Headlines are filled with reports of hacked exchanges, wallets, and crypto custodians. One notable incident was the Poly Network Hack in August 2021, where hackers stole assets worth $610 million. Despite the value of one Bitcoin exceeding that of an ounce of gold, it remains vulnerable to cyberattacks due to its nature as a few lines of code. Consequently, safeguarding your crypto assets is just as crucial as acquiring them.
A secure crypto wallet is the ideal storage solution for your digital assets. However, without adequate security precautions, even wallets can become susceptible to attacks. To improve blockchain wallet security, use the tips below.
How to Secure Cryptocurrency Wallet?
#1 Wise Password Management
Setting a strong password, safely storing it, and changing it frequently are important measures. When selecting a password for your crypto wallet or any sensitive site, opt for something unique instead of reusing existing passwords. Ensure that your password does not contain any personal information. Storing passwords in a password manager like Kaspersky Premium with built-in Password Manager is more secure than saving them in your browser. It’s a good practice to regularly change your password, for example, every six months.
#2 Use a VPN
To safeguard crypto assets, you must be sure that no one is watching you and cannot intercept your data. The purpose of VPN for crypto trading is to prevent outsiders from accessing your data. Whoever tries to interfere with your channel will not succeed. With a VPN for secure blockchain trading you can encrypt all your data. VeePN comes to mind, which has 256-bit military-grade encryption. Even in the free trial period, it implements robust security measures that protect against various attackers.
#3 Choose a Trusted Wallet
Selecting a trusted wallet is the first step in securing your cryptocurrencies. With a wide range of wallets available, it is crucial to exercise caution and thoroughly research before making a decision. Opting for a reputable and well-established wallet provider can substantially reduce the risk of compromising your crypto assets.
Hardware wallets like Trezor or Ledger are widely recognized as one of the most secure options. These wallets store your private keys offline, mitigating potential online threats. The device never releases the private keys, making it exceedingly challenging for hackers to access your funds. Additionally, hardware wallets often include extra security features, such as secure chip technology and built-in screens, to verify transactions and ensure transaction integrity.
#4 Watch Out for Phishing Scams
To maintain the improved speed and performance over time, you should familiarize yourself with potential threats when interacting with blockchain and crypto wallet infrastructure. In today’s digital landscape, spoofed websites can cunningly replicate legitimate ones, making them virtually indistinguishable. It is crucial to take extra precautions:
Verify URLs: Always double-check website URLs to confirm their authenticity. To enhance security, bookmark your cryptocurrency sites and note that MetaMask also helps by blacklisting MyEtherWallet clones.
Software Downloads: When obtaining software, especially for critical purposes like cryptocurrency, verify its source and authority.
Buy Directly from Manufacturers: When acquiring hardware crypto wallets, it is safer to purchase them directly from the official manufacturer. Beware of resellers, as unfortunate individuals have lost their life savings when a seller on eBay is tampered with a hardware wallet, extracting the recovery seed, and repackaging the device.
Consider Wi-Fi Security: When interacting with crypto wallet infrastructure, go beyond URLs and be mindful of potential Wi-Fi vulnerabilities. Either do not use public Wi-Fi networks at all, or install a free VPN extension and connect only through it. But you should be careful with personal Wi-Fi networks.
#5 Enable Two-Factor Authentication (2FA)
Enabling two-factor authentication (2FA) enhances the security of your crypto wallet by adding an extra layer of protection. Users are required to provide an additional piece of information, typically a unique code generated by an authentication app or sent via SMS, in addition to the password. This additional factor significantly reduces the chances of unauthorized access, even if someone manages to obtain your password.
Most popular crypto wallets and exchanges support 2FA, and it is highly recommended to activate this feature for your accounts. To set up 2FA, download an authenticator app on your mobile device, such as Google Authenticator or Authy. Link the app to your wallet or exchange account, and it will generate a unique code that changes every few seconds. When logging in or performing sensitive transactions, you will be prompted to enter this code and your password.
#6 Backup Your Wallet
Creating backups for your wallet is a crucial step in safeguarding your crypto assets. By backing up regularly and storing them securely, you provide a safety net against device failure, loss, or theft. It is important to follow the specific instructions provided by your wallet software when backing up. Most wallets offer a backup option within their settings or menu, usually involving creating a file or recording a series of words called a recovery seed or phrase. This recovery seed is a unique and vital piece of information that can restore your wallet on a new device or in case of data loss.
Even if you use cold wallets to store crypto assets, you still need to protect your entire infrastructure. If you do not take care of secure authorization on the exchange where you deposit funds, you can still become a victim of scammers. Protecting all crypto wallets is a top priority and the methods listed above will help you achieve your goal.