On the one hand, the demand for cryptocurrency is so high. But on the other hand, people are holding back on such investments because of potential security risks. If your cryptocurrency gets stolen, or if you digitally lose it, it is next to impossible to retrieve it. For this reason, we must take steps to protect our crypto to the best of our abilities.
What is a digital exploit?
Cyber or digital exploit means taking advantage of the weak security of software. In our case, this refers to taking advantage of vulnerable and flawed crypto wallets. Crypto wallets are devices that hold private keys for your crypto transactions. It can be a program or a service, but its function remains the same. It is also common for cryptocurrency wallets to allow encryption and signing information.
Despite the ease and the popularity of crypto wallets, there are increasing threats. Since 2012, approximately $3 billion has been stolen from crypto transactions.
Top 5 tips for securing your crypto wallet
One should come to terms with the fact that crypto can never be fully safeguarded. As a result, there will always be a likelihood of exploitation. However, we can accommodate the following five tips to maximize the security of our cryptocurrency wallets.
Tip 1. Shift to a “cold” wallet
Hot wallets connect to the internet. But unlike hot wallets, cold wallets, also called hardware, do not do this.
How does this happen?
A cold wallet keeps the information offline and keeps your keys secure. It allows you to keep your selected information in the short term and the rest offline. In addition, this cold wallet holds a private key that enables you to access your currency.
Losing this key would mean you lose all your funds. If the wallet is hot, the information would be in the hands of online providers. Hacking is significantly easier this way.
How to avoid the mistake?
This is where cold wallets come into play. They keep your information encrypted and safe. In addition, they reduce the risk of other online providers potentially hacking your key. You can also hold more than one cold wallet to spread your funds, each with a different private key.
Tip 2. Frequently change your password
It is the simplest strategy you can apply to protect yourself. For example, changing passwords frequently doesn’t allow anyone to access your crypto wallets.
How does this happen?
It is safe to say that every password is hackable. 3/4ths of millennials reuse the same password for at least ten accounts. To minimize this, it is best to change your password regularly. The ideal time is every six months.
How to avoid the mistake?
First, make sure you keep a solid and complex password that is not easy to guess. Never reuse a password you have used elsewhere, as this can increase the risk of getting hacked. It is not possible to remember every password you keep, especially if you change it every six months.
An alternative is to use a trustworthy password manager, which allows you to secure your password and keep it safe — for example, 1Password. If you decide to maintain multiple wallets, keep your keys’ passwords different from one another.
Tip 3. Use a secure internet
It’s like going to the bottom of the issue. If your internet is secure, nobody can access your info.
How does this happen?
You may be tempted to check up on your cryptocurrency when you enter a coffee shop with free Wi-Fi. But do not give in to the temptation. Public internet is very risky and should be avoided at all costs for online browsing, let alone opening your crypto wallet.
How to avoid the mistake?
Use a VPN to be safe. It maintains the privacy of your activities and prevents any tracking of them. Make sure you pick a trustworthy VPN. It will allow you to keep your information secure from hackers as soon as you go online. A VPN modifies your current location and IP address by creating an encrypted tunnel.
Tip 4. Keep your device updated and protected from virus
It’s important to get rid of all the viruses in your devices. It gives you a natural barrier from phishing and hacking attacks.
How does this happen?
Firstly, make sure you update your device regularly. It is best to turn on automatic updates to keep your device and other applications secure. Also, install a trustworthy antivirus and antimalware software.
How to avoid the mistake?
Regularly updating will make sure your device, and consequently your crypto wallet, is safe and protected from attacks from online hackers. Also, update your antivirus and antimalware system frequently. Such preventive measures will help you keep your information secure in the face of weak security.
Tip 5. Stay cautious of phishing
Phishing involves sending an email or any other message that may look like coming from a reputable source.
How does this happen?
When making crypto transactions, you may come across promising and authentic ads. However, in reality, these are dangerous links that make you reveal your personal information. This is called phishing and is the most common method to hack crypto wallets.
You may receive emails that tell you that the origin is a movement agency or charity. Unfortunately, you will then be led to some faulty website where hackers will be able to gain access to your private information.
Why does this happen?
Avoid clicking any unknown links and malicious ads that may seem suspicious. Sometimes the links may seem genuine, but do not trust them unless you are sure. Do not ever log into your account unless you are sure that you are on the right site. Save the correct URL of the link to know which one is authentic. Remember to check the receiver’s details twice before making any transactions.
Final thoughts
In today’s day and age, cryptocurrency is taking over by the minute. It is convenient and can reap large rewards. However, once you get into the world of cryptocurrency and trading, you need to take steps to make sure your information and your money are safeguarded.
The tips mentioned above will help you achieve a secure and protected crypto wallet. However, make sure you take as many protective measures as you can.
