5 months ago 5 min read

Crypto Wallet Protection; The 7 Commandments

Table of Contents

The cryptocurrency industry is expanding and becoming more and more well-known. And everyone would concur once they learned that the global cryptocurrency market had a 2021 valuation of $1.69 billion. It is abundantly obvious that the cryptocurrency market is expanding despite its volatility. Volatility shouldn't be overlooked, though. In order to prevent their investments from being a waste, investors must carefully follow it.

Additionally, the crypto sector includes other risks besides volatility. Every crypto fan needs to be aware of these risks and know what to do to preserve their digital assets because there are numerous other dangers that might harm cryptocurrency investors everywhere.

What's the greatest strategy to guarantee that your cryptocurrency investment pays you as much as possible? You must ensure your wallet is adequately secured in addition to using a crypto wallet to protect your money. Some of the greatest practices to use are the suggestions in this article.

5 Security Risks Affecting Cryptocurrencies in 2023

Although it is claimed that using digital currencies is a safe and quick way to transfer money, there are risks involved. During the pandemic, hackers' fraudulent operations in the bitcoin industry increased, and many cryptocurrency users became the victims.

With hackers pretending to be reliable sources of information or investment advice, the risk keeps rising as it appears that the globe is about to enter a recession.

The risk of losing some or all of your money is real, and there is no way to make up for it. The dangers listed here are some of the most important ones that bitcoin investors need to be aware of.

1) Unprotected Trading Platforms

Users run the danger of losing their money if a hacker manages to breach the security of a trading site. After a successful hacking attempt on its network in 2018 that resulted in the theft of $532 million worth of coins, Coincheck suffered a terrible loss. Once they have gained access to the platform, hackers can use user keys to withdraw money and carry out fake trades, causing enormous losses.

Because of this, you should store your assets in a cold storage wallet rather than keeping sizable quantities of cryptocurrency on an exchange.

2) Malware that Deceives Users

Hackers come up with creative and novel techniques to mask malware and deceive unwary victims. A bogus tool that advertises on bitcoin websites is one example of such malware. This is why, even when visiting a trusted website, it is best to check twice before clicking on any links or advertisements. Never download a tool unless you are certain that it is trustworthy.

3) Cloned-off Phishing Attempts on Reputable Websites

Posing as a legitimate trading platform and requesting login information from investors is one way phishing can acquire your credentials. Crypto users receive phishing emails from hackers that contain links that direct them to a fake website. Once more, it's wise to double-check links before clicking on them and carefully review URLs to ensure that they are properly spelled before providing any information.

4) Fraudulent Registration Forms

Hackers often take advantage of registration forms on trading platforms to acquire information they can resell on the dark web. In a situation like this, it is difficult to identify a hacking effort, which is why it is so dangerous.

5) Social Media Shenanigans

A social media fraud involving celebrities has been developed by cryptocurrency thieves. In this scam, notifications about a "special giveaway" imply that users should send cryptocurrency to a particular address in exchange for a doubled or tripled amount. Many cryptocurrency investors fell for this kind of frauds because they thought they were coming from affluent and reputable sources.

How to Safeguard Your Crypto Wallet

Some cybercriminals search the internet for the private data of investors, like their phone numbers and email addresses, and then use that data to persuade service providers to change the phone number to another device. When the victim's phone number is changed to one they control, they can gain access to their bitcoin account, reset the password, and take their money.

Although there is a chance that hackers will steal your money, there are several precautions you can take to assist keep your crypto wallet secure. Although there is no ideal solution, following seven advice can help novice bitcoin investors.

1) Download a VPN and Use it to Connect

When you are away from home and need to access your cryptocurrency wallet via public WIFI, think about using a VPN program. Since public WiFi lacks strong security measures, it is simple for hackers to gather personal data from users that connect to the network. A VPN masks your real IP address, preventing hackers from determining where you are.

2) Make Use of Two-Factor Authentication

The use of two-factor authentication (2FA) is a great technique to safeguard your cryptocurrency wallet. It has an additional level of security. You can utilize the 2FA capability to access your wallet by downloading an app like Google Authenticator.

Additionally, anytime you log in, you have the choice of getting notifications through text or email along with a verification code.

3) Have Your Wallet Encrypted

Make sure your cryptocurrency wallet is configured so that withdrawals require a password. Hackers will have a tougher time figuring out the password if it is unique and contains a mix of letters, numbers, and punctuation.

It is strongly advised against using your social network password for your cryptocurrency wallet. Keep a hard copy of your intricate passwords in a secure location if you find it difficult to remember them.

4) Cold Wallet Usage

Hardware wallets, commonly known as "cold storage," give you the option of offline digital asset storage. The key benefit of a hardware wallet is that because your assets are stored offline, hackers cannot access your account when they use one. A hardware wallet could be a USB or a hard disk. Make careful to encrypt your hardware wallet and take regular backups as a recommended practice.

5) Diversify Your Funds

Can you image having all of your money in one location and losing it all? Terrible!

Never put all of your eggs in one basket; this way, even if you lose one basket, you won't lose all of your eggs. In order to lessen the effects of any losses, segregate and keep your coins on several wallets. Generally speaking, it is usually a good idea to keep the majority of your savings in cold storage and just have a little amount available for trading online.

6) Maintain Software Updates

Always use the most recent version of your wallet application to ensure that any security flaws are resolved right away. You should also frequently update any other software, including antivirus, on your phone or the computer where you maintain your cryptocurrency wallet.

7) Purchase a Wallet From a Reputable Provider

Do your research before choosing a cryptocurrency wallet because there are a lot of phony wallets and apps available. Even when utilizing well-known retailers like the App Store or Google Play, you should always check twice before installing. To assist you in making the best choice possible, read reviews and do extensive research on the supplier.

The Conclusion

Although cryptocurrencies operate in a turbulent market and pose serious risks when stored and traded, they are in some ways a secure form of virtual payment. The loss of assets from which you may never recover is the tragic outcome of any of these dangers.

What can you do to lessen such dangers and safeguard your money? Take initiative. The more you know about the necessary security measures, the better equipped you will be to fend off harmful hacking efforts. Cybersecurity is a personal responsibility.

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