Over the years, the crypto industry has grown very much and this has attracted the attention of both crypto investors and cybercriminals who want to get into the wallets of crypto enthusiasts. With the advancement of hacking technologies, cybercriminals now have many methods of accessing the wallet of individuals.
With the right steps and procedures, you can prevent cybercriminals from hacking into your wallet. To prevent hackers from accessing your crypto portfolio, you have to learn how wallet security can be compromised. Here are some of the crypto-security best practices to prevent hackers from having access to your crypto wallet.
1. Make Use Of Multiple Wallets:
Don’t put all your cryptocurrencies in one wallet, for instance, you should have a wallet where you store airdrops, where you make daily transactions and the one where your main portfolio is stored. When it comes to how to protect your crypto wallet, this is one of the best ways to reduce the impact of any hacking activity on your crypto wallet. Even your cryptocurrency investments should be spread across multiple wallets to prevent huge losses.
2. Use a Secure Internet Connection:
For questions like “can your crypto wallet be hacked?”, making use of a public Wi-Fi or unsecured internet is one of the ways you can give a hacker access to your device. While trading online or making use of your crypto wallet, use a secured internet and you can make use of a VPN for maximum security. The work of a VPN is to make sure that your browsing activities are kept safe from hackers and it helps to change your IP address and location.
3. Change Your Passwords Regularly:
When you are known to have a particular password in many different places or sites, it may become very easy for hackers to guess your password and access your crypto wallet. Changing your password regularly and having different/complex passwords is one of the answers to “how to protect your crypto wallet”. Also, make use of two-factor authentication (2FA) that is available on your wallet or device to ensure maximum protection from hackers. To ensure you don’t repeat passwords, you could get an online password manager that can always generate very strong passwords for you.
4. Beware of Phishing:
Phishing is another way hackers get access to individuals’ crypto wallets and steal their cryptocurrencies. Beware of malicious advertisements and emails you click on as hackers make use of this to defraud unsuspecting individuals of their cryptocurrencies. Hackers create an email or an ad that looks like that of the original crypto company and then lead individuals into inputting their security keys and other vital information.
5. Secure Your Local Device:
When your device, which may be a PC or mobile device, is not secured, someone can easily access your crypto wallet and transfer your cryptocurrencies to another one. Also, have firewalls and anti-virus installed on your device to prevent malware or cyber attack. If your device has a fingerprint or face detector feature, then enable them to ensure maximum security.
6. Make Use Of a Cold Wallet:
There are two methods you can make use of to store your cryptocurrencies this includes a hoyelt wallet and a cold wallet for cryptocurrency. There is almost zero possibility of a hacker getting into your portfolio when you make use of a cold wallet. Even exchanges such as the Japanese exchange BITpoint confirmed in 2019 that when they had a cyber-attack, their cold wallet was not affected. Cold wallets for cryptocurrency are encrypted and this secures your secret keys, making it impossible for anyone to have access except you.
How Wallet Security Is Compromised
Learning how wallet security is compromised will help you to deploy some of the crypto security best practices to prevent hackers from getting into your wallet. Here are some of the ways the security of your crypto wallet can be compromised to enable hackers to gain access:
Phishing is one of the popular ways hackers can get into your wallet and it is very effective once an individual falls for it. Hackers create sites and emails that look exactly like the original ones and make use of it to defraud unsuspecting individuals of their investments by making them input vital security information. Always check the site that you are visiting to make sure that you are in the right place. For instance, https://yellowcard.com is not the official site of Yellow Card, rather it is https://yellowcard.io. Also, make sure that the site has an SSL certificate (padlock sign at top left) to ensure that all the details you input are encrypted.
Although this is one of the oldest hacking methods, it is still effective if allowed to thrive. Hackers infect the device of an individual with keyloggers which helps them to keep tabs on the passwords and PINs that the individual input on their device. For persons asking “can your crypto wallet be hacked by malware?”, yes it can as hackers also make use of cross-scripting to steal sensitive details from people by redirecting them to another Web page.
● Compromised SMS Verification:
With the use of wiretapping or cloning the SIM-Card, hackers can intercept the 2FA verification process and make use of them to access your crypto wallet. Increasing the security on your device and making sure you are not using a public WiFi will prevent hackers from intercepting a 2FA verification process.
● Stealing Secret Keys:
Once someone has the secret keys to your crypto wallet, it is very easy for them to have access to your wallet. Both your private and public keys should be secured and should only be known by you to prevent unauthorized access. Avoid any crypto-related transactions that require you to show your crypto secret keys to another person as this can only be scandalous.
Right from the inception of the crypto industry, cybercriminals have always looked for a way to access individuals’ crypto wallets and steal from them. Knowing how your crypto wallet can be compromised such as by Phishing, stealing secret keys, and compromised SMS verification, will help you secure your wallet better. Making use of a cold wallet, having a difficult and complex password, and making use of a secured internet connection are some of the ways you can protect your crypto wallet from hackers.
Lisa Scholfield is a Talker, writer, Journalist and news reporter at Republik City News. My background has been in journalism my entire life, writing community news, investigative series, features, reviews and columns. I believe everyday people should pick up the tools of journalism and inform their communities about the news they need to know.