Since blockchain networks are quite difficult to compromise, malicious attackers in the crypto field are often focused on crypto wallets, as they are a much easier target to hack. As of 2023, crypto wallet cyber attacks have become frequent and dangerous. Therefore, crypto owners must be mindful of their wallets and do their best to secure them from outside threats. This article presents the most pressing threats to crypto ownership and the strategies crypto owners can utilize to secure their funds.
- The best practices to avoid crypto wallet theft are strong passwords, cold wallets, backups and 2-factor authentication.
- Additionally, avoiding public Wi-Fi, staying aware of phishing threats and checking the reputability of wallet providers is crucial.
Best Ways To Secure Crypto Wallets
While the malicious threats have risen on the crypto wallet market, there are numerous ways to stay secure in this environment.
Utilize Strong Passwords
A strong password is necessary for any sensitive application, and that goes double for crypto wallets. Sturdy, complex passwords ensure that attackers will not have a good time trying to hack it. Remember, most users believe that their passwords are quite strong, but that is not often the case. Some seemingly complex passwords are straightforward to crack.
Therefore, checking your password strength with password tester software is important to verify its aptitude. Users can utilize various password-saver applications if the final password is too much to handle in terms of memory.
Don’t Use Questionable Wi-Fi Networks
Public Wi-Fi networks are culprits of numerous crypto thefts, displacement and fraud. Some of these networks can swiftly steal login information and deliver it into the hands of hackers. After that, a given crypto wallet will probably be compromised and displaced.
Thus, it is essential to avoid accessing crypto wallets with public Wi-Fi. Even in the most pressing situations, it is advisable to wait and access the crypto wallet securely instead of taking chances with public Wi-Fi.
Be Aware of Phishing Threats
Phishing scams are one of the most challenging ones to identify to unaware users. With these malicious tactics, users could access a seemingly legitimate website or application, asking them to provide financial information for various purposes. At a single glance, there’s nothing wrong with a given platform. In many cases, it may even be a reputable application (Like PayPal or Wise).
However, in actuality, these applications are traps that simply look like the original product to fool customers and retrieve their information. Now, phishing websites and apps are not perfect replicas of the real thing, which means that with a careful approach, most customers can swiftly detect some inconsistencies in the software. So, it is essential to stay vigilant and verify that the website demanding your financial info is actually trustworthy and legitimate.
Have 2-Factor Authentication in Place
2-factor authentication effectively creates a second layer of protection around the crypto wallet account. Utilizing the authenticator applications, 2-factor ensures that a variable second password secures the wallet’s integrity. These variable passwords can change in a matter of seconds, giving attacks little to no time. Today, most crypto wallets have 2-factor authentication built into their platform, making adopting this diligent practice simple.
Verify the Reputability of Your Crypto Wallet Providers
While numerous crypto wallets are on the market, only some have adopted appropriate security measures and safeguards to reinforce their platforms. Therefore, verifying the track record, security aptitude, and general reputation of crypto wallet providers is essential. After all, security is by far the most crucial aspect of any crypto wallet, and it is advisable to go with a supplier that takes cybersecurity matters very seriously.
Backup Your Online Crypto Wallet
Crypto wallet backups are a great strategy to minimize losses even in the worst-case scenarios. With backups, no matter what happens to the crypto wallet, users can fall back on the most recent backup and avoid losing significant finances.
However, maintaining regular backups requires a routine approach. Users often forget or simply disregard the importance of backups until it is too late. Remember, while crypto wallets can be safe 99% of the time, the 1% chance of displacement is all it takes to cause permanent crypto losses without a chance of retrieval.
Utilize Several Wallets for Your Funds
When it comes to crypto assets and digital assets in general, it is always wise not to put all eggs in one basket. Utilizing several crypto wallets to mitigate risks is a good strategy for users that wish to get an extra layer of security.
While this approach won’t save the compromised crypto wallet assets, it guarantees the safety of the remainder portfolio. This way, investors can be assured that one corrupted crypto wallet will not cause the loss of the entire crypto portfolio.
Update Your Wallet Software Regularly
Last-generation crypto wallets come with numerous security features and protection benefits, including the latest updates in the cybersecurity field. However, all of those features won’t be there to secure the crypto assets without appropriate updates. Remember, the field of cybersecurity is being updated constantly, since malicious attackers find new dents in the cyber armor almost every month.
So, even the smallest security updates matter in the grand scheme of keeping your crypto assets safe. Therefore, it is essential to update crypto wallet security software regularly. Frequent patches and fixes will ensure that even the latest malicious techniques are fruitless against the updated crypto wallet security.
Check the Recipient’s Address Carefully
While blockchain’s decentralised and anonymous nature is great for the free market, it presents some obvious shortcomings in terms of security. The most prevalent issue is sending the crypto funds to the wrong address. In this case, users have no effective ways to retrieve the lost funds, as there is no way to discover the recipient’s identity. Even if the recipient is found, they will not be liable to return the funds.
Thus, it is crucial to check the recipient’s address every time and verify that it is correct. Even with the latest security measures in place, crypto wallets won’t be able to help out if the recipient address is simply wrong.
Use a Cold Wallet Storage
Lastly, adopting the cold wallet might be the best way to ensure the maximum security of crypto funds. Unlike regular hot wallets, cold wallets are completely remote and offline, separated from digital threats. With cold wallets, cyberattackers will have to steal the physical device, crack the encrypted code and other layers of security. Naturally, that is exponentially more difficult than standard malicious practices.
However, users must be mindful of their cold wallet devices. Remember, if cold wallets are stolen, lost or corrupted, there are no effective ways to retrieve the lost funds.
Keeping crypto wallets safe from various threats comes down to being diligent and adopting risk-averse strategies. The security tips presented above are a great way to fortify the protection of crypto assets, but the most essential security measure is still simply being careful with one’s crypto possessions.