The popularity of cryptocurrency means that it is attractive to investors, but also to cybercriminals. Ever since crypto burst on to the scene just over a decade ago, there have been plenty of reports regarding heists and hacks on crypto wallets and exchanges. A crypto wallet will not store digital coins, but instead it provides you with a key that you can use to indulge in online transactions. Anyone who gains access to this key can steal your hard-earned crypto or even execute fraudulent transactions.
In this blog, we will be discussing a few ways that you can use to ensure the safety of your cryptocurrency:
1) Utilizing old Wallets:
Cold wallets, unlike their ‘hot’ counterparts, are not linked with the internet and are therefore less vulnerable to cyber-attacks. Hence, using a cold wallet for storing keys is an excellent option since the encryption of these wallets will help you keep your key safe.
Back in 2019, a Japanese exchange named BITpoint lost $32 million worth of crypto from its hot wallet, affecting over 50,000 users of the exchange. BITpoint reported that, despite the unauthorized withdrawals from their hot wallets, the cold wallets remained unaffected. For more information regarding bitcoin trading, you can visit Bitcoin World Capital.
2) Using Secure Internet Connections:
While performing crypto transactions or trades, steer clear of public WiFi or other unsecure internet connections. Even if you are using your personal network, we recommend using a VPN for enhanced security. With a VPN, you can alter your location and IP address, thereby securing browsing activity and maintaining privacy.
3) Having Multiple Wallets:
Remember that there is no restriction on the number of wallets you can own, and you should take advantage of this freedom by keeping your crypto in more than one wallet. It is good idea to dedicate one wallet to daily transactions and maintain the remainder of your currency in a different wallet. This way, you can safeguard your portfolio, thereby reducing the chances of any losses or account breaches.
4) Securing Personal Devices:
You need to make sure that all your personal devices are armed with the most up-to-date anti-viruses that will help them stay protected against all kinds of vulnerabilities. Alongside a robust anti-virus, you should also use a firewall to enhance security. These measures will make it harder for potential hackers to exploit your device’s vulnerability by preparing codes.
5) Frequently Changing Passwords:
No blog on security can be complete without a strong emphasis on having strong passwords and changing them regularly. There was a study that revealed that almost 75% US millennials have the same password for all of their accounts, apps, and devices. Furthermore, the same study stated that most of those 75% used that very password in more than 50 places. This is extremely dangerous behavior, and can leave you open to massive losses and breaches. Always ensure that your password is sufficiently complex and strong, not easy to guess, and is being changed regularly. If you own more than one wallet, have a separate password for each one. For enhanced security, go for MFA (multi-factor authentication) or 2FA (two-factor authentication).
6) Steering clear of phishing:
Phishing scams in the form of malicious emails and ads are very common in the crypto universe. Therefore, you need to be extremely cautious during cryptocurrency transactions and avoid visiting any unknown or suspicious links.
The world of crypto continues to grow and evolve – unfortunately, the same is true for crypto-related scams, breaches, and hacks. Make sure that you are leaving no stone unturned in ensuring the security of your digital money. Keep yourself updated regarding the latest attack techniques, prevention tactics, and security-related news.