocurrency heist, some threat actors name “CryptoCore” targeted cryptocurrency exchanges through spear-phishing campaigns. The hackers stole cryptocurrency worth 200$ million in 2 years. They were targeting companies in the Japan and U.S since 2018. These wallets were hacked using fake domains impersonating organizations and employees and embedding suspicious links in documents through emails.
So, always be careful when you are online and also check the link of the website you are on if something feels weird. Hackers can duplicate the entire website and use almost the same URL addresses as the authentic ones.
If you are using an online wallet or the same service like this where you need to enter the private key, always verify the address of the website that it’s the authentic one or not.
7. Backup Your Wallet
The backup of your digital wallet will allow you to log into your wallet when you lost your device or your device fails. Choose a secure and different location for backup. If your device is stolen, you can easily restore access to your digital wallet with the backup file. You can transfer your funds to other wallets as a precaution.
8. Do Not Share Your Private Key
Most cryptocurrencies are kept in a digital wallet and those wallets can be accessed through private keys. There are some launchpad platforms online where you can make transactions and can trade cryptocurrencies. Most of these exchanges give the option of storing private keys and that offers good accessibility to the users of cryptocurrency wallets. It is a convenient feature but also increases the risk of hackers to a great extent. You can’t share your private keys with anyone. You can’t ask someone else to make transactions for you. Avoid all the requests or proposals that involve sharing your private key with a person or third party.
It is your responsibility to secure your crypto wallet. The cryptocurrency industry is growing and security systems are improving so you should look at all the necessary precautions for safety and try to stay up to date with all the latest security updates and improvements to keep your cryptocurrency wallet away from all hackers and third parties.