The increasing value and popularity of cryptocurrency make it very attractive to hackers. It’s difficult to trace and nab cybercrime because hackers can just easily wipe out their digital footprints after a cyber-attack.
Furthermore, in the absence of government and central bank regulation, investors whose cryptocurrency is compromised have no claims for some sort of legal protection. It is crucial then that all security measures have to be taken, especially that the Internet is still pretty much the Wild, Wild West. One way is to store digital assets in appropriate, safe storage, and this article will be about how to secure a cryptocurrency wallet.
Safety Tips For Your Cryptocurrency Wallet
Cryptocurrency wallets come in the form of software or programs which hold a unique private and public key that allows investors to access their digital assets in the cryptocurrency market. Careful deliberation on how to secure a cryptocurrency wallet is needed. Otherwise, cryptocurrency wallets will be vulnerable to hacking attacks and theft. Maintaining cryptocurrency wallets haphazardly makes these prone to a data breach, with digital assets easily shoveled from a poor investor to a different account.
A secure wallet then is all about the private and public keys’ safety from being stolen and copied and used to get a hold of cryptocurrency. The reputation of the provider of a cryptocurrency wallet is also most essential. Here are some other safety tips:
- Review the nature of your crypto transactions and choose a cryptocurrency wallet that will be the best fit for your needs. If you are only using cryptocurrency for small, frequent transactions like online payments and such, then you can go for a basic hosted cryptocurrency wallet. However, if you are into investing, trading, staking, and lending, then it would be wise to go for wallets that give you more control over your assets, like a non-custodial wallet. Moreover, cryptocurrency in smaller amounts may go for hot storage or hot wallets, while the larger and more long-term digital assets are best secured through cold storage, like a hardware wallet or a paper wallet.
- Keep more than one cryptocurrency wallet. Having explained it in tip number 1, it’s best not to store your crypto eggs in one basket. This classic advice in the physical world also applies in the digital world. Anyway, there is no limit to how many wallets you can create. Just be sure to remember and safe-keep all your passwords and keys.
- Be sure that your cryptocurrency wallet has two-factor authentication. Two-factor authentication or a 2FA asks you for a code before sending, withdrawing, or transferring digital assets. Enabling this gives extra protection for your cryptocurrency. With two-factor authentication, transactions in your wallet won’t happen without your knowledge because you will always be asked for a code before proceeding.
- Be sure that your Internet is secure. Making cryptocurrency transactions while your Internet signal is poor and intermittent may increase the risk of attacks. Also, avoid connecting to public Wi-Fi networks when you are accessing your cryptocurrency wallet. However, even when accessing the Internet from your personal home space and computer may not be risk-free either, so use a VPN that will change your IP address and location and keep it private.
- Encrypt your cryptocurrency wallet. Encrypting your wallet provides an extra layer of protection for your digital assets, on top of enabling two-factor authentication. This involves nominating a password and locking your digital assets if malicious activity is suspected in your account.
- Keep your computer or phone secure. How to secure a cryptocurrency wallet is also largely about accessing it from a secure device. Regularly check that your computer or phone where you access your cryptocurrency has updated virus protection. Using a firewall is also advised.
- Change your password regularly. This has to be a regular practice for every netizen, and not just in cryptocurrency wallets. It is best to have different, strong, random, unpredictable passwords for each wallet. The more difficult it is to read your password, the better.
- Backup your cryptocurrency wallet’s data. You can back up your passwords or keys in separate devices and other offline means like using USBs or copying them on paper and keeping them in a safe place. This way, you can easily recover your account in case your computer or software breaks down. There are also some wallets that allow their users to backup data, but be sure that these are reputable wallet providers.
- Steer clear of phishing. Avoid clicking on links, ads, or emails that you are not familiar with and which sound suspicious. Read domains closely because some phishing attacks are launched through the use of fake domains that sound like trusted organizations.
- Update your software. If your cryptocurrency wallet provider alerts you to update, do so because it would mean your protection from bugs or new virus definitions that change every now and then.
- Choose a multi-signature wallet. This is best for you if you have big amounts of cryptocurrency. Look for cryptocurrency wallets that allow you to use this security feature, where other authorized users are asked to sign before accessing your funds.
- Keep your private key to yourself. Never share your private key with anybody, much like how you wouldn’t share your ATM PIN. The best way is to secure your private keys offline through cold storage like hardware wallets and paper wallets. This way, hackers have no way of accessing these. Learn more about cryptocurrency wallet here!
You may have learned some ways to secure a cryptocurrency wallet, but remember that even by practicing all these tips, nothing can remain foolproof on the Internet if what you hold is increasingly valuable. Hackers will always be on the prowl for any security gap that they can take advantage of. Still, the popularity of cryptocurrency is piquing the interest of governments and civil society, deliberating where and how netizens can be protected from malicious, fraudulent online activities. But until the cryptocurrency market and the whole landscape of the Internet gets to be regulated with laws, you will always have to venture into this exciting treasure trove at your own risk.