It was already tough keeping money safe from cybercriminals. Banks invest millions of dollars every year to enhance their cybersecurity. Even then, they end up losing huge chunks of money due to hacking attempts from some very notorious cybercriminals. If physical money is so hard to protect, imagine how difficult it would be to protect currency that is virtual in the first place.
Protecting cryptocurrency is very difficult, especially considering that all footprints that led to the hack can be deleted digitally. Moreover, cryptocurrency is still unregulated and is even banned in several countries. This means that if it gets stolen, the theft cannot be reported to law enforcement agencies.
This is one of the reasons why special care needs to be taken in order to protect digital currency from the hands of hackers and cybercriminals. If you’re one of those who are looking for ways to keep their cryptocurrency more secure, the following steps are surely going to help you out.
Here are some important recommendations that will help you keep your cryptocurrencies secure on the internet.
Take a hybrid approach to digital wallet security
The best way to keep your cryptocurrency secure at all times is by following a hybrid model when storing it. Most people prefer keeping their currencies on online wallets. But these wallets are not always secure due to their connection on the internet. It is therefore important to keep a bigger chunk of your currency in offline or physical wallets instead while only keeping a small amount in an online wallet. Because these wallets are not connected to the internet, they are more likely to have better security against cybercriminals. In other words, don’t put all your eggs in the crypto basket.
Strong passwords are key
Cybersecurity experts always stress the importance of having stronger passwords. Even then, your password might still get into the hands of the wrong person if you reuse the same password for different accounts and services. You never know when the service suffers a data breach and all the passwords get stolen.
This is why it is better to have multiple passwords for different accounts. As for your wallet, you should make sure to keep a unique password that is also difficult enough for anyone to crack very easily.
Work with reputable cryptocurrency wallets
You will find so many options to choose from when looking for a cryptocurrency wallet. Cryptocurrency is a growing market, and a lot of companies are entering it to offer different types of services. However, not all of these companies are reliable enough to trust with your digital currency.
Even if the product is managed by morally sound people, it still doesn’t mean that it is completely safe from hackers. For a wallet to be trusted, it needs to incorporate the best security practices: it should require multi-factor authentication and offer the strongest encryption.
Only when a wallet offers all of these solutions into one should you trust it with your digital currency.
Protect yourself from phishing
There are many people who use mobile apps to manage their cryptocurrency wallets. Devices such as these are susceptible to getting hacked through phishing.
Phishing is so common these days that almost anyone is able to point out at least one instance when they received a suspicious message or email from an unknown source. These messages are usually clickbait in nature that entice viewers to click a particular link or download a particular file on their device. Performing any of these actions instantly exposes your device to malware that steals all the passwords saved on your device.
If you have a wallet app installed on your phone, it is more likely to get hacked after this phishing attempt. It is therefore important that you understand what phishing is and learn how you can detect it.
Be aware of how your wallet is used in transactions
Those who keep cryptocurrency are also likely to use them to purchase things on the internet. Cryptocurrency is also used in transactions of many kinds. It is important to be completely aware of the processes that relate to these transactions. It is important to use networks and systems that are safe and protected from cybercriminals. Otherwise, even a small mistake can lead to the loss of a big chunk of money.
We recommend that you connect to a secure VPN service before making transactions such as these. Connecting to a secure VPN service, like PureVPN, changes your IP address and ensures your online traffic stays secure and protected through end-to-end encryption. Premium VPN services such as these can also be installed on your router device in order to convert your entire home network into a habitat that is safe from hackers.
Avoid sharing the secret key
Secret keys are used to validate if the person who is sending or receiving the digital coins is actually the owner of the wallet that is being used. You can understand the importance of keeping your secret key a secret. Even its name suggests that it should be kept from the public eye.
It is always recommended that you don’t share your secret key with anyone you don’t trust. Cybersecurity experts even suggest that you should remove all traces of secret keys on digital media and write it on a piece of paper instead. Even then, you’ll need to make sure that this piece of paper is only visible to you and is not exposed to someone else’s eyes.
Skip using wallets hosted by providers
Any wallet that is hosted by a provider might not be the best place to store your digital currency. You never know when the provider suffers a data breach or whether it gets taken over by another entity that might not be as reliable as the original provider was.
The best method to store your digital currency is to use a hardware wallet. These wallets come in the form of a USB device that encrypts and stores your secret key alongside all the relevant details. The method of decrypting this currency is much safer compared to the other methods.
In a nutshell…
The cryptocurrency market is growing at a tremendous rate each day. Although investing in digital currencies might look very enticing, it’s also filled with several risks. It is important to look into all these risks and learn how to stay secure in the crypto market.