Cryptocurrencies are becoming increasingly popular, and their exchange rates are competitive, but they are also becoming a target for cyber-criminals and hackers. They’re always on the lookout for weak spots in the network where they can set up a breach and steal someone’s identity and cryptocurrency holdings.
One of the most prevalent suggestions is to keep your crypto winnings in your e-wallet, however, even this device might be vulnerable to cyber-attacks. These activities jeopardize data privacy which everyone is battling.
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 contain a private key that allows you to exchange bitcoin over the internet.
This private key serves as your digital identity on the bitcoin market, and anyone who obtains it can carry out fraudulent transactions or steal your money. To hack digital wallets and steal/transfer crypto assets without the user’s awareness, cybercriminals employ complex approaches. When it comes to protecting your digital cash from hacks, securing your wallet is critical.
During the COVID-19 crisis, we witnessed the crypto market grow to unprecedented proportions. However, this also implies that viruses and scams are on the rise, especially as individuals relocate from workplaces to their homes for work.
In certain circumstances, this implies they are working from public hotspots or connecting to open Wi-Fi, among other actions that put your computer data at risk.
Many social media users claim to be receiving various offers from people they don’t know, asking them to click on a link that leads to a potentially harmful page, where they could become victims of identity theft.
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Table of Contents
1. Make Use of A Cold Wallet
Cold wallets, unlike hot wallets, are not connected to the internet and hence are not vulnerable to cyberattacks. Keeping your private keys in a cold wallet, also known as a hardware wallet, is the safest choice because these wallets are encrypted.
The Japanese exchange BITpoint identified an unlawful $32 million withdrawal from its hot wallet in various cryptocurrencies targeting over 50,000 customers in 2019. Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Ripple were among the five cryptocurrencies kept in the exchange’s hot wallet. However, BITpoint stated that the incident had no impact on its cold wallet or cash reserves.
Online wallets are a common target for fraudsters, therefore traders should opt for actual offline wallets instead. Withdraw a larger portion of your funds there, and make sure you have all of your keys and codes, which you should keep in a safety box or somewhere away from prying eyes.
These devices resemble ordinary USB memory sticks and can be easily damaged if not handled correctly. You can only store a little quantity of money in your online wallet to cover any future transaction fees.
2. Use two-factor authentication.
Protect your trading account or cryptocurrency wallet with at least two layers of security. Your account is still susceptible if you just use one password, no matter how complex the combination is. So, if your smartphone allows it, you can use a code you’ll get via email or SMS to unlock the app, or you can use fingerprint or face recognition to access your money.
Also, use a strong password that does not include your name, date of birth, or passwords like “123456789” or “qwerty123.” You can even switch it up every now and again if you feel like it.
3. Use a secure internet connection.
Use only a secure internet connection and avoid public Wi-Fi networks when trading or conducting crypto transactions. Use a VPN even when connecting to your home network for added security. Your IP address and location are changed using a VPN, which keeps your internet behavior safe and confidential from threat actors.
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4. Adhere to proper cyber hygiene.
This isn’t a singular activity. It’s more of a collection of habits that are in charge of your online safety. That means you should constantly use antivirus and antispyware software and keep them up to date.
Then, check the URLs of the websites you frequent to determine if they are correct. Don’t click on every link you get, regardless of where it comes from. Don’t give out your personal information to strangers.
It might be tough to recognize a scam at times, which is why you should be cautious when you get something unexpected. Malicious links are the biggest con in history, but many people still fall for them, exposing the network to risks.
5. To mine or trade, just use one device.
Do not trade cryptocurrencies on your friend’s computer or on the office PC that you may share with your coworkers. You must be accountable for your own safety while taking activities like this.
You probably feel horrible when you have to use your personal Facebook account or email at work, and you open an incognito window to ensure that nothing is left open after you finish your assignment.
Your cryptocurrency operations are far more serious, and you should never “spread” your account. Because it’s a device you use alone, it’s always a better alternative to use your smartphone to check the situation.
6. Choose just one or two cryptocurrencies to invest in.
If you’re a newbie, you’re probably overly excited about your market activities and want to try everything on offer. All those endless alternatives and appealing currencies pique your interest, but if you try to work with more than two of them, you’ll quickly lose sight of the security precautions and end up in a complete mess. So, start with one or two cryptocurrencies and expand once you’re confident you’re ready and your activities won’t make you an easy target for cyber-attacks.
As you’ve seen, the crypto market is still hazardous and susceptible, and hackers may easily cause havoc and steal crypto investments that aren’t adequately protected.
Treat your crypto activities in the same way that you would your social media activities. To safeguard what you have, use all of the PINs, passcodes, keys, and layers of authentication that are required. Once you’ve obtained your actual gadget, keep it safe at all times, just as you would your wallet and cash.
However, keep in mind that you could become a victim of cyber-criminals at any time, especially if you share this information with your friends or strangers.
7. Change your passwords on a regular basis.
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, complicated, and difficult-to-guess password that you change on a regular basis. If you have many wallets, use different passwords for each. For added protection, use two-factor authentication (2FA) or multi-factor authentication (MFA).