The security of your funds should be your primary concern while trading cryptocurrency. This post will cover the basics of how to keep your cryptocurrency safe from hackers.
Hackers are targeting cryptocurrency more and more, and the best way to keep your funds safe is through security awareness. Several methods can be used to protect your funds, which we will go over here.
Table Of Contents
- 8 Ways To Protect Your Crypto Wallet From Hackers
- 1. Use a Hardware Wallet
- 8. Don’t keep all your cryptocurrencies on one exchange
8 Ways To Protect Your Crypto Wallet From Hackers
1. Use a Hardware Wallet
It is generally considered the safest way to store your cryptocurrency. Hardware wallets are a 1-way path for transferring crypto to and from your device. If a hacker were to attempt to access your wallet, they would need both your hardware wallet, as well as its password. With this being said, there is still the possibility that you could lose or break your hardware wallet, but it has a better chance of keeping your funds safe than any other method out there.
- Ledger Nano S: This hardware wallet supports Bitcoin, Ethereum, Zcash, and other ERC20 tokens. It’s secured via 2FA and has an easy-to-use interface.
- Trezor: This hardware wallet supports Bitcoin, Litecoin, and other ERC-20 tokens. It’s secured via 2FA and has an easy-to-use interface. If you lose the Trezor device it comes with a 24-word seed that can be used to recover your account.
2. Keep your private key offline
The more time you keep your private key offline the safer your funds are. I recommend backing up your private key everywhere you store it to ensure it is secure. Here are some methods of keeping a secure private key:
- Desktop/Web Interface: Encrypt the file with a password, also write down the password and keep it somewhere you can easily access.
- Mobile App: Since blockchain apps use Android’s Keystore format, encrypting this file before storing it on your device makes sure that nobody can intercept it when connecting to your account from another device.
3. Use a strong password for your online wallet
A strong password is the most important thing to keep in mind when storing your funds on an exchange. Make sure to use a long password that has several unique symbols and upper/lowercase characters. This can be done by using a tool such as this website: https://howsecureismypassword.net/ or creating your own using this guide: https://blog.avast.com/strong-password-ideas
4. Have Multiple Wallets
Having multiple wallets is a good way to spread the risk of having your funds hacked while trading. You could have a wallet in multiple exchanges to spread the risk and you also have the option to create a password-protected 2FA wallet with your favorite exchange.
5. Don’t use the same password across platforms
It is always important to make sure that you are using a strong password for all your online accounts. One system that uses passwords for logging in and out of your accounts is 2FA, which will require you to have different passwords for each site. If you use the same password across many sites, hackers can easily identify that account and access it from another browser or device giving them full access to all your funds.
6. Install app updates
Software (apps) are subject to new updates and patches either through errors or vulnerabilities that hackers can exploit while they are being fixed.
To get the most potential out of your cryptocurrency wallet, it is important to keep your software updated. I recommend checking for critical updates and installing them immediately after they are released since they can significantly enhance the security of your device.
Having a virus for your device could be the easiest way for a hacker to get in and access your funds. Always make sure that you make sure to verify that the website address is the authentic one.
8. Don’t keep all your cryptocurrencies on one exchange
Having all your funds on one exchange can greatly increase the risk of being hacked. If you want to be extra safe you can spread the risk by sending some funds to multiple exchanges, which will give them less exposure if one were to ever be compromised.
I hope this guide was helpful and that it allows you to keep your cryptocurrency safe. The bottom line is always use these tips to keep in mind security, but realize that there are risks you will always have when dealing with digital currency.