Along with the rise of cryptocurrencies, crypto-related cyber attacks are also growing.
The good news? Exchanges and wallet providers are becoming better at protecting themselves from attacks. In recent times, the total value of crypto stolen has decreased.
However, that doesn’t mean you shouldn’t learn how to protect yourself. While the amount of crypto theft is decreasing — the number of individual attacks is still on the rise. With that in mind, Bitcoinsensus offers you crypto wallet security tips with the guide: 10 simple steps to safeguard your crypto wallet.
Step 1: Choose the Right Wallet (Cold Wallet vs Hot Wallet Security)
There are two types of wallets out there. Hot wallets, the most common and easily accessible type, are a form of wallet that is connected to the internet. A common example of hot wallets are platforms like Trust Wallet or Metamask. They’re also referred to as “software wallets”, due to them… well… being a type of software.
With the introduction of mobile apps – hot wallets are far more easily accessible. They are always within reach, meaning that you can reach your funds at any time. However, this comes with a cost.
There is no other way around it — the bad guys are out there and they are looking to steal your doge, (or any other asset that you own). This means that having a hot wallet also means taking extra steps to keep yourself protected.
This means always keeping good antivirus software on your computer and your phone, running anti-malware programs regularly, and — of course — not clicking any shady link that gets sent your way.
I hate to break it to you but no, the real Satoshi Nakamoto did not pick your email to offer you a 2 BTC reward. Also, I’m pretty sure that you never met anyone named “Buterin” in your life, so, messages from this guy are also a no-go.
In that sense, cold wallets have a big advantage. The fact that cold wallets, A.K.A. “hardware wallets”, are offline means that wrongdoers have no direct way of accessing these funds. If this got your attention, we also have a full tutorial on some of the best cold wallets in the market, so check it out here.
However, this doesn’t mean that cold wallets are the only way to go. A great way to go about your journey in crypto trading is to pick both. Why not keep most of your funds in a cold wallet, while you occasionally send some money to your favorite hot wallet to be traded or transferred?
Step 2: Use Two-Factor Authentication for Crypto Wallets
Two-factor authentication, or 2FA for short, is a crucial feature to have to safeguard your crypto wallet. Adding another layer of protection between you and bad actors could be the deciding factor between a long and prosperous trading career and having to explain to your best friend why – out of nowhere – you’re suddenly “not that into crypto right now”.
We get it, two-factor authentication can be annoying. But modern applications like Authy and Google Authenticator make this slight inconvenience super quick, and most importantly, safe.
Step 3: Protect Your Private Keys
Your private key is the alphanumeric string of numbers and words that belong to you, and only you. Keeping this information private is very important because if it lands in the wrong hands, you can say goodbye to your funds.
Never share your private keys with anyone, and to ensure even better results: never share your private key with anything that is connected to the web. A good rule of thumb is to store your private key in things like an encrypted hard drive, or even write it down and keep it in a safe in your home.
Step 4: Regularly Update Your Wallet Software
Outdated wallet software can leave your cryptocurrency vulnerable to cyber attacks. Hackers exploit known vulnerabilities in old software versions, potentially gaining unauthorized access to your funds.
To prevent crypto wallet cyber attacks, it’s crucial to regularly update it. Set up update notifications by enabling automatic updates if available, or subscribe to email and in-app alerts from your wallet provider. Regularly check official channels for announcements on updates and security advisories to stay informed and protected.
Step 5: How To Avoid Phishing Scams
We briefly mentioned this topic a little while ago, remember? Vitalik Buterin is not trying to slide in your DMs.
Phishing scams often target crypto users through deceptive messages via email or social media. Also, a common tactic of scammers is building mirror pages that imitate reputable websites like Google, Instagram, or even your wallet’s login page to try to get you to input your login information on these fake pages.
How to avoid crypto wallet phishing scams? Always be vigilant of unusual messages, and always triple-check URLs before clicking them. A good tip is to always check for the URL security protocol “HTTPS” in these links. But either way, when in doubt, just don’t click them.
It is for this reason that having two-factor authentication and a strong password is so important if you want to protect your wallet. More on passwords next.
Step 6: Use Strong and Unique Passwords
Picking a good password is yet another step towards a super secure space for your cryptocurrencies. Because of that, passwords like MyDogLenny123 — or 123myDogLenny321 are not the best options.
You can always go all out and randomly generate a string of words and numbers that will be nearly impossible to decipher. However, the downside is that you will likely never remember this password off the top of your head.
Fortunately, you can always reach a middle ground for a password that will be both secure and memorable. For instance, you can pick something familiar to you, and add numbers and symbols to this word to make it unique. For instance, the password ‘MyDogLenny’ could become ‘##L09e34N07n67Y095$$’.
Step 7: Avoid Public Wi-Fi When Accessing Your Wallet
Unfortunately, free Wi-Fi can become very costly if you fall into the hands of hackers. Often, unsecured networks are vulnerable to hacking, allowing cybercriminals to intercept your data and potentially gain access to your private keys and sensitive information.
A good way to circumvent this is to use VPNs like NordVPN. These Virtual Private Networks protect your internet connection via encryption — making it a lot more difficult for the bad guys to intercept your data.
Step 8: Backup Your Wallet
Imagine waking up one day and realizing that your computer or phone has gone kaput, taking all your data with it. As far as morning surprises go — this one has to be at the bottom of the list, especially if access to your wallet goes down with the phone.
Regular backups are your safety net against tech mishaps or human error — allowing for more secure cryptocurrency storage. Think of it as your “crypto insurance”—it’s not flashy, but when you need it, you’ll be glad it’s there.
Step 9: Monitor for Common Crypto Wallet Security Mistakes
Unfortunately, even the best of them make mistakes. However, there are ways to mitigate the severity of these crypto wallet security mistakes — giving you a better chance to protect your funds.
With that in mind, here is a quick list of common crypto wallet security mistakes:
- Reusing Passwords: Reusing the same password across different platforms and applications is definitely a no-go.
- Skipping Firmware Updates: Failing to update your hardware wallet’s firmware can leave it vulnerable to security flaws that have been patched in newer versions.
- Exposing Private Keys: Accidentally exposing your private key or seed phrase by taking a screenshot or storing it in an insecure location.
- Using Unsecured Devices: Accessing your wallet on devices that are not secured with up-to-date antivirus software and firewalls can expose you to malware and hacking attempts.
- Ignoring Browser Security: Using outdated or untrusted browser extensions and plugins can be exploited to steal your wallet credentials.
Step 10: Educate Yourself and Stay Informed
Keeping yourself up to date with the latest trends in security is always important. Fortunately, this guide to keeping your crypto wallet safe should be plenty of help. Also, Bitcoinsensus is always sharing guides and tutorials which you can check out here.
Conclusion
Keeping your crypto safe requires some work, but it definitely pays off when compared to the alternative. Following these 10 steps—choosing the right wallet, using 2FA, protecting your private keys, keeping software updated, avoiding phishing scams, setting strong passwords, steering clear of public Wi-Fi, backing up your wallet, avoiding common mistakes, and staying informed—you can significantly reduce the risk of cyber attacks.
In cryptocurrency trading, security should always be the top priority. After all, it is better to lose money choosing a trade that didn’t go your way than outright having it stolen from you. Start implementing these tips today and safeguard your crypto wallet to enjoy peace of mind while trading and investing.
As a last note, our Legends Community teaches you everything about cryptocurrency trading — including strategies and market insights, risk management, profit maximization techniques, and a lot more, check it out here!
