10 Best Practices To Protect Your Cryptocurrency Wallet

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If you remember the quadriga CX incident that happened in 2018, you might be concerned about your cryptocurrencies stored in the exchange wallet. Actually, today we are not here to go into the brief about what happened at quadriga CX exchange but how you can save your cryptos from such scams. It is needless to say that the constant hacking in the crypto sector is a notable concern. Almost all the major cryptocurrency exchanges like Mt Gox and even Binance have suffered big hacks. The only difference that made some of them survive while others went bankrupt was the way they dealt with it. To keep your crypto coins safe, you must know how to protect your cryptocurrency wallet from hackers. Let’s find out about the best practices that you can follow to secure your crypto wallet and eventually your crypto coins.

How to Protect Your Cryptocurrency Wallet From Hackers?

Bitcoin and other virtual currencies remained a highly popular target for hackers however, if one is being smart it can also be prevented easily. Moreover, the sector isn’t even regulated by government entities or Central banks which increases users’ concerns about security. So if you want to know how you can protect your digital wallet and eventually invest more, here is all the information you need. To protect your cryptocurrency or Bitcoin wallet from unknown hackers, read the pointers given below:-

  • The first and most important point is that you should use a wallet from a well-known source. Always do your research about the wallet beforehand, read its reviews, and find out if it is reliable or not.
  • Store coins in a cold wallet instead of online wallets or other types of hot wallets. Cold wallets are offline hardware wallets that help you keep your private keys secure without the interference of any third party.
  • Do your homework (Never share your ID password and other wallets related information with anyone). Another point to note is that if you forget your password there is no way to recover it.

Use Multi Signature Feature To Protect Your Wallet