A danger is associated with conducting online business; many of the same practices that keep you secure do the same for your cryptocurrency. When safeguarding your crypto wallet, you must use identical precautions to protect your online banking. However, you may take a few more steps to ensure your bitcoin investment.
How to Protect Your Crypto Wallet
Hackers target cryptocurrency exchanges and wallets with advanced tools and methods. Here are the top six suggestions for keeping your cryptocurrency wallets safe and lowering the likelihood of being compromised. However, before that, you should read this incredible book, Based On Hacking.
- Using the Two-Factor Authentication
Your account is given an additional degree of security, thanks to 2FA. You get a message or email with a verification code whenever someone attempts to log in. By adding this step, hackers will find it more difficult to access your account. They would require this verification code, so they may call and bribe you into giving it to them.
Never divulge your 2FA code, One Time Password (OTP), or any other secret verification code to a third party. A call won’t request your credentials from the cryptocurrency exchange.
- Avoid Cyber Scams on Social Media Websites
Consider that you are viewing a YouTube video on how to profit from trading cryptocurrencies. Over 500,000 people subscribe to the channel, and the content producer is well-known in this market. The channel owner asks you to contact them via their WhatsApp or Telegram number to invest with them and double your money somewhere in the comments.
- Store the Seed Phrase in a Safe Place
A wallet provider like MetaMask will produce a collection of 12 to 24 random phrases as a “seed phrase.” You must input this seed phrase in the same order you receive when you join up.
Unluckily, there isn’t a trustworthy “forgot your password” solution. Therefore, if you misplace your seed phrase, you also lose access to your wallet. Keep this seed phrase offline in a secure location. Put it in the same spot where you keep your stuff by writing it on paper.
- Utilize a Cold Wallet
You need to be aware of the following two types of cryptocurrency wallets:
- Hot wallets are internet-connected wallets like Exodus and MetaMask.
- Cold wallets are offline wallets that are not online, like a USB drive.
Hot wallets are accessible from anywhere, but they carry a higher risk of data breaches and theft. However, no “forgot your password” option is available if you misplace your offline wallet.
- Verify the Recipient’s Wallet Address Twice At All Times
The wallet address serves as a means of identifying a sender or recipient of bitcoin. This address is a string of unique characters, usually between 26 and 35 characters long, and alphanumeric characters. Always verify the recipient ID before sending the bitcoin to another wallet during forex trading.
- Apply for Current Antivirus Programs
Numerous antivirus solutions provide incredible defenses against crypto-hacking and phishing attacks. These applications check all incoming emails to protect your wallets and highlight potential phishing scams. Invest in licensed antivirus programs and keep them updated with the most recent database.