Grace Malik 
The crypto industry has grown substantially over the years, attracting both crypto investors and hackers seeking access to the purses of crypto enthusiasts. With the advancement of malware technologies, cybercriminals now have numerous methods to access a person’s wallet.
You can prevent hackers from gaining access to your wallet if you take the necessary precautions. To prevent criminals from accessing your cryptocurrency these hackers, you must understand how wallet security can be breached. This article outlines the top eight crypto security best practices to prevent cybercriminals from accessing your cryptocurrency wallet.
However, let’s first discuss why hackers target Cryptocurrencies.
Why do Hackers Target Cryptocurrencies?
The crypto industry has grown substantially over the years, attracting both crypto investors and cybercriminals seeking access to the purses of crypto enthusiasts. With the advancement of malware technologies, cybercriminals now have numerous methods to access a person’s wallet.
You can prevent hackers from gaining access to your wallet if you take the necessary precautions. To prevent criminals from accessing your cryptocurrency portfolio, you must understand how wallet security can be breached. This article outlines the top eight crypto security best practices to prevent cybercriminals from accessing your cryptocurrency wallet.
However, let’s first list out the topmost reasons why hackers target Cryptocurrencies.
- Anonymity
- Financial advantage
- Permanent transactions
- ICOs – Initial coin offerings.
- Exploitation of Cryptocurrency security vulnerabilities
- Smart Contract vulnerabilities
- Lack of governance
Although hackers target cryptocurrencies, the security measures implemented by reputable platforms, individuals, and the broader cryptocurrency community continue to improve over time. Nonetheless, cryptocurrency consumers must remain vigilant and proactively protect their digital assets.
How do Hackers Compromise Your Crypto Wallet?
Understanding how wallet security is breached will enable you to implement crypto security best practices that prevent criminals from accessing your wallet. The security of your crypto wallet can be compromised in the following ways, allowing hackers to obtain access:
- Phishing
- Malware
- SMS Verification Compromised
- Theft of Secret Keys
Phishing
Phishing is one of the most common methods hackers use to gain access to your pocketbook, and it is highly effective once a victim falls for it. Hackers construct websites and emails that appear identical to the originals and use them to defraud unsuspecting individuals of their investments by requiring them to enter sensitive security information.
Always verify the website you are visiting to ensure you are in the correct location. Verify that the site has an SSL certificate (the padlock icon at the upper left of the link) to ensure that the information you enter is encrypted.
Malware
Even though malware is one of the oldest hacking techniques, it remains effective if permitted to flourish. Infecting a user’s device with keyloggers allows hackers to keep track of the passwords and PINs the user enters on their device.
Malware can indeed hack your crypto wallet as hackers also use cross-scripting to take sensitive information by redirecting users to a different website.
SMS Verification Compromised
Using surveillance or SIM-Card cloning, hackers can intercept the 2FA verification process and use it to access your cryptocurrency wallet. Increasing the security of your device and avoiding public WiFi will prevent hackers from blocking your two-factor authentication process.
Theft of Secret Keys
Once someone has your crypto wallet’s secret keys, it is straightforward for them to access your wallet. Both your private and public keys should be protected, and only you should have access to them, to prevent unauthorized access. Avoid crypto-related transactions that require you to reveal your crypto private keys to a third party, as doing so can only result in scandal.
Protect your Cryptocurrency from Hackers with These 8 Tips
Here are our very top eight tips to protect your cryptocurrency from hackers:
- Utilize Multiple Wallets
- Use A Safe Internet Connection
- Change Passwords Frequently
- Watch Out For Phishing
- Protect Your Local Devices
- Utilize A Cold or Hardware Wallet
- Enable dual-factor authentication
- Be wary of public WiFi networks and employ a VPN.
Utilize Multiple Wallets
Do not store all of your cryptocurrencies in a single wallet. For instance, you should have a wallet for storing airdrops, one for daily transactions, and one for your primary portfolio.
