While there is a risk involved with an online business regarding Cryptocurrency, many of the same techniques that keep you safe do the same for your bitcoins. You must apply the same steps when reserving your crypto wallet to secure your online banking. To protect your bitcoin investment, you may take further measures. As a prerequisite to delving into this issue, familiarity with Billfold Vs. Wallet.
How to Protect Your Crypto Wallet
Hackers attack bitcoin exchanges and wallets with sophisticated tools and approaches. Here are the top six tips for keeping your cryptocurrency wallets secure and minimizing the probability that they will be hacked, but before that, you should read this excellent book, Based On Hacking.
1. Using the Two-Factor Authentication
Your account is granted an extra degree of protection due to 2FA. You receive a message or email with a verification code anytime someone tries to log in. This additional security measure will make it more difficult for hackers to access your account. They would need this verification code, so they may call and cajole you into providing it to them.
Never reveal your 2FA code, Time Password (OTP), or any other secret verification code to a third party. A call won’t require your credentials from the bitcoin exchange.
2. Avoid Cyber Scams on Social Media Websites
Imagine you’re watching a video on YouTube on how to make money trading bitcoins. There are more than 500,000 subscribers, and the show’s creator is a household name in the industry. In one of the comments, the channel owner offers to double your money if you contact them over WhatsApp or Telegram and invest with them.
The number is presented, and you add it to your contacts. You connect with them and join their “exclusive” Telegram group without giving it a second thought. For you, this is a once-in-a-lifetime chance, you say. After waiting a few days, you send someone $500 worth of Bitcoin, Ethereum, or any other cryptocurrency with the promise that you would “receive it doubled to your wallet in a day.”
3. Tuck away the Seed Phrase somewhere secure.
When you use a wallet service like MetaMask, you’ll get a “seed phrase” collection of 12–24 random words generated by the service. This seed phrase must be entered in the same sequence as it was given to you at signup.
A reliable “forgot your password” option is unfortunately unavailable. For this reason, losing your seed phrase will also cause you to lose access to your wallet. Keep this seed phrase offline in a safe place. Store it in the same place you keep your other paperwork.
4. Make use of a “cold wallet.”
You need to be aware of the following two kinds of bitcoin wallets:
- Hot wallets are internet-connected wallets like Exodus and MetaMask.
- Cold wallets are offline wallets that are not online, like a USB disc.
Hot wallets can be available from anywhere, but they also increase the possibility of theft and data breaches. Setting up a cold wallet needs some technical knowledge, but they are regarded as safer. However, no “forgot your password” option is available if you lost your offline wallet.
Ledger, makers of a hardware wallet with the most significant degree of security, is a fantastic example. The private keys for your cryptocurrency are saved on a USB stick with extensive security measures, secured by numerous layers of protection.
5. Verify the Recipient’s Wallet Address Twice At All Times
The bitcoin wallet address is used to verify the identity of the person sending or receiving the cryptocurrency. This address is a string of unique characters, generally between 26 and 35 characters long, and alphanumeric characters. Always check the recipient ID before transferring the bitcoin to another wallet.
6. Apply for Current Antivirus Programs
Numerous antivirus products offer excellent protection against crypto-hacking and phishing attempts. These programs scan all incoming emails to safeguard your money and flag possible phishing schemes.
Spend money on legitimate anti-virus software and remember to update it regularly.