Cryptocurrency theft or attack is a serious issue of concern in the digital currency world. In fact, in the latest Statista crypto theft report, $320 million was lost in February 2022 alone and was never recovered. While cryptocurrencies are well known for sophisticated security systems, hackers have always found entryways into these tough security systems to cause mayhem. Whether it’s your first time trading coins or you are an experienced trader, it’s important to learn how to protect your investments. Here are some proven ways to go about it.
Store in a Cold Wallet
One of the main reasons why hackers easily attack and steal cryptocurrency investments is because they’re stored online in hot wallets. Cold wallets are devices that store cryptocurrency private keys offline. Once you buy Bitcoin, for instance, you can hold it in a cold wallet and have the private keys transferred from an internet-connected device to a non-connected or offline device. This way, you minimize attacks on your investments either at a personal or corporate level.
Learn About Latest Cyber Scams
Cyber scams have continued to evolve with every new invention of cybersecurity trends. Scammers and cybercriminals also take advantage of the struggles law enforcers go through globally to curb rising cybercrimes. If you’re a newcomer in this trade, even the oldest of scams can catch you unawares, leaving you counting your losses.
For instance, scammers can easily trick you into revealing your one-time password (OTP) to be used in activating two-factor authentication to access your account. Fraudsters can use different tricks to acquire your OTPs, including the following:
- Accessing unmonitored verification forms
- Posing as authorized parties
- Impersonating you at banks
- Sending malware-infiltrated links
Regardless of the nature of the scam, you should be well prepared to avert the threats they carry to remain safe in the long run.
Always Use Secure Internet
It’s important to emphasize that public or widely shared internet protocols are major leeways to various forms of cyber attacks. Even if you use public Wi-Fi for personal use, when it comes to trading and crypto transactions, you must switch to a secure connection. You can use a VPN to add an extra layer of protection over your home or office network just to cover your location and IP address, keeping you secure whenever you browse.
Open Multiple Wallets
Opening multiple wallets can help minimize the magnitude of loss in case you’re attacked, and your investment goes. You can maintain a separate wallet for various activities, like one for active trading, another for online purchases and transactions and another one for storing your investments.
Doing this will help restrict any loss to the account that’s been attacked, leaving the rest safe and intact. If hackers got your wallet information from a website or platform you purchased something from, they could only steal what’s in that account while your other investments remain safe.
Don’t Expose Your Crypto Holdings
Many users are tempted to show the world their trading success in an attempt to woo newcomers into the craft for some commission. Hackers use social media as a fertile ground for gathering user information before launching an attack. You might end up exposing just what they need to gain access to your account and steal everything remaining there.
Protecting your cryptocurrency investments from cyber attacks will demand a lot from you, which means you must remain vigilant anytime you’re transacting. These five crucial tips should help you achieve a smooth run with your investment accounts in the long run.
Image Credit Kanchanara
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