As cryptocurrencies become more popular, related scams are also on the rise. Crypto wallet attackers and scammers use tricks like phishing emails and social engineering to target unprotected crypto wallets.
If you're a cryptocurrency owner, it’s important to follow some best practices to ensure your crypto wallet security. Here are the top 7 tips for securing your Bitcoin and crypto wallets from potential hacking threats this year.
7 Tips to Ensure Your Bitcoin and Crypto Wallet Security
Keep Off Social Media
A significant challenge with the impact of social media on the crypto community is the prevalence of individuals attempting to trap you in a scam. A report disclosed that consumers in 2021 lost around $770 million to scams on social media, with Facebook and Instagram at the forefront.
It’s wise not to rely on investment advice from an influencer because you never know the facts. Avoid interacting with anyone you don’t know personally on social media, specifically regarding money matters.
Use a Trustworthy Exchange
Before using a BTC to USD converter for any transactions, be aware that the security levels of exchanges can vary significantly. Conducting thorough research to identify which cryptocurrency exchanges have previously been breached is crucial. If an exchange has been hacked, it suggests weak security measures or existing security flaws, potentially jeopardizing your investment.
Protect Your Financial Privacy
Boasting about your cryptocurrency investments is a sure way to put them at risk. It's okay to inform a few trusted friends or family members about your tokens, but publicizing this information is not advisable.
Blockchain thrives on confidentiality and anonymity. Let your tokens remain in a secret location known only to you. If you broadcast your financial investments, there's a chance that someone might attempt to access your wallet and steal your coins.
Set Unique and Strong Passwords
A 2020 survey by Digital Guardian reveals that 61% of participants confessed to using identical passwords for multiple websites, with one-fifth of them acknowledging they had experienced an online account breach. Simultaneously, 89% of those surveyed expressed confidence in password management strategies. However, reusing the same password across different platforms is strongly discouraged and is one of the most detrimental practices for online account security.
Creating intricate, unique passwords and updating your crypto assets a few times annually is recommended for securing your crypto assets. If remembering your passwords is challenging, avoid storing them as plain text. Instead, opt for a secure password manager.
Enable Multi-Factor Authentication
Apart from using strong passwords,multi-factor authentication (MFA) is crucial to secure your accounts. MFA creates an advanced protective barrier for your account by using separate verification credentials, such as a password, biometric data, or security token. The concept of MFA revolves around the principle of “possession and knowledge”, implying that you remember your password and possess a token, biometric information, or push notification.
When configuring MFA, you usually have the option to choose between a two-factor authentication (2FA) app push notification or SMS. Generally speaking, 2FA is considered more secure because if a hacker manages to get your SIM card, they can receive the notification. SIM swapping is a frequently used technique by attackers to gain unauthorized access to accounts.
In case of phone theft, immediately contact your service provider to deactivate your old SIM card. If you suddenly find yourself unable to use data or make calls or texts on your phone, you might have been targeted by a SIM swap. To safeguard against such scenarios, request your service provider to implement a SIM card lock.
Create Crypto and Bitcoin Wallet Backups Files
As a general guideline, always keep your crypto or Bitcoin wallet‘s private keys in offline storage to prevent hacker access. It's also crucial to maintain offline backups of these keys.
Moreover, it's advised to keep a separate backup of your keys outside your residence. This ensures you can still access them if a disaster like a fire, earthquake, or any other incident compromises your home's safety.
While it may seem unusual, one suggested location for storing your private key backup is your bank's safe. Naturally, this should serve only as a backup – you should always be able to access your private keys conveniently.
Be Aware of Phishing Attacks
A cryptocurrency trading platform, Wormhole, lost over $320 million after a cyber attack in 2022. This illustrates that no matter how secure, entrusting your cryptocurrencies to any online exchange can always involve risks.
If you’re wondering how do hackers gain access to crypto wallets, phishing is a common trick used by them. A phishing assault is a deceptive tactic used by hackers where they fool you into submitting your login details on a seemingly genuine website. For instance, an email from your cryptocurrency exchange may arrive, urging you to promptly update your username and password due to a security breach in your account.
The website seems authentic, but it's not the link for that exchange. Always ensure the link is HTTPS and belongs to the correct website. It's crucial to safeguard your digital currencies in offline and online wallets to better manage potential risks.
To Wrap It Up
Digital scams and thefts are common nowadays. By following some smart practices, you can keep your crypto wallet safe and avoid scams. This article shares some basics to get you started in the world of cryptocurrencies. We suggest keeping up with learning about this industry because the more you know, the safer you'll be.