8 tips to prevent your cryptocurrency from being hacked
You can prevent hackers from accessing your wallet if you take the necessary precautions. To prevent criminals from accessing your cryptocurrency from these hackers, you need to understand how your wallet’s security can be breached. This article outlines the top eight crypto security best practices to prevent cybercriminals from accessing your cryptocurrency wallet.
However, first let’s discuss why hackers are targeting Cryptocurrencies.
Why are hackers targeting cryptocurrencies?
The crypto industry has grown significantly over the years, attracting both crypto investors and cybercriminals seeking access to the wallets of crypto enthusiasts. With the advancement of malware technologies, cybercriminals now have numerous methods to gain access to someone’s wallet.
You can prevent hackers from accessing your wallet if you take the necessary precautions. To prevent criminals from accessing your cryptocurrency portfolio, you need to understand how your wallet’s security can be breached. This article outlines the top eight crypto security best practices to prevent cybercriminals from accessing your cryptocurrency wallet.
However, first let’s list the top reasons why hackers target Cryptocurrencies.
Anonymity
Financial advantage
Permanent transactions
ICOs – Initial Coin Offerings.
Exploiting vulnerabilities in cryptocurrency security
Smart Contract Vulnerabilities
Lack of governance
While hackers are targeting cryptocurrencies, the security measures implemented by reputable platforms, individuals and the wider cryptocurrency community continue to improve over time. Nevertheless, cryptocurrency consumers should remain vigilant and proactively protect their digital assets.
How Do Hackers Compromise Your Crypto Wallet?
Understanding how wallet security is breached can help you implement cryptosecurity best practices that prevent criminals from accessing your wallet. The security of your crypto wallet can be compromised in the following ways, allowing hackers to gain access:
Phishing
Malware
SMS verification compromised
Theft of secret keys
Phishing
phishing is one of the most common methods hackers use to gain access to your wallet, and it is very effective once a victim falls for it. Hackers build websites and emails that appear identical to the originals and use them to cheat unsuspecting individuals out of their investments by forcing them to enter sensitive security information.
Always check the website you are visiting to make sure you are in the correct location. Check that the site has an SSL certificate (the padlock icon in the top left of the link) to ensure that the information you enter is encrypted.
Malware
While malware is one of the oldest hacking techniques, it remains effective if given the chance to flourish. By infecting a user’s device with keyloggers, hackers can track the passwords and PINs that the user enters on their device.
Indeed, malware can hack your crypto wallet as hackers also use cross-scripting to steal sensitive information by redirecting users to another website.
SMS verification compromised
Using surveillance or SIM card cloning, hackers can intercept the 2FA verification process and use it to gain access to your cryptocurrency wallet. Increasing your device’s security and avoiding public Wi-Fi will prevent hackers from blocking your two-factor authentication process.
Theft of secret keys
Once someone has the secret keys to your crypto wallet, it is easy for them to access your wallet. Both your private and public keys should be protected and only you should have access to them to prevent unauthorized access. Avoid crypto-related transactions that require you to reveal your crypto private keys to a third party as this can only lead to scandal.
Protect your cryptocurrency from hackers with these 8 tips
Here are our top eight tips for protecting your cryptocurrency from hackers:
Use multiple wallets
Use a secure internet connection
Change passwords often
Beware of phishing
Protect your local devices
Use a Cold or Hardware Wallet
Enable double-factor authentication
Beware of public Wi-Fi networks and use a VPN.
Use multiple wallets
Don’t keep all your cryptocurrencies in one wallet. For example, you should have a wallet for storing airdrops, one for daily transactions, and one for your primary wallet.
This is one of the most effective methods of minimizing the impact of an attack on your cryptocurrency wallet. Your cryptocurrency investments should be spread across multiple wallets to avoid catastrophic losses.
Use a secure internet connection
Using a public Wi-Fi network or an unsecured internet connection is one of the ways a criminal can gain access to your device. While trading online or using your crypto wallet, use a VPN and a secure internet connection for maximum security. A VPN aims to protect your browsing activities from hackers and allow you to change your IP address and location.
Change passwords regularly
When you use the same password in multiple locations or websites, it can be very easy for hackers to predict your password and gain access to your cryptocurrency wallet.
Changing your password regularly and using complex passwords is essential. In addition, use two-factor authentication (2FA) if it is available on your wallet or device to ensure the highest level of security against hackers. You can purchase an online password manager that can continuously generate very robust passwords to ensure that you do not reuse passwords.
Beware of phishing
Phishing is another method by which cybercriminals gain access to individuals’ crypto wallets and steal their holdings of cryptocurrency. Be wary of malicious ads and emails you click as hackers use them to steal cryptocurrency from unsuspecting users.
Hackers create an email or advertisement purporting to be from the original crypto company to trick individuals into entering their security keys and other sensitive data.
See also unraveling fintech and the role of cryptocurrencies 1 week ago Protect Your Local Devices
When your device be it a PC or a mobile device is not protected, it is easy for someone to access your crypto wallet and transfer your cryptocurrencies to another wallet.
In addition, firewalls and antivirus software should be installed on your device to prevent malware and cyber-attacks. If your device has fingerprint or facial recognition capabilities, you should activate them for the utmost security.
Use a Cold or Hardware Wallet
You can use two methods to store your cryptocurrencies: a hot wallet and a cold wallet. When using a cold wallet, the chance that a criminal will gain access to your wallet is almost nil. A hardware wallet is the most viable option for storing your private keys and other sensitive information.
In fact, hardware wallets offer numerous benefits, such as two-factor authentication, which protects your private key from hijacking attempts. Cold wallets for cryptocurrencies are encrypted, making it impossible for anyone but you to access your private keys.
These cold wallets are a more secure alternative to heated wallets and are less susceptible to cyber attacks. Cold wallets also have a drawback. If a user loses their wallet passphrase, they may lose access to their cryptocurrency. Nevertheless, it is more secure than flash wallets, which are more susceptible to cyber-attacks.
Enable double-factor authentication
two-factor authentication (2FA) increases security by requiring a second code in addition to your password. When you log in from an unknown device, it could be sent via SMS or generated by an app on your phone. If someone compromises your password, there’s not much they can do without the 2FA code. Ensure that two-factor authentication is enabled on all cryptocurrency exchange accounts and wallets.
Beware of public Wi-Fi networks and use a VPN
Avoid accessing cryptocurrency accounts or conducting financial transactions on public Wi-Fi networks as they can be susceptible to surveillance and hacking. Consider using a virtual private network (VPN) for added security if you need to access your accounts on the go.
A virtual private network (VPN) is a technology that encrypts a user’s online traffic, changing its IP address and location. VPNs are an easy way to protect users’ online data and browsing activity from hackers and other third parties.
Conclusion
Cryptocurrency scams are unfortunately common in the digital sphere, so it is essential to be vigilant and take the necessary precautions to avoid them.
Understanding how your crypto wallet can be compromised, such as through phishing, private key theft, and compromised SMS authentication, can help you more effectively secure your wallet. Using a cold wallet, having a challenging and complex password and using a secure internet connection are methods to protect your cryptocurrency wallet from hackers.
However, suppose you have become a victim of fraud. In that case, it is imperative that you act quickly by reporting the scam, changing your passwords, notifying your bank or credit card company, and seeking legal advice if necessary.
Keep in mind that securing your cryptocurrency requires a proactive approach. By implementing these recommendations and staying vigilant, you can significantly reduce the chances of your cryptocurrency being compromised.