Tips To Secure Your Bitcoin and Crypto Wallets. Security is a significant selling point for blockchain-based technologies and cryptocurrencies. Hundreds of cases have surfaced in recent years detailing the loss of substantial crypto holdings by investors and traders, with a wide range of explanations offered. Malicious individuals can use several methods to target your savings and steal them, such as phishing schemes, exchange hacks, and inappropriate private key management.
As a Bitcoin and cryptocurrency user, you effectively act as your bank. But the biggest drawback, in contrast to conventional banking, is that digital currencies can virtually never be refunded after they’ve left your wallet. Insurance is not available. If you value your cryptocurrency assets, you must take all necessary precautions to ensure their security.
Cryptocurrency Security Depends on Your Wallet
Users must realize that their Bitcoin is more vulnerable in their wallet or exchange than on the blockchain. Your private key is just one piece of information that the supplier can monitor and save. Hackers can gain access to this and use it to steal your money. In tandem with the meteoric surge in cryptocurrency use, competition among digital wallets is heating up.
Users must use extreme caution while choosing a wallet for this reason. Generally, using only Bitcoin wallets created by trustworthy, well-established companies would be best. If you want a reliable cryptocurrency wallet, read our guide or list the top seven non-custodial wallets. After that, though, there are many options for ensuring the security of your Bitcoin and other cryptocurrency holdings. Here are nine pieces of advice that everyone should be aware of and follow.
Avoid Putting All Eggs in One Wallet: Use Cold Storage
This is sound advice for both financial and personal safety when investing. Even in cold or hot storage, you shouldn’t ever store all your cryptocurrencies in one wallet. Secure Your Bitcoin: The optimal strategy is to utilize a variety of Bitcoin wallets and spread your savings around so that they are less vulnerable to a breach in any of them.
We highly advise using cold storage devices. Because they aren’t linked to the internet, these wallets are practically impenetrable to hackers (apart from phishing scams, which are covered in more detail below). Tresor and Ledger are the two most well-known brands.
Be Careful With Your Mobile Device and PC
One weakness that hackers often target is the mobile app that comes with many cryptocurrency wallets. There are three crucial aspects to consider while managing the security of your mobile-based wallets:
- The usage of public Wi-Fi should be avoided at all costs. Hackers can access the linked devices.
- Turn off the feature that upgrades your operating system and apps automatically. Always use the most recent version; however, if a security hole is found, you should wait a while before installing the patch.
- A two-factor authentication (2FA) should be used at all times. This code changes at the last minute, and Google Authenticator is the best software. With this extra safeguard, you must enter a code each time you access your wallet or account. It makes it so no one can log in to your device unless they have it or can hack it.
- Ensure that your apps, particularly the 2FA app, cannot be accessed if your device is stolen by protecting it with a password.
- Google Chrome and other password savers should never automatically save passwords that contain cryptography.
- Preserve your computer and mobile device with a current antivirus program.
Secure Your Bitcoin: Buying a separate smartphone or computer to use only for cryptocurrencies is another option if you’re into trading a lot. This device should not have any apps installed, as apps with unnecessary permissions can attract hackers and cause security breaches.
Following the previous point, removing your Bitcoin from any equipment that requires service is essential. This may involve changes to both software and hardware, among other things. Additionally, it would be best never to lend your gadget to someone else or leave it alone. Nevertheless, Trusted third parties risk inadvertently compromising the device’s security, whether they mean to or not.
Backup Your Wallets
Keep your wallet’s private keys in an offline location at all times. In this manner, hackers will not be able to access them. Copying these private keys, preferably kept separately, is also crucial. In addition, you are holding a spare set of keys in a secure area outside your house. This will ensure you can still get into your home in a disaster like a fire or an earthquake.
It may come as a surprise, but the safe at your bank is an excellent spot to keep your private key. This is just a backup. Your private keys should always be accessible whenever you need them.
Beware of Phishing Scams
Secure Your Bitcoin: Phishing scams targeting this sector have also increased as the cryptocurrency industry grows. Phishing domains that imitate prominent and existent websites, false apps posted to the App Store and the Google Play Store, phony adverts on YouTube, Facebook, and Google, and many more methods exist for someone to undermine the security of your device.
You may be confident that your Bitcoin assets will be gone in minutes, if not seconds when you provide your private key to a phishing website. The worst part is that they are often quite complex, so even seasoned eyes might be fooled by the intricate intricacies. In most cases, they faithfully replicate the original.
That’s why always use your computer’s security measures and avoid visiting untrusted websites. Please check their sources multiple times to ensure the apps you download are authentic and not pirated. We previously shared the story of a customer who fell victim to a scam after installing a fake version of the popular Exodus cryptocurrency wallet. Due to this, he swiftly lost about $80,000 worth of NEO and Ethereum (ETH) currencies.
Double-check the Destination Address
One problem with cryptocurrency is that it can be impossible to retrieve lost coins if the address is entered incorrectly. This is why verifying the recipient’s address three times before sending a payment is crucial. Additionally, malicious software can alter a basic “copy and paste” process, leading you to paste a URL that belongs to the bad guy. To ensure the security of your transfer, providing a little payment before sending the total amount is recommended.
Check the URL Locks
Verify that your browser’s address bar displays an SSL security mark whenever you use an online wallet. You may be sure your browsing is encrypted when you see this secure site seal. A lock icon should be shown next to the URL, and the website’s address should start with HTTPS instead of HTTP.
Avoid Storing a Large Portion of Your Crypto on Exchanges
Secure Your Bitcoin: It is never a good idea to leave most of your cryptocurrency on exchanges, even though many of the largest businesses in the market are reputable and even offer insurance. Because all of your money is effectively lost in the event of an exchange hack, you should never retain more than what is necessary for trading purposes. Many well-known exchanges have fallen prey to hackers, KuCoin being the most recent. In addition to hacks targeting sales, legal action against the platform’s operator can put your cryptocurrency at risk.
Keep Your Holdings Private
The “old-fashioned $5 wrench attack” is a popular expression among cryptocurrency experts. This means that someone may use a $5 wrench from any store to threaten you and steal your secret keys, endangering your health or perhaps your life. The attacker will likely not care if you employ technology like multi-signature wallets.
This is why you must always keep your Bitcoin assets under wraps. It is irrelevant how many bitcoins you possess or even if you have any. If you don’t tell anyone, no one will ever find out.