Safeguarding your Crypto wallets

12-10-2021    Hari Kondlapudi    Views 1301

One of the most promising investments for individuals and businesses currently are Cryptocurrencies. The popularity and boom in cryptocurrency are attracting both investors and hackers. We are aware of the fact that storing our digital assets in crypto wallets is one of the safest options in the market.

Storing crypto currency can seem like a tricky business since they consist of private and public keys. Securing your wallet is essential when it comes to protecting your currency against cyberattacks. How do we protect our crypto wallets from these digital exploits?

Why securing Crypto wallets matter?

Whatever kind of crypto wallet you use, your coins will always attract scammers, fraudsters, and thieves, especially if you’re holding or transacting with large amounts. Businesses and individual investors, both often fall prey to such hackers and heists.

Many think it won’t happen to them, but when it does, the amount of regret is beyond endurance. Phishing attacks have also increased both in volume and complexity, where these fraudsters get you to download some malware or click on some links by pretending to be someone they’re not.

A lot of people who’ve gotten their assets stolen or hacked can be seen on social media like Twitter and Reddit.I don’t want to scare you away, but this is a serious problem many investors and companies are facing frequently.

Being careful and meticulous of all the details about your investments andbeing aware of all possible threats can help you prevent such fraudulent activities from happening.

Things that one may need to follow to secure their crypto wallets without compromising.

Let’s start with the fundamentals.
  • Go for Antivirus

    Make sure your laptop or any other device you use for storing your crypto is safe. Invest in a good and updated Antivirus software. Get it for your mobile devices too. This is important because, often times we have access to our cryptocurrency, emails, passwords etc. on our mobile phones.

  • Careful with passwords

    Speaking of passwords, many users lose access to their wallets by losing passwords or misplacing drives (hardware) or mobiles. According to a study about 40% users lost their passwords at some point. So, be cautious of how and where you store your passwords.

  • Make use of Online tools

    Having a software signature verifier can be useful. This tool helps detecting fake software that tries to infect our device or steal information from it.

  • Network Security

    Having a safe and secure network is also important; always use a secure internet connection. Many antivirus software include network scanners that notify any vulnerabilities in the network.

  • Web browser safety

    Web browser safety is another key factor, be aware of the websites, there could be malicious extensions. It’s better not to access suspicious links. Bookmarking important sites is a safe option to avoid getting tricked by fake ones that look similar to the real ones.

  • Do your homework

    Before investing in crypto assets, it is crucial to research the crypto exchange platform. Crypto exchanges allow us to purchase and sell our digital currencies. Researching includes reading previous investors’ reviews, talking to experienced investors, and learning from them.

  • Go for a Crypto Wallet

    Whether it is a hot or a cold crypto wallet, it is always better to have your own crypto wallet, rather than leaving your assets on the crypto exchange platform which are custodial wallets.
    Custodial wallets are wallets that don’t allow access to private keys, the private keys are maintained by the exchange platform itself. Having your own wallet lets you maintain your private keys without any third party involvement.

  • Don’t put all eggs in the same basket

    Branch out your investments. It is a healthy strategy that holds true to any kind of businesses or trading. While investing in Crypto, don’t put all your money in one kind of currency just because the name sounds familiar or because it is pricey. It’s best to spread out around several types of currencies.

  • Use different Crypto wallets

    Similar to the above point, don’t store all your currency in one type of crypto wallet. Each wallet has its own benefits and requirements. It is better to investigate your storage choices before investing. Storing different amounts of currencies in different kinds of wallets is a common practice among successful investors with large assets.

  • Choose a loyal Software

    Always use highly trusted and reputable software to generate your crypto wallets.

  • Authentication and Attention

    If you are using Hardware wallets, assure that the device has got an authentic password manager. Also, be attentive of where you store the device and where you plug it in, to avoid malware attack.

  • Use multiple hardware wallets

    Having multiple hardware wallets is also a good practice. This way, you can clone your devices using same seed phrases, which allows you to access same funds from multiple wallets. It also makes back up and restoration process easier.

  • Generate new addresses for every transaction.

    Address reuse is a strict no while transferring crypto funds. Cryptocurrency is very different from fiat money. Reusing the same address makes it easier for others to identify your trading patterns, this reduces privacy.

  • Use a separate device for mobile wallets

    While using Mobile wallets, it’s suggested to have a separate mobile phone that you can use as a crypto storage rather than having it on your primary phone and walking around with all the confidential details. This secondary mobile must only be used for transaction of funds and kept offline when it’s not in use, this way it acts as a cold wallet and is more secure. The device doesn’t need to be online for receiving funds to the account.

  • 2FA

    Set up a Two Factor Authentication (2FA) for all critical wallets. All wallets have an ID and a password that we use to access them. A 2FA adds a third credential for an extra layer of security. It is a unique one time password (OTP) that will be required to log in successfully. Even if the password is compromised by the hacker, having a 2FA will prevent him from gaining access to your wallet.

  • Keep it Private

    This is the most important thing. NEVER share your private keys with anyone. Also, use strong passwords for all wallets. Change them regularly and don’t save them on any cloud.

Cryptocurrency is an industry that is rapidly growing. Hackers around us are constantly coming up with new techniques to attack our hard earned money. Unlike Fiat money, cryptocurrencies are decentralized which makes them less reliable. Protecting these digital currencies is our own responsibility, updating ourselves with latest technologies and theft prevention strategies will help us securer the wallets and assets.

Do Systems Inc has experts for developing Cryptocurrency exchange platforms of your choice. If you are interested in starting a Cryptocurrency Exchange software business or have any questions, contact us for a free consultation.

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