The popularity of cryptocurrencies has gone through the roof in recent years. Blockchain technology, which is the backbone of most cryptocurrencies, is well suited to bring a new level of transparency, security, and stability to transactions. However, with that comes a higher risk of being hacked. The most common avenue for hackers to attack is through exchanges. These are platforms that let people buy, sell, and store cryptocurrencies like bitcoin, Ethereum, and litecoin. These exchanges have set up their security systems as a central focal point of their business model. They are also designed to let third-party users deposit money into their own accounts. Here are the seven ways to protect your digital assets:
1. Take a hybrid approach to digital wallet security:
Hybrid wallets are digital wallets that are a combination of hot and cold storage. This means that part of your funds is stored in an online system with high levels of security, and the other part of the money is held offline in cold storage. That way, if the online wallet gets compromised, only a small percentage of your digital assets would be at risk. Hybrid wallets are also flexible enough to allow users to move their assets from one wallet to another depending on their own specific needs.
Also Read: Five Best Ways to Identify Legit and Safe Crypto Slot Sites
2. Two strong passwords are key:
Cryptocurrencies are regularly being targeted by hackers. Most of the time, the hackers try to get hold of the private keys that allow users to access their digital wallets and transfer their money. Passwords are, therefore, a crucial piece of information in keeping this data safe. Most users assume that they don’t need to be very complex because they are only accessing just the occasional transaction. However, it is important to create passwords that can defend against hackers with brute-force and dictionary attacks.
3. Work with reputable cryptocurrency wallets, exchanges, brokerages, and mobile apps:
Newer cryptocurrency wallets, exchanges, and brokerages are popping up on the market every day. But not all of them are viable for long-term use. It is therefore important to work with only reputable enterprises that have been in business for a longer period of time. These should be able to show past records of successful transactions without errors or security lapses.
4. Protect yourself from mobile phishing:
It is very easy for mobile phishing attacks to target a person’s digital assets. That is because they can easily access the device of an unsuspecting person and move their funds to another wallet. To guard against this, you should use two-factor authentication whenever your mobile device accesses your personal items. This will require two steps before the transaction can be completed: authenticating yourself using a numeric code followed by a personal identification number (PIN).
5. Be aware of how your wallet is used in transactions:
It is very important to monitor the details of your transactions. Many cryptocurrency exchanges and wallet platforms require users to make their purchases from their accounts. This could turn out to be a security loophole because these platforms can then use your account as a regular depositor and use it to drain your digital wallet. The only way this type of scam can be prevented is by regularly reviewing the details of all incoming and outgoing transactions on both mobile apps as well as web-based cryptocurrency wallets. Bitcoin Prime is the perfect place for those who want more information on Bitcoin investment.
6. Avoid sharing the secret key:
The secret key is the most important piece of information that comes with your cryptocurrency wallet. It helps users access their digital assets, keep them safe and make transfers. So there is no way you can share it with other people. If you do have to do so, then at least make sure that the person to whom you are going to give it is trustworthy and will use the information properly. The best idea is to keep it in a secured location that has top-notch security protocols.
7. Skip using wallets hosted by providers:
Online wallets are not as secure as mobile wallets. They don’t necessarily keep your account’s private key in a safe location that is monitored at all times. This is because these providers don’t seek to safeguard your funds from potential hackers and are looking to make as much money from the storage fees and chargebacks that often result from hacking attacks. This also makes it easier for third-party power users who have ill intentions towards your wallet to get hold of the necessary information.
Conclusion:
These seven steps will ensure that your funds are safe and that you don’t lose any of them as a result of an unrequired security lapse. With the pace with which cryptocurrencies are growing, it is important that you educate yourself about how to protect yourself from online and mobile phishing attacks. It is also important to follow security best practices and keep your digital wallet updated regularly.
