Tips To Secure Your Cryptocurrency Holdings

Digital currencies like Ethereum and Bitcoin are peer to peer. This means that they can be sent anywhere in the world without permission. It also means that you are solely responsible for the security of your digital assets. Only you can secure it from hackers and cybercriminals.

As cryptocurrency becomes more mainstream, it has attracted both cybercriminals and investors. The crypto space has been affected by numerous heists and hacks on wallets and exchanges alike. How can you protect your crypto from hackers? This guide will highlight the top tips to follow.

Crypto wallets and exchange providers are the most affected when there is a hack. Crypto wallets do not only store your tokens but contain a private key. This key also allows you to sell your coins online. Also, the private key is considered your digital identity in the space, and anyone who controls it can steal your cryptocurrency or perform fraudulent transactions.

Hackers and other cyber criminals use different methods to compromise your digital wallets and transfer your assets with your knowledge. This is why you need to keep your wallet secure to protect it from cyberattacks.

Tips To Secure Your Wallet

Here are the easiest tips to secure your wallet.

Secure Internet Connection

While making cryptocurrency transactions or trading, ensure that your internet connection is secure. Do not use public Wi-Fi networks. Also, you can use a VPN at home for extra security. The VPN changes your locations and IP address, and this keeps your activity safe from cyber criminals.

Opt For a Cold Wallet

Cold wallets are crypto wallets that aren’t connected to the internet. In cold storage, the storage and generation of private keys is in an offline environment. Hot wallets are the opposite of this, and they are connected to the internet. Storing your crypto on cold wallets or hardware wallets as they are also called can help you keep your digital assets safe from cyber criminals. They come encrypted so your keys will remain secure at all times.

Maintain Multiple Wallets

There is no limit for wallet creation when it comes to cryptocurrency. So, you can try to diversify your crypto investments and place them in different wallets. One wallet can be used for your daily transactions while the other funds are placed in separate wallets. This helps protect your crypto and also reduces the risk of losing money if there is a breach.

Change Your Password Frequently

A strong password can help protect your wallet in so many ways. One study found that around three-quarters of millennials use the same password in over ten devices in the U.S. This also includes social media accounts and other apps. In some cases, some had the same password on more than 50 different sites.

This is a serious security risk that should be avoided for cyber security purposes. Always ensure that your passwords are strong and complex. They should be difficult to guess, and some suggest that they should contain capital letters, special characters, and numbers. Also, it is ideal to change it from time to time in case it may have been compromised.

To strengthen your wallet, use separate passwords for each wallet. It is also possible to use two-factor authentication for extra security. It is a lot more difficult to hack into a well-protected account.

Secure Your Device

Another way to protect your crypto wallet is by securing your device. Ensure that your personal computer is up to date with antivirus to protect your system from vulnerabilities. A strong firewall and antivirus are essential to enhance your personal computer’s security. Hackers could take advantage of the weakness and write a code that targets the vulnerability.

Avoid Phishing Attacks

Phishing scams through emails and malicious ads are quite common in the crypto world. This is why you need to be careful during crypto transactions. Don’t click on any suspicious-looking link. The recent hacking of some crypto exchanges involved spear-phishing campaigns and the hacker made away with $200 million worth of cryptocurrency.

Hackers can find emails of employees and security executives of crypto exchanges and conduct a spear-phishing attack. Such attacks can be performed with fake domains that impersonate employees and organizations. It could also include malicious links embedded in documents through emails.

Conclusion

The crypto industry evolves every day. Still, it is the responsibility of the digital wallet owner to protect their funds. Ensure that you only use secure networks and avoid phishing attacks. Changing your password often and using two-factor authentication can also help. Read up on new and updated security measures to keep your wallet and funds safe since hackers are always looking for new ways to get their hands on your coins.

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