However, the most frequent attack is the theft of a crypto wallet‘s private keys. A crypto wallet requires acquiring a private key, which you must safeguard.
Due to security concerns, many individuals have been cautious about investing in cryptocurrencies.
Numerous techniques exist for hackers to steal bitcoin, including obtaining or guessing your password, hacking an exchange platform, and phishing you for information.
Although it is unlikely to be secure against all possible attacks, there are several things you can do to secure cryptocurrencies and lower your risk.
How to Safeguard Your Crypto Wallet?
1. Choose your crypto wallet carefully
Online wallets, often known as “hot wallets,” are user-friendly and do not require expensive hardware investments, but they are susceptible to online hacking or theft.
If you own or plan to acquire a substantial amount of bitcoin, storing it in a hardware wallet offers significantly greater safety and protection than internet wallets.
2. Always use two-factor authentication (2FA)
It is simply too hazardous not to utilize 2-factor authentication for your cryptocurrency wallets. By demanding authentication before account operations such as logging in, withdrawing funds, or sending payments, You improve the protections around your money.
When you enable 2FA, you’ll be alerted immediately if someone attempts to access your wallet.
3. Change your passwords regularly, or use a password manager
Given the volume of hacking incidents, you can anticipate that your credentials will be compromised at some point. Creating a complex password, keeping it secure, and frequently changing it is the bare minimum you can do.
When selecting a password for your cryptocurrency wallet, you should avoid utilizing previously-used passwords. It would help if you kept passwords in a password manager instead of the browser’s native password storage (much safer). Please write it down instead of using the software. Change your password approximately every six months.
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4. Never reveal your seed phrase to anyone.
A seed phrase, often called a recovery phrase, serves as a master password to recover crypto assets if you forget your password or lose your phone or hardware device.
Unfortunately, “forgot password” is not an option. Therefore, if you lose your seed phrase, you will inevitably lose access to your wallet. Keep the seed word out of reach and secure. Jot it down on paper and save it in the exact location as your other vital documents.
5. Regularly backup your wallet
If you lose or break your gadget, what will happen? If you have not backed up your wallet, you may lose your digital valuables forever.
When you back up your wallet, you generate a digital key that enables you to access your wallet if your device is lost or damaged. This digital key is stored externally on the device. Utilize multiple backup devices to facilitate account restoration.
6. Use the multi-signature feature
As the name suggests, multi-signature wallets necessitate transaction authorization via multiple keys, meaning a group of users must sign to approve a transaction. Several suppliers of bitcoin wallets provide this feature, which prohibits unauthorized users from accessing the wallet without the required digital signatures.
Hackers cannot access your wallet and take your crypto assets without this authorization. If you haven’t already, check your wallet to see if this feature is available.
7. The secret of the private key must be protected at all costs.
Consider your private key to be the same thing as your personal identification number (PIN) at the bank. Considering that this is the key to your hard-earned money, maintaining its safety would be beneficial.
One strategy to secure both your wallet and your assets is to store your private keys in a location that is not accessible online. You have the option of using cold storage devices or writing them down on paper while maintaining their confidentiality.
8. Be cautious of phishing
You’d be shocked at how many people fall for phishing, a type of targeted assault in which an attacker appears as a genuine institution to gather sensitive information. To prevent phishing, you should never log in to your bitcoin exchange unless you are confident you are on the right site.
Instead of clicking on a link emailed to you, add the link to your bookmarks or write the URL manually. Additionally, do not reply to messages, emails, or chats requesting personal information. Lastly, always verify the information before submitting funds.