The current market size of cryptocurrency exchanges in Australia is $29.2, and experts predict a higher growth in the next few years. Developed countries are already using cryptocurrencies to transact and pay for utilities. The future of digital assets is bright and more people are investing in various crypto coins due to the hype and reality of positive prospects. Since cryptocurrencies operate in the digital space, they are susceptible to insider hacking and malware attacks.
There are numerous wallets for crypto assets that investors can use for trading purposes. But due to the increase in cyber threats, many opt to diversify their portfolio to avoid losing all assets in one wallet. That is why you must select a reputable crypto wallet with advanced security features to protect your digital assets. The crypto industry is independent and free from government regulations. Thus, investors must take responsibility to protect their investments.
The following are ways to help you secure your cryptocurrency wallet from online hackers:
1. Use Reputable Wallets
Since many companies offer cryptocurrency wallets, you may get confused when selecting a reliable option. Thus, ensure that you research and find out more about each company. Understand the features and security mechanisms in the wallet. If you use any wallet without due diligence, you may lose your entire investment at once. Cybercriminals are lurking online, looking for software vulnerabilities to hack and steal digital assets.
2. Store Private Keys Offline
Crypto wallets require private keys for any transaction to occur. These keys are prone to attacks from cybercriminals, and careless storage might compromise your account. Thus, keep your private keys offline to avoid such vulnerabilities. Do not store it on your computer, in the cloud, or any electronic device hackers can access. It’s safer to write it down and store it safely.
3. Secure Internet Connection
Cryptocurrencies are quite vulnerable because they operate on a decentralized system. So, secure Internet connections when trading or transacting crypto coins. Avoid public networks since hackers usually take advantage of these open systems to steal sensitive data from unsuspecting individuals.
It is better to tether the connection using your phone rather than accessing your crypto wallet on public Wi-Fi. Though you can activate your VPN (Virtual Private Network), hackers may bypass the security measures to access your digital assets. As technology advances, so are cybercriminals who devise new ways to hack crypto wallets. Therefore, use reputable Internet service providers who are not easily susceptible to security flaws.
4. Reliable Antivirus Software
Malware and virus attacks are rising daily, and no one is 100% safe from cyber threats. Thus, you must install efficient stand-alone antivirus software from a reputable security provider. Always protect your computer with updated software no matter the operating system you use to transact.
Remember, cybercriminals may use phishing attacks or ransomware to compromise your system and access your crypto wallet data. Therefore, it is imperative to thoroughly examine your device before making any wallet installation. Don’t forget to install new updates to prevent the latest viruses from infiltrating your system.
5. Use a Cold Wallet
Still, you can opt to use a cold wallet if you are worried about the many cyber-attacks. It is also known as a hardware wallet. Most crypto wallets offer hardware wallets in the form of USB devices, where you can store your crypto coins safely. They have buttons you can press to confirm or cancel any transaction.
Moreover, they contain advanced security features and encryption layers that prevent hackers from accessing the wallet. It is a better option since they don’t have a direct connection to the Internet. Therefore, your private keys are safe from online hackers.
6. Don’t Invest Your Crypto Coins in One Place
Keeping all your crypto coins in one asset is a huge mistake, whether you are a beginner or seasoned investor. If the coin value drops, you can lose your entire investment on one bad trade. Therefore, diversify your investments and minimize the risks by managing each asset. Though it may be cumbersome, it is a practical risk management approach.
7. Backup Private Keys
Even if you use an offline wallet, it is also important to backup your private keys in case you suffer online attacks. Anytime you make a transaction, backup the details and store the information in the cloud and hardware storage. It is better to keep your crypto coins safe and retain your investment portfolio.
There are many other ways to secure your crypto wallet from external threats. Therefore, research extensively and choose the strategies that might work well for you. Cryptocurrencies are quite vulnerable, and you need to implement strict security measures. Apart from using strong passwords, it’s critical to use a secure Internet connection. Protect your wallets for crypto-assets and survive in the cryptocurrency world.