Introduction
Due to their significant price growth over the years, cryptocurrencies have changed the world of investments as it has attracted many investors around the globe. However, while this popularity has become an edge to achieve success, it also made it a prime target for hackers. These hackers implement several ways only to achieve one goal, to attempt stealing digital currencies. And since cryptocurrencies are vulnerable to online threats because of anonymous and unregulated transactions, it can be very difficult to track and recover stolen funds.
If you've just recently invested in cryptocurrency or you've been in the landscape for a while, it's important to take steps to protect your assets. Unlike traditional currencies that are protected and regulated by the government, the security of cryptocurrencies, due to its digital nature, entirely depends on you. In this guide, we will be covering practical and essential tips that will help you keep your cryptocurrency investment safe.
How to Keep Your Cryptocurrency Safe from Hackers
As mentioned, cryptocurrencies, despite being advantageous for several reasons, have their own downside, including their vulnerability to online threats. However, it does not entirely mean you can't do something about it. Here are essential tips that will help you protect your digital assets:
Use trusted crypto platforms and applications
While many cryptocurrency platforms boast to have enhanced security measures, not all are created equal. Thus, it's very important to only use the options that are reliable and reputable. Carefully choose platforms, read reviews, and check the features they offer. Whether they use SSL/TLS encryption, multi-factor authentication (MFA), and other strong security measures. For more detailed information, you can read our Ultimate Guide to Storing Your Cryptocurrency Securely.
Free platforms can be tempting, however, these are the most vulnerable targets to hacking. So, it's also best to consider investing in paid platforms or wallets, as these usually implement more security features compared to free versions. Investing a little extra in paid services will be more worth it in the long run, most especially to give you peace of mind.
Keep your software up to date
This simplest yet most effective way to protect your digital assets is to ensure that the software you're using is always updated. Regardless if you're using a wallet, exchange, or any other crypto platform, using an outdated software are more vulnerable to online threats and are mostly the main target of cyber criminals as it is more easy to penetrate. Updates are very important since it usually comes with enhanced security systems that are designed to prevent hackers from exploiting vulnerabilities.
To keep your cryptos safe, make it a habit to update both the apps you use for cryptocurrency transactions and the operating systems on your devices. New versions often contain newer and more advanced security features such as facial recognition, fingerprint scanner, and more that can't easily be duped by hackers. So, the next time you see an updated notification, don't just ignore it - take a few moments to update your app to make sure you're running the latest version.
Distribute your funds across multiple wallets
As the saying goes, don't put all your eggs in one basket, because it's unwise to put all your investments or resources into a single thing. This idea is a risk because if that one thing fails, you will lose everything. Thus, it's best to spread the risks and diversify what you currently have - the same applies for cryptocurrencies. There are several types of crypto wallets available and it would be smart to use all of them and keep a portion of your assets to each.
Consider using a combination of hot and cold wallets. You can store funds in your hot wallets that are useful for frequent transactions, as it is connected to the internet it will be easier for you to conduct such transactions within minutes. On the other hand, cold wallets are physical devices and are kept offline. Here, you can store funds that are meant for saving and holding, as it is more secure from online threats.
Enable two-factor authentication or 2FA
Among the enhanced security features included in the new updates, 2FA is a must-have for securing any of your crypto accounts. This security method adds a new layer of protection, requiring you to verify your identity through a password or your mobile phone. Thus, even if the hackers can pass through the first login steps towards your account, they would still need the second factor to access your account, which makes it much harder for them to succeed.
The most popular option to enable 2FA is through a reliable authenticator app, while there are free options, it would be best to invest in a paid one to ensure that it actually does its function. However, hackers don't give up that easily and you should be cautious of SIM swap attacks.Here, hackers would prevent you and convince your mobile carrier to transfer your phone number to a new SIM card - the main reason why the authenticator app is very useful, instead of only relying on a solely SMS-based 2FA.
Test transfer before making large transactions
When moving cryptocurrency between wallets or exchanges, it's a must to double check every detail before confirming a transaction. Since transactions with crypto does not require too many personal details, and only using a wallet address instead, a small mistake can cause the loss of all your funds. What's worse is you can never get your funds back because cryptocurrency transactions are irreversible.
To avoid such errors, always perform a test transaction with a small amount of cryptocurrency before transferring large sums. This will help you verify if you actually have the correct address to ensure that your transaction will go through smoothly. While this would cause a small fee for the transfer, it's well worth the peace of mind knowing your funds are safe.
Conclusion
Always be one step ahead against the hackers. Take the time to apply all the tips above and secure your digital assets. While some methods can be a hassle at first, it's what will help you in keeping your crypto safe and protected in the long run. The online world has a lot of risks, especially when money is involved, so always choose to take extra safety measures to protect it as much as possible.
