Many people are hesitant to invest in cryptocurrency due to the security risks. This is especially true since the investor has the responsibility of protecting their investment. You may not be able to access legal recourse because cryptocurrency is not regulated by the majority of governments, unlike FDIC-insured bank account accounts.
Although online transactions can be risky, you can keep your cryptocurrency safe by following the same practices that keep you safe online. You will need to use the same practices to protect your cryptocurrency wallet. Online banking security is also important. You can also do a few other things to protect your cryptocurrency investments.
While cryptocurrency is gaining popularity, there are also growing threats to it. It is becoming more attractive for hackers as more people invest in cryptocurrency. Since 2012, nearly $3B has been stolen from cryptocurrency exchanges. There have been more than a dozen attacks since then. The pandemic began with an estimated loss in excess of half a Billion dollars in April 2020.
Hackers have many ways to steal cryptocurrency. They can steal your password or hack an exchange platform. They can also lure information from you through phishing attempts. The most popular attack is to steal private keys from a crypto wallet. Although it is unlikely that you will be able to protect your cryptocurrency against all possible attacks, there are many things you can do to increase your security and decrease your risk.
Is your crypto wallet secure? These 10 tips will help protect your cryptocurrency against hackers. While you may not require all 10 tips, it is worth assessing the level of risk that you are willing to take before deciding how much security you need. These tips are applicable to both your computer and your mobile phone, as mobile apps have become a popular tool to manage a crypto wallet.
To secure your crypto wallet, you must first store it in a “cold” or hardware wallet. You may only need some of your crypto wallets for transactions online, but you should keep the majority of it offline. A cold crypto wallet is roughly the same size as a USB device and contains private keys that you can use to access your funds. Although you can create your private key, losing it could result in losing your investment. Two investors lost their private keys for their hard wallets in a recent case. However, their investment grew to several million. To crack their crypto wallet and get $2 million in cryptocurrency, the investors hired a hardware hacker. If you don’t want to hire a private hacker make sure that your private key is well stored. Do not share your private key. EVER. For maximum security, keep it in a safe place like a safety deposit box or fireproof safe.
Online providers can access your private keys, which could lead to you losing your investment. You can spread the risk further by having multiple crypto wallets. This will ensure that even if one of your private keys is stolen, all are safe. This means you need to secure more than one private key, each with its own complexity. It’s always a good idea to make use of financial software like the Prillionaires wealth tracker to keep track of all of your different wallets, as well as your other investments.
Software crypto wallets are an alternative to cold wallets or online wallets. But, malicious apps can still compromise your application wallet stored on your smartphone or personal computer.
Be aware that not all exchanges are the same. You should do your research and find out which cryptocurrency exchanges were compromised in the past. If an exchange is hacked it could indicate poor security practices or vulnerabilities that could put your investment at risk.
Many cryptocurrency exchanges don’t provide legal protection for your investment. If your investments are compromised, you may lose them. It is important to select an exchange that follows security best practices, such as multi-factor authentication and enforcing SSL encryption. You should also check if there are safety measures in place such as limits on balance transfers and notifications.
It is a sad fact that passwords are likely to be compromised in today’s world. Protecting your password means creating a complex password, keeping it safe, and changing it frequently. Do not reuse passwords that you have already created when choosing a password for your crypto wallet. Your password should not contain any personal information. It is safer to save passwords in a password manager than to save them to your browser. Last, make sure to change your password every six months.
MFA provides a layer of defense for your account using independent credentials that are based on a security token, password, and/or biometrics. MFA stands for “knowing and having”. In other words, you know your password, and you have a token, push notifications, or biometrics.
You can choose between SMS and push notifications for two-factor authentication (2FA). 2FA is generally better as an attacker can gain access to your SIM card and get a notification sent to them. SIM Swaps are a common way for attackers to gain access to accounts. Call your operator immediately to cancel your SIM card if your phone is stolen. SIM swaps can also happen if your phone suddenly stops working. Ask your service provider for a lock to prevent SIM swaps.
Phishing can be a targeted attack in which an attacker poses as a legitimate entity to obtain your sensitive information. It’s a common tactic that people fall for. Avoid phishing by never logging in to cryptocurrency exchanges unless you’re certain you are. You can save the link to your favorites or simply type the URL instead of clicking on a random link sent by someone else. Do not give out your personal information to anyone via text, email, or chat. Before you send any money, double-check that all details are correct. To hide your IP address or location, you should use a VPN whenever possible. VPNs are available for use on all devices to protect your data and prevent eavesdropping and tracking. VPNs create an encrypted tunnel that encrypts your internet activity and gives you full control of your data. This should be part of your overall online security measures, not just for cryptocurrency trading.
No matter what device you use, make sure it is up-to-date with the most recent software. You can also set up automatic updates. You can set up automatic updates to ensure that all applications on your device are current. Endpoint security, such as anti-malware or anti-viruses, is equally important.
Although it is tempting to share your crypto investment success stories on social media, this invites attackers. To remove any connection to their identity, many people trade cryptocurrency anonymously. It is not a good idea to post details about your trading activities, such as which exchange you use or your losses or gains, on social media
The methods you can use to protect yourself from attacks are always changing. It is important to keep an eye on the news for any new threats or attacks so you can quickly respond if your cryptocurrency wallet becomes vulnerable.
Although it may seem like a lot of work to secure your cryptocurrency, it is well worth it. An attacker will find it easier to access your crypto wallet if it’s easy for them to log in. Online transactions can also be vulnerable so these best practices will help protect not only your crypto wallet but all of your online interactions. It is worth investing in extra security to protect your cryptocurrency.