This is one of the most effective methods for minimizing the impact of any attack on your cryptocurrency wallet. Your cryptocurrency investments should be dispersed across multiple wallets to prevent catastrophic losses.
Use A Safe Internet Connection
Using a public WiFi network or an unsecured internet connection is one of the ways a criminal can gain access to your device. While trading online or using your crypto wallet, use a VPN and a secure internet connection for utmost security. A VPN aims to protect your browsing activities from hackers and allow you to alter your IP address and location.
Change Passwords Frequently
When you use the same password in multiple locations or websites, it may be very simple for hackers to predict your password and gain access to your cryptocurrency wallet.
Changing your password frequently and using complex passwords is essential. In addition, use two-factor authentication (2FA) if it is available on your wallet or device to ensure the highest level of security against hackers. You could acquire an online password manager that can continuously generate highly robust passwords to ensure you do not reuse passwords.
Watch out for Phishing
Phishing is another method by which cybercriminals gain access to individuals’ crypto wallets and take their cryptocurrency holdings. Be wary of malicious advertisements and emails you click on, as hackers use them to steal cryptocurrency from unsuspecting users.
Hackers create an email or advertisement that appears to be from the original crypto company to trick individuals into entering their security keys and other sensitive data.
Protect Your Local Devices
When your device, be it a PC or a mobile device, is not protected, it is simple for someone to access your crypto wallet and transfer your cryptocurrencies to another wallet.
In addition, firewalls and anti-virus software should be installed on your device to prevent malware and cyberattacks. If your device has fingerprint or face detection capabilities, you should activate them for utmost security.
Utilize a Cold or Hardware Wallet
You can use two methods to store your cryptocurrencies: a hot wallet and a cold wallet. When using a cold wallet, the likelihood of a criminal gaining access to your portfolio is nearly nil. A hardware wallet is the most viable option for storing your private keys and other sensitive information.
In fact, hardware wallets offer numerous benefits, such as two-factor authentication, which protects your private key from hijacking attempts. Cold wallets for cryptocurrencies are encrypted, making it impossible for anyone other than you to access your private keys.
These cold wallets are a more secure alternative to heated wallets and are less susceptible to cyberattacks. Cold purses also have a disadvantage. If a user loses their wallet passphrase, they may lose access to their cryptocurrency. Nonetheless, it is more secure than flash wallets, which are more susceptible to cyberattacks.
Enable dual-factor authentication
Two-factor authentication (2FA) increases security by requiring a second code in addition to your password. When logging in from an unfamiliar device, this can be sent via SMS or generated by an app on your phone. If someone compromises your password, they won’t be able to do much without the 2FA code. Ensure that two-factor authentication is enabled on all cryptocurrency exchange accounts and purses.
Be wary of public WiFi networks and employ a VPN
Avoid accessing cryptocurrency accounts or conducting financial transactions on public WiFi networks, as they may be susceptible to surveillance and hacking. Consider using a virtual private network (VPN) for added security if you need to access your accounts while on the move.
A virtual private network (VPN) is a technology that encrypts a user’s online traffic, thereby altering their IP address and location. VPNs are a simple way to shield users’ online data and browsing activity from hackers and other third parties.
Conclusion
Scams involving cryptocurrencies are unfortunately prevalent in the digital sphere, so it is essential to be vigilant and take the necessary precautions to avoid them.
Understanding how your crypto wallet can be compromised, such as through phishing, the theft of private keys, and compromised SMS verification, will assist you in securing your wallet more effectively. Using a cold wallet, having a challenging and complex password, and utilizing a secure internet connection are methods to protect your cryptocurrency wallet from hackers.
However, suppose you have been the victim of fraud. In that case, it is imperative that you act swiftly by reporting the scam, changing your passwords, notifying your bank or credit card company, and, if necessary, seeking legal counsel.
Keep in mind that securing your cryptocurrency requires a proactive approach. By implementing these recommendations and maintaining vigilance, you can significantly reduce your cryptocurrency’s likelihood of being compromised.