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Cryptocurrencies are definitely attracting investors but cyber criminals are not far behind either. As per recent reports, there have been numerous attacks on cryptocurrency exchanges and crypto wallets raising one important question: Is the Crypto wallet that you are using right now safe?
This is an important agenda to discuss because the wallet not only holds your currency but also has the crypto private key that allows you to trade online. Since it is the identity you have in the cryptocurrency market, there can be no risks when it comes to the key falling into wrong hands. Consequently, the security of your wallet becomes crucial to protecting digital currency that you have against cyber attacks. Although financial portals by different banks like Chase, Bank of America, etc, have improved dramatically in regards to security features, the same can not be said about crypto wallets that are relatively new in the market.
Service providers promise to have the best protocols in place but there is always something that you can do yourself to secure cryptocurrency only.
Keep Your Currency In Multiple Wallets
Although, in the beginning, you may find it difficult to maintain, multiple wallets can actually serve as a good line of defense against cyber threats. You can diversify your cryptocurrency investments by keeping the currency in different wallets instead of stacking it in a single one. In this way, even if your code falls into the wrong hands, it will mitigate the loss of any breach to the crypto account.
Make Sure Your Internet Connection Is Safe
While making crypto currency transactions between different wallets or from a wallet to bank account, we often forget to consider how secure the internet connection is. This is especially crucial if you have developed the habit of using the internet at public places such as cafes. Experts always suggest that it is better to opt for Virtual Private Network when using crypto wallets for additional security. This is useful because a VPN works by changing your IP location and therefore, your browsing activity would be safe from hackers and scammers.
Choose a Strong Password and Change It Regularly
You are allowed to change the password to your wallet any time. A strong password is crucial to protecting the account against hackers. In addition to that, it is fruitful to develop the habit of changing passwords regularly. Moreover, donāt make the same mistake as Ā¾ of the US population i.e. choosing the same password for multiple accounts and devices. This puts you at the risk of damage to multiple accounts at once if somebody is able to gain access to that passcode. Make sure your passwords are unique for each wallet and that you enable 2-factor authentication for additional security.
Keep Your Personal Device Up To Date
Outdated devices often undergo software degradation and glitches that can make them more prone to viruses and reduce their security against hackers. Therefore, it is important to update them to the latest version so they can fight better against newly discovered vulnerabilities. Moreover, you should install an up-to-date anti-virus program to improve the device's security.
Be Aware of Phishing Scams
Malicious ads, false emails, and fake reward schemes are often used to attract users and they are obviously quite common in the cryptocurrency world. Therefore, it is important to note any suspicious activity and avoid opening unknown links, visiting websites that seem fake, and interacting with users you donāt personally know for exchange of any personal information.
There have been many cases where crypto currency exchanges have been targeted through phishing campaigns. In fact, some major companies have lost millions by falling into the trap of such malicious activities. These attacks are often performed using fake domains who pretend to be an affiliated organization or an employee. They work by embedding malicious links in the documents or content that are sufficient to hack into an account with ease. Since the identity is hidden, it is extremely difficult to find the culprits later on.
The crypto currency industry is evolving and rapidly growing. If you have opened an account and are into digital trading, it is your responsibility to protect the funds in the wallet with necessary precautions. Hopefully, the tips discussed above will be able to guide you on this matter.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.