How to Protect Cryptocurrency from Hackers
The rise in cryptocurrency values has made it a prime target for hackers. In many ways, it is more lucrative than stealing a credit card or bank account information because many people are new to crypto and do not have robust security protocols in place. If you have crypto, you need to know how to protect your assets when using a cryptocurrency exchange.
Rise in Hacking Cryptocurrency
According to Forbes, nearly 82,8135 crimes involving crypto were reported in 2020. Estimates are that these crimes involved nearly $1.9 billion and affected investors from individuals to large corporations. The main vulnerabilities are through cryptocurrency wallets or exchange providers. These exchanges allow you to trade currency online, and they are vulnerable in many of the same ways as traditional banking and financial information.
The most common form of hacking involves cybercriminals using sophisticated software to gain access to a person’s digital wallet and transfer assets from them without their knowledge. Securing your wallet should be one of your first concerns when using a crypto exchange. Another form of crime involves sham websites that promise to do crypto investing for you, but they are actually only stealing your assets.
6 Tips for Keeping Your Cryptocurrency Safe from Hackers
1. Choose a Reputable Exchange
The first tip is to make sure you use a reputable exchange like Coinbase, Gemini, or Kraken. You can find many smaller exchanges out there, but they often do not have the security protocols of the larger exchanges. If you decide to use an exchange, be sure to do your research and only use those that have a good track record when it comes to security.
2. Use a Cold Storage Wallet
Hot wallets are what you use when you want to make an exchange. They are vulnerable to attacks, just like any other Internet transaction. A cold wallet is a physical device that does not connect to the Internet and cannot be hacked. You should store the currency that you do not want to use in your cold wallet and only transfer the amount to your hot wallet that you want to use. You should never keep all of your crypto in your hot wallet.
3. Never Post Your Phone Number on Social Media
One of the most common scams involves porting your phone number and using it to hack your account and surpass two-factor authentication. Hackers will search social media for conversations involving crypto that have a phone number listed. They will call your carrier and convince them to transfer your phone number to them. The hacker will then use it to change your username and password and steal your crypto.
4. Secure Your Internet and Device
The next most important piece of advice is to make sure your Internet connection and device are secure. You should have robust malware detection, and you might want to consider a VPN when accessing your crypto account. Make sure you use a long, secure password for your crypto account and any other account that you access using your personal computer.
5. Use a Different Password
With hacking becoming increasingly commonplace, it becomes more important to use a unique, secure password for every account. The last thing you want is for someone to hack a social media account and be able to access your banking information or crypto account. Passwords for critical information should be as long as possible and random. In today’s world, convenience should no longer be your first concern, and you should adopt a security-first attitude in all your online interactions.
6. Diversify Your Wallets
If you keep large amounts of crypto, it might be good to spread it over multiple wallets. That way if one of them is hacked, you will not lose everything. Unlike money in your bank that is FDIC insured, money in your crypto wallet is not. Once it is gone, then you will not be able to get it back.
The main thing to keep in mind when it comes to crypto is that you should think about security from the time you set up your account. The world of crypto security is complex, and it is one where you cannot be too vigilant. Having a professional perform a security audit can be one of the best investments you can make to protect your future earnings.
Perspective Omni Media Provides Cryptocurrency Security Solutions
Keeping your crypto wallet secure can be a lot of work, and new threats continue to develop. Staying on top of these changes means continually monitoring new threats and finding out how to protect your account against them. Contact Perspective Omni Media, and we can provide threat analysis and solutions to help you keep your crypto safe from hackers.