Cryptocurrency is a digital asset that uses cryptography to secure its transactions and regulate the creation of new coins. Cryptocurrency wallets are software programs that store your public and private keys, which you need to access your funds.
With the recent spate of cryptocurrency hacking attacks, it’s more important than ever to ensure your crypto wallet is as secure as possible and know how to protect it from would-be thieves.
Hackers are constantly finding new ways to break into wallets and steal people’s hard-earned money, so it’s crucial to stay up-to-date on the latest security threats.
To protect your crypto wallet completely, you need to take the following precautions:
1. Store your cryptocurrency in a cold-wallet
A cold wallet is a wallet that is not connected to the internet. This means that scammers cannot hack it remotely. Cold wallets can take the form of a physical storage device, such as a USB drive or a piece of paper with your private key printed on it.
2. Use a “hot” wallet for day-to-day transactions
A hot wallet is a wallet that is connected to the internet. While this makes it more convenient for everyday use, it also makes it more susceptible to hacking. If you use a hot wallet, take extra security precautions, such as using a strong password and two-Factor Authentication (2FA).
3. Don’t store all your cryptocurrency in one place
If you have a large amount of cryptocurrency, it’s best not to keep it all in one place. This way, if one wallet is hacked, you will not lose everything.
4. Never store your private key online
Your private key is what gives you access to your cryptocurrency. If it falls into the wrong hands, your funds could be at risk. For this reason, it’s critical never to store your private key online, even if it’s encrypted.
5. Back up your wallet regularly
You should periodically back up your crypto wallet like any other essential data. This way, if your computer is ever lost or stolen, you can still access your funds.
6. Be aware of phishing attacks
Phishing is a type of online fraud in which hackers pose as a legitimate website or service to trick you into giving them your personal information. When it comes to cryptocurrency, phishing attacks are often used to steal people’s private keys or login credentials. Be sure to only enter your personal information into websites you trust and look for signs of fraud, such as misspellings and grammatical errors.
7. Keep your software up-to-date
Hackers constantly find new ways to break into systems, so it’s vital to keep your software up-to-date. Update your software regularly to ensure you have the latest security patches. This includes your operating system and any wallets or exchanges you use.
8. Use a reputable cryptocurrency exchange
When you’re ready to buy or sell cryptocurrency, use a reputable exchange. There have been many cases of fraud and theft at exchanges, so it’s important to choose one that is well-established and has a good reputation.
9. Don’t Click on Suspicious Links
Many scams and fraud attempts involve email or other online communications. Be careful of any links or attachments you receive, even if they appear to be from a trusted source. If you’re not sure whether a link is safe, it’s best to err on the side of caution and not click on it.
10. Be Careful with Public Wi-Fi
Public Wi-Fi is a hotbed for hackers. If you’re going to use it, be sure to only access encrypted websites (https://). You should also avoid conducting sensitive transactions, such as logging into your wallet or making a cryptocurrency purchase.
11. Be Wary of Social Engineering
Social engineering is a type of fraud that relies on human interaction to trick people into giving up their personal information. For example, a scammer may pose as a customer service representative from your wallet or exchange to get you to give them your login credentials. Always be suspicious of anyone who contacts you out of the blue and asks for personal information.
12. Use a VPN
A VPN (virtual private network) is a great way to add an extra layer of security to your online activities. When you connect to the internet through a VPN, your data is encrypted and less vulnerable to being intercepted by hackers.
13. Don’t Reuse Passwords
If a hacker gets their hands on one of your passwords, they will try to use it to access other accounts you have. For this reason, it’s paramount never to reuse passwords. Use a password manager to keep track of all of your different passwords.
You can help keep your cryptocurrency safe from hackers by following these tips. Remember to always be vigilant and take steps to protect your personal information. If you think you may have been a victim of fraud or theft, contact your local law enforcement authorities.