Home Finance What you Need to Know about Protecting Your Cryptocurrency Wallet

What you Need to Know about Protecting Your Cryptocurrency Wallet

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Cryptocurrency wallets (digital wallets) and exchange providers are the main threats to your digital currencies. Unlike a conventional wallet, a crypto wallet stores only the private key, which lets you trade cryptocurrencies online. Those who obtain your private key will have access to your digital identity on the cryptocurrency market, allowing them to carry out fraudulent transactions or take your coins. It is possible for cybercriminals to steal/transfer crypto assets in secret and without the knowledge of the user. When it comes to keeping your digital currency safe from cyberattacks, securing your wallet is essential.

You can secure your cryptocurrency by following these steps:   

  1. Make use of a cold wallet

A cold wallet does not connect to the internet, so it is not vulnerable to cyberattacks.  Cold wallets, also called hardware wallets, are the most secure way to store your keys since they are encrypted.

According to research from the Japanese exchange BITpoint, $32 million was withdrawn from its hot wallet in various cryptocurrencies in 2019 targeting more than 50,000 users. Among the five cryptocurrencies held by the exchange were Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Ripple. The incident did not affect BITpoint’s cold wallet or cash, however.The incident did not affect BITpoint’s cold wallet or cash, however.

  1. Access the Internet securely

Avoid using public Wi-Fi networks when trading or making crypto transactions. Use a VPN whenever you access your home network for additional security. Your browsing activity can be kept safe and private from threat actors by using a VPN.

  1. Always keep more than one wallet

Wallet creation is not limited, so you can invest in cryptocurrencies across multiple wallets. Your daily transactions should be in one wallet, and the rest should be kept in a separate but safe Bitcoin wallet. Your portfolio will be protected and any loss from a crypto account breach will be minimized.

  1. Make sure your devices are secure

To protect your devices from newly discovered vulnerabilities, make sure your virus definitions are up to date. You can prevent hackers from taking advantage of the weakness by strengthening your device’s security by using antivirus and firewall software.

  1. Keep your passwords up-to-date

When it comes to security, we cannot undervalue the importance of a strong password. A study found that three quarters of millennials in the U.S. use the same password across more than ten social media accounts, apps, and devices. Additionally, it stated that most of them used the same password at over fifty different sites. Ensure that you have a complex and strong password, and change it regularly to avoid being guessed. Make sure you use different passwords for each wallet you have. Adding extra security can be achieved by using two-factor authentication (2FA) or multifactor authentication (MFA).

  1. Beware of phishing

The cryptocurrency world is rife with phishing scams that use malicious ads or emails. Be careful of suspicious links and ads when making crypto transactions.Be careful of suspicious links and ads when making crypto transactions.

CryptoCore, a hacking group that recently hacked cryptocurrency exchanges using spear-phishing campaigns, carried out a recent cryptocurrency heist. The US and Japanese governments have been hacked for 200 million dollars in cryptocurrency since 2018. Before conducting a spear-phishing attack, CryptoCore conducted reconnaissance to identify the company’s employees and security executives’ email accounts. During these attacks, fake domains were used to impersonate affiliated organizations and employees, and malicious links were embedded in email attachments.

Final thoughts   

Cryptocurrency is always evolving, and it is entirely your responsibility to keep your digital funds safe by taking essential safety precautions in your wallet. Research the latest attacks, prevention strategies, and security news.

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