How to Protect Your Crypto Assets From Hackers
It is not uncommon to read online trading news about the hack in the crypto industry. Individuals and even large trading platforms and exchanges fall victims to vicious hacks totaling billions of dollars.
There are different types of cryptocurrency thefts. Some examples are phone porting attacks, cryptocurrency Ponzi schemes, computer hacks, and phishing attacks.
Stories of hackers breaching people’s accounts and stealing their funds are now so common that the question is not “if” but “when you would be hacked.” Let’s now consider six ways of how investors can protect their crypto assets from hackers.
Protecting Your Crypto From Hackers: How to do It
- Preserve Your Anonymity
D H. Lawrence once said, “What the eye doesn’t see, and the mind doesn’t know, doesn’t exist.”
Some crypto holders make it a habit to announce how many assets they have on social media platforms; this puts them in the spotlight and attracts both good and evil.
Hackers can make use of the spear-phishing method on such individuals. This way, they find out personal information about their victim and send out malware disguised as a harmless message. It can come in the form of a PDF, a photo, or a GIF file.
Learn to keep your wealth status as anonymous as possible! What a hacker doesn’t know, he won’t chase.
- Use a hardware wallet
A cryptocurrency holder can either choose to store his private keys in a software or hardware wallet. To reduce the risks of an intruder hacking your accounts, a trader should store his private keys in a hardware wallet since it is not connected to the internet. This hardware wallet is also known as cold storage.
These cold wallets look like USB drives, and they usually store the private keys. Examples are Keepkey, Ledger, and Trezor. With these keys, you can access the coins or tokens that the wallet holds. The only issue with hardware wallets is that your assets are gone forever once you lose your private keys.
- Multiple wallets
“Do not store all your eggs in one basket” is a proverbial text that advises against storing all assets in one wallet. Since there are no limitations to wallets creation, take advantage by creating different wallets to store your assets.
You can choose to create a different wallet for your daily transactions and put the bulky part of your assets into other accounts. By separating your wallets in this manner, it reduces the chances of hackers gaining one-time access to all your crypto assets.
Whatever amounts of storage you choose to create for your assets, never make the mistake of storing them in the cryptocurrency exchange platform you use! Conduct your transactions on the platform and transfer your funds back to your wallet.
- Use Unique and complex passwords
Many people are fond of using the same password for different accounts, apps, or devices. As a cryptocurrency holder, this can be very risky. Using the same password for different crypto accounts exposes all your assets to attack at the same time.
If you are using multiple wallets, create complex, unique passwords for all wallets as this would reduce the chances of you losing all your assets. In a situation one of your accounts is hacked, the other accounts would be safe.
- Enable 2FA On All Your Accounts
Another way to protect your assets is by activating a two or multifactor authentication. This protection layer would provide increased security, protect you from phishing sites, and keep hackers at bay.
To activate this 2FA protection, you can use Google, Microsoft, or even Authy Authenticator. The 2FA acts as a second layer of security in the sense that If a hacker obtains your user identity, they would still not have access to your crypto account since they don’t have your authenticator details.
- Disable password autofill
The password autofill function is a function that helps you access your accounts easily without having to insert your password every time. Who doesn’t love a stress-free life? No one, at least none that I know.
However, this function you might probably love is putting your assets at significant risk. The password autofill option makes it easier for a hacker who gains access to your device to access your accounts smoothly.
Protect your crypto assets by disabling such a function on whatever device you have your crypto account registered.
As a cryptocurrency holder, protecting your crypto asset is your responsibility. By keeping your wealth as secret as possible, storing the bulky part of your assets offline in multiple wallets, and using complex passwords protected with a 2FA, you can put your mind at rest knowing that your investments are as safe as possible.