CNN recently estimated that hundreds of millions worth of Bitcoin have been stolen from digital wallets. Another report by Genesis Block reveals that at least 35% of all Bitcoin mined since 2011 have never been spent mostly because the owners lost it from their crypto wallet. You can no longer afford to take the security of your digital assets lightly.
Here are 5 essential tips for avoiding your crypto wallet being hacked:
A two-factor authentication adds a second layer to your wallet’s security. Even if a hacker was to somehow get your passwords, they still wouldn’t access your wallets without getting access to your phone. If possible use an app based 2FA like Google authenticator. SMS and email-based 2FAs are not very secure because someone can intercept your email or port your phone number on another device.
Watch out for malware
Malware often comes through downloadable files. Hackers can use malware to do all kinds of stuff including reading your keystrokes, granting them private access, and even giving them the ability to read your screen. Be wary of downloading files you get in forums, social media, and emails. If you must download any file, check it with a good antivirus program first just to be completely sure.
Don’t use your exchange crypto wallet
If you are buying cryptocurrency for holding, do not leave it on the exchange crypto wallet. The exchange doesn’t give you access to your private keys, which makes your assets vulnerable to attack. This explains why some exchanges have been hacked and millions of dollars lost. The only cryptocurrency you should have on your exchange is the one you need to use for trading. Store the rest on a secure wallet.
Don’t keep private keys online
If your crypto wallet is on your computer, store your private keys elsewhere e.g. on an external hard drive or on a hardcopy file stored safely in your house or office. This is important because it limits what a hacker can access even if they were to hack into your network. This way, you can take action as soon as you notice any suspicious activity.
Keep away from public WIFI
Public WIFI is now commonplace. Hackers know that the crypto market runs 24 hours so they also know that at some point, someone will access their wallets over public WIFI. Public WIFI is not very secure and is a safe haven for hackers. If you must access your exchange or crypto wallet on the go, do it using your cell phone hotspot. Spending an extra buck on your data plan could end up saving you thousands of dollars.
The security of your digital assets starts with you. Even though using a good crypto wallet will give you extra security, being sloppy with a good wallet will still expose you to attack. A good crypto wallet is only as strong as the user is. As long as you follow the steps outlined above, your cryptocurrency will be safe from hackers.