Ways to Improve Your Crypto Wallet Security
If you’re worried about the security of your crypto wallet, or that someone might be able to access or intercept your funds, it may be time to upgrade your wallet’s security. Here are some ideas that you can implement yourself. These suggestions will help protect your crypto wallet from hackers and thieves.
Why Is It Important to Improve Your Crypto Wallet’s Security?
Cryptocurrency wallets (digital wallets) and exchange providers are the primary threats to your digital coins. A crypto wallet does not store your digital money, but it does include a private key that enables you to exchange bitcoin over the internet. This private key serves as your digital identity on the cryptocurrency market, and anyone who obtains it can carry out fraudulent transactions or steal your coins.
To hack digital wallets and steal/transfer crypto assets without the user’s awareness, cybercriminals use complex approaches. When it comes to safeguarding your digital cash from hacks, securing your wallet is critical.
How Can I Improve My Crypto Wallet Security?
Hackers and thieves are always trying to break into wallets, exchanges, and other crypto-related services. Although most security experts believe that the risk is relatively low, the more you can do to protect yourself and your funds, the better. Below are some of the best ways to safeguard and prevent data loss in your crypto wallet:
Use a Cold Wallet
Because cold wallets are not connected to the internet, they are not vulnerable to cyberattacks. Keeping your private keys in a cold wallet, also known as a hardware wallet, is the safest choice since these wallets are encrypted.
The Japanese exchange BITpoint identified an unlawful $32 million withdrawal from their hot wallet in several cryptocurrencies targeting over 50,000 customers in 2019. Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Ripple were among the five cryptocurrencies kept on the exchange’s hot wallet. However, BITpoint said that the event had no impact on their cold wallet or cash reserves.
Use Secure Internet
Use only a secure internet connection and avoid public Wi-Fi networks while trading or conducting crypto exchanges. Use a VPN even while connecting to your home network for further protection. Your IP address and location are changed using a VPN, which keeps your internet behavior secure and confidential from threat actors.
Activate Two-Factor Authentication
You create a username and password when you join up for crypto exchange, and you may add two-factor authentication, or two FA, to safeguard your account. To get access to your account, a hacker would need to obtain your login credentials as well as pass the two FA. They’ll accomplish this by calling your phone provider and persuading them to switch your number to theirs.
Secure Your Personal Device
To protect against newly identified vulnerabilities, make sure your personal device is up to date with the newest virus definitions. To prevent hackers from exploiting the flaw by building programs to target the vulnerability, use a robust anti-virus and firewall to increase your device’s security.
Maintain Multiple Wallets
Because there is no limit to the number of wallets you may create, this is one of the finest crypto tax tips available. You can diversify your bitcoin assets by using different wallets. Use one wallet for everyday transactions and another for anything else. This will safeguard your cryptocurrency assets and reduce the risk of a security compromise.
Don’t Get Phished
In the bitcoin industry, phishing attacks using harmful advertising and emails are common. When performing crypto transactions, be cautious and avoid any questionable or unknown connections.
In a recent bitcoin theft, the cyber organization “CryptoCore” used spear-phishing tactics to target cryptocurrency exchanges. Since 2018, attackers have targeted organizations in the United States and Japan, stealing cryptocurrencies worth $200 million in two years.
Before launching a spear-phishing assault, CryptoCore conducted a reconnaissance phase to identify the email accounts of the cryptocurrency exchange’s workers and security executives, according to ClearSky. Fake websites mimicking related companies and personnel were used in these assaults, as well as malicious URLs included in documents sent by email.
Change Your Password Regularly
When it comes to security, the value of a strong password cannot be overstated. According to research, three-quarters of millennials in the United States use the same password on more than ten different devices, applications, and social media accounts. The majority of them were also using the same password on over 50 different sites, according to the report. Make sure you have a strong, complex, and difficult-to-guess password that you change on a regular basis. If you have many wallets, use different passwords for each.
The goal of these crypto security tips is to give you the opportunity to make your own decision as to which recommendations are best for your situation. The information above is merely a guideline, but there is no such thing as ensuring cyber security 100 percent against all threats. Check out our blog for more crypto tips.