Any cryptocurrency investor will agree that the first thing you need when owning digital currencies is a crypto wallet. Aside from storing your coins and private keys, this app allows you to send and receive crypto using a unique address.
Unfortunately, several high-profile crypto wallet hacks have occurred throughout the years. For instance, wallets connected to FTX and FTX US crypto exchanges saw $659 million in total withdrawals in November 2022. This attack can be frustrating, considering that crypto transactions are irreversible.
Cyber criminals become smarter by the day, creating new ways to overcome every roll-out of security measures. Protecting your wallet from cyber criminals should be your utmost priority, whether you’re a new or seasoned crypto investor. But how exactly can you do so? Read more to find out.
5 Common Crypto Wallet Attacks You Should Know
Learning about different attacks is the first step to protecting your crypto wallet. Here are some common threats you should know.
- Phishing Scams
Like conventional phishing scams, this type of attack involves a hacker sending an email or message that appears to be from a trusted source. They may try to pose as an official crypto exchange platform or wallet provider. As they do so, they typically ask you to click on a link or supply personal information.
Crypto hackers send “cryware” or malware that can infect your computer or device and steal your private information. Some of the details this malware targets include crypto wallet passwords and private keys stored in common user devices.
- Unsecured connections
Websites without a valid HTTPS protocol or a padlock in their address indicate that they’re unsafe and unencrypted. Unsecured connections can give hackers access to your information, even if you don’t download anything from their website.
- Fake crypto wallets
Some cyber criminals offer crypto at 5% below market value and significant savings when you buy through their site. Take these offerings as a sign that they’re offering fake crypto products. Remember that anything that sounds too good to be true is often a scam.
- SIM swaps
This crypto wallet attack happens when a cybercriminal remotely or physically transfers your SIM card information from your device to theirs. The cybercriminal can gather your data from another hack, pose as you when calling your phone carrier, and request a SIM swap. That way, sensitive information like your OTPs will land on their device instead of yours.
5 Ways to Protect Your Crypto Wallet
Unlike traditional banks, no government or financial institution provides insurance for cryptocurrency wallets. As such, you must proactively take the necessary precautions to ensure your digital wallet is safe and secure. Here are some tips on how to protect your crypto wallet from attacks.
- Choose a reputable wallet provider
Many crypto wallet providers today offer unique features and benefits. Remember to research and choose a reputable wallet provider with a good track record concerning their security.
- Use strong passwords and two-factor authentication
One of the simplest ways to protect your digital wallet is to choose a strong password. This detail should comprise a combination of letters, numbers, and symbols, making it difficult to guess or crack.
It’s also best to use two-factor authentication (2FA) for more robust security. This additional layer of protection requires a second factor, such as a code sent to your phone or biometrics like facial recognition or voice command.
- Store your private key offline
A private key is a unique code that gives you access to your digital wallet. Keep your private key using offline means like a cold or hardware wallet to make it harder for cybercriminals to steal your crypto. Hardware wallets store your private key on a secure chip, making it nearly impossible for hackers to steal.
- Use a multi-sig wallet
A multi-sig wallet is a digital wallet that requires more than one signature to complete a transaction. This process adds an extra layer of security to your digital wallet, blocking cybercriminals from stealing your crypto.
- Regularly upgrade your software
Cybercriminals are always looking for vulnerabilities in software and systems. Regularly updating your digital wallet software can eliminate any vulnerabilities that hackers may exploit. Most wallet providers will notify you when an update is available. So, install the update as soon as possible.
Keep Your Crypto Wallet Safe and Secure
Securing your crypto wallets is crucial to protect your digital assets. Follow the tips above to prevent possible threats from harming your crypto wallet. When you ensure your crypto wallet’s safety from cyber criminals, you can earn Bitcoin, Ethereum, and other digital currencies available. This way, you can work on your crypto investment portfolio more smoothly.