In one of our last posts titled “Crypto Security: How to Protect Yourself from Hackers,” we talked about some tips you can use to secure your cryptocurrency investments from hackers and malicious players in the industry. Today, we are bringing to you additional methods you can use to safeguard your “crypto wallets” from being taken over by thieves.
Cryptocurrency wallet hacks and related issues are significant concerns for individual investors and businesses that use cryptocurrencies. As the crypto market and its users grow rapidly, so are the dirty players, who are looking for ways to exploit unsuspecting participants by getting access to their crypto wallets by any means necessary.
This is because the crypto market has caught the eye of both legitimate investors and notorious hackers over the years due to the continuous rise in the prices of cryptocurrencies. The total cryptocurrency market cap, for instance, has grown from just a little above $1 billion to over $1 trillion dollars today. As expected, millions of people continue to feel excited as the market surges.
However, cybercriminals employ many strategies to get into people’s crypto wallets and are constantly looking to exploit any security vulnerabilities that might be found in such wallet programs. The good news is that if you take the necessary precautions, you can avoid becoming a victim. That is the purpose of this article—to show you how you can protect your wallet from hackers and your crypto assets from loss. Importantly, these methods are both applicable to both “custodial” and “noncustodial” crypto wallets in one way or another
5 simple ways to protect your cryptocurrency wallets from hackers
There are several ways to protect your cryptocurrency wallet from hackers. Some of the most effective methods are:
Never expose your wallet's private keys
Always keep your software and security measures up to date
Do not reuse your passwords
Avoid public Wi-Fi
Use a VPN when using online wallets
A deep-dive into ways you can protect your crypto wallets from hackers
Never expose your wallet's private keys
A crypto wallet private key is a secret code that allows you to access and manage your cryptocurrency holdings. It is crucial to never expose your private keys, as they can be used by malicious actors to steal your funds if they are obtained. This can be achieved through phishing scams, hacking, or even physical theft.
By keeping your private keys secure, you maintain full control over your assets and prevent unauthorized access. Therefore, it's important to store your private keys in a secure and accessible place and to never share them with anyone, even a trusted friend or family member. Exposing your private keys can result in a permanent loss of your funds, making it one of the most critical security measures to follow in the world of cryptocurrency.
Another point worth mentioning under this is to regularly back up your crypto wallets, as well as their individual passwords. This will ensure that you can recover your cryptocurrencies in case of theft, loss, or damage.
Always keep your software and security measures up to date
Staying on top of security updates is crucial for the protection of your cryptocurrency funds. Regularly updating both your wallet software and security measures, such as antivirus software, will ensure that you have the latest security features and protections in place. It's a good idea to keep your crypto wallet software up-to-date and to check for new updates as needed so that you can always be confident in the security of your assets.
Do not reuse your passwords
Reusing passwords makes it easier for hackers to access multiple accounts if they obtain your login credentials from one source. Use a password manager to generate and store unique, strong passwords for all of your crypto-related accounts.
Besides, you need to be very careful of the personal information you share online, especially on social media platforms, as this information can be used to target you with phishing scams.
Avoid public Wi-Fi
Public Wi-Fi networks are not always secure and can be easily hacked. If someone gains access to your device while using public Wi-Fi, they can steal your cryptocurrency wallet information and access your funds with ease.
There’s also an attack known as the “man-in-the-middle” attack in relation to public Wi-Fi. These networks are often vulnerable to a sort of attack where hackers can intercept and manipulate data being sent over the network, which can result in the loss of funds from your crypto wallet.
Use a VPN when using online wallets
As mentioned above, public Wi-Fi networks are not secure. However, if you must connect to them, use a VPN to protect your connection. This technology can encrypt your internet connection, preventing hackers from accessing your personal information such as login credentials, IP address, location, and even your secret phrase.
Moreover, a VPN can hide your internet activity, making it harder for governments or corporations to unnecessarily monitor or track your crypto transactions. In essence, a VPN maintains a high level of privacy when using the internet.
Closing thoughts
Protecting your cryptocurrency wallets from hackers is crucial to ensuring the safety of your funds. Some effective methods discussed include using two-factor authentication (2FA), using a hardware wallet, keeping your software and security measures up to date, being cautious of phishing scams, using unique and strong passwords, avoiding public Wi-Fi, and using a VPN when using online wallets. By following these simple tips, you can increase the security of your cryptocurrency wallet and help protect your funds from malicious attacks.
