How to Secure Your Crypto Wallet Against Hacks

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The birth of cryptocurrency marked a significant turning point in the financial industry. Before this innovation, monetary value was restricted to traditional currencies and commodities primarily managed and stored within banking institutions. Transacting with these assets required the consent of a third party. However, this entire scenario was transformed with the advent of cryptocurrencies.

Cryptocurrency established a system that eliminates the need to store our money in banks or wait for third-party transaction approval. It enables us to conduct trades globally and at any time via the blockchain. Despite its potential benefits and the excitement it generates, this technology is not without its flaws and disadvantages. Currently, the widespread embrace of cryptocurrency is hindered by its slow mass adoption rate, largely due to the recurring instances of harmful hacking incidents.

Create a Backup for Your Wallets

As a standard practice, it’s important to store your wallet’s private keys offline to prevent access by hackers. It’s equally crucial to maintain offline backups of these keys. In addition, keeping a copy of your keys in a location outside your home is strongly advised, providing you with access should an event like a fire or earthquake threaten your home’s safety.

While it might seem unexpected, a suggested location for storing a backup of your private key is your bank’s safe deposit box. However, this should be a secondary measure; always have your private keys readily accessible when needed.

Verify the Recipient’s Address Thoroughly

Cryptocurrency users often risk losing their funds indefinitely if they enter the address incorrectly, with no means of retrieval. Hence, it’s crucial to thoroughly verify the address before you purchase Bitcoin or make any payment transactions.

Be alert for harmful software that can manipulate a basic “copy and paste” action, leading to pasting an incorrect address owned by the perpetrator. A typical strategy to safeguard your transfer is to initially send a small amount as a test, followed by the full amount.

Establish Two-Step Verification

Implementing two-factor authentication (2FA) for all your cryptocurrency accounts is highly recommended. This additional security measure significantly increases the challenge for anyone attempting to breach your wallet.

2FA represents a dual verification process. One must successfully pass through two distinct authentication stages to access an account. Thus, even if the email and password associated with your wallets are compromised, producing the second stage of verification (typically a security token, biometric data, or mobile device) poses a substantial hurdle for hackers. You can establish 2FA for all your wallets, bank accounts, and other online assets worth safeguarding by using apps like Google Authenticator or any similar tool.

Be Cautious of Phishing Attempts

Phishing is a specific attack where a cybercriminal might pretend to be a trustworthy source to extract your private information, and it’s startling how often individuals become victims. Never sign into your cryptocurrency exchange to prevent phishing unless you’re confident you’re on the right site.

Add the link to your bookmarks, or manually enter the URL instead of clicking on a link that someone else randomly sent you. Also, be cautious with texts, emails, or chats that request your personal information. Lastly, always confirm the accuracy of the details before making any payments.

Keep Your Private Keys in Offline Storage

Your private keys are sensitive details tied exclusively to your wallet. They enable you to access your funds in your cryptocurrency wallets, and if they end up in the wrong hands, all your crypto assets could be lost.

While it’s possible to store your private keys in an online database and back them up in a secure database, an alternate and convenient approach is to store them offline using cold wallets. Assuming your private keys or seed phrases are securely stored where you can always access them, it is almost certain that your crypto assets are safe.

Endnote

Ensuring safety is of utmost importance when handling cryptocurrencies. Cyberattacks will likely escalate and become more prevalent as these digital currencies gain stability and continue to impact our global economy. Implement the following safety measures to safeguard your cryptocurrency assets in your wallet.