Well, it is highly unlikely that you haven’t yet heard of the cryptocurrency boom. Bitcoins are all the rage in the online world and do offer a range of security and anonymity features to users. Crypto wallets are used to store cryptocurrencies like Bitcoin and provide a means to receive and send digital money. It comes as a real shock to cryptocurrency users when they learn about the vulnerabilities of their crypto wallets, who had originally presumed that their money was safe just because its information was stored using a distributed ledger model.
The Threat to Your Digital Money
The Blockchain, which is responsible for cryptocurrencies, is indeed bulletproof and there is no known was of hacking into it. The vulnerability lies in your wallet and with the exchange provider who stores your personal information and maybe even the private key you use to make transactions. Once hackers get access to this information, they can make transactions without you getting as much as a whiff of it. Your personal information can be hacked either by cracking through the service provider’s servers or maybe even by some internal security threat.
To not to fall in such unfortunate situation of your crypto wallet getting hacked, I have come up with the following 6 must have tips for securing your crypto wallet. Let’s check them out below.
1. Use a High-Security Wallet:
Of the myriad of wallet providers out there, only a few are aware of the gravity of the security challenges they face. Your best bet is to find a crypto wallet that makes use of top of the line security features that are updated on a regular basis. There are wallet providers who encrypt personal information and private key information and protect you from any forms of internal threats. This is sure to provide you with a certain peace of mind about your digital money.
2. Use a Cold Safe:
A cold storage or cold safe is your best bet when it comes to keeping your digital money safe. A cold storage is an offline reserve of cryptocurrency and does exactly what it sounds like. It keeps your money locked away in offline storage and not on any web server. This is especially important when dealing with large sums of cryptocurrencies and ensures that nobody has access to the vault until required by the service provider themselves. A small amount required to perform regular transactions is kept on servers which in the event of a security breach would only result in a small loss.
3. Don’t Rush to Get the Update:
As tempting as they sound application updates have a higher chance of vulnerabilities than older versions. When it comes to mobile applications that deal digital money, it is best to wait it out for a few days after the release of an update before getting it. This would make certain that if at all any bugs are exploited by hackers; it does not affect you or your money.
4. Connecting to Public Wi-Fi:
Feels really good connecting to a public or free Wi-fi, doesn’t it? Well, there is a great risk that comes along with this practice. There is a common misconception that hackers sit in small dim lit rooms with bright screens staring them in the face. The truth is, that one of the easiest means of stealing information is by setting up a free Wi-fi service to which people happily connect to in hopes of getting to use some free data. What these innocent victims don’t realize is that while they browse the internet, the hacker is quietly whisking away their personal information and other banking details saved as cookies on their device.
5. Two-Factor Authentication:
Typically mobile devices make use of a single authentication to get you access to your wallet. This means that there is really just a 4 to 8 digit code that stands between your money and the attacker. It is advisable to make use of the more secure two-factor authentication which asks for either a biometric authentication similar to a retina or fingerprint scan or a digital code authentication. Using this can mean the difference between you losing a ton of money and securing your wallet, so try to find a wallet that offers this feature.
There have been instances when large sums of money have been sent to the wrong person and the sender suffering huge loses. It is advisable to always check and recheck the address of the receiver before sending digital money. Hackers can pose as someone else by editing the receiver’s address and thus gain the money from a transaction. This is where micro payments come in; sending a small amount prior to the actual sum can help you make certain that the person you intend to send money to is the one actually receiving it.
The vulnerabilities to digital wallets are very real and it is not a surprise that only a few users are aware of it and able to protect themselves from such threats.
By making use of the above-mentioned tips you can provide added security to your hard earned money in your crypto wallet and breathe easy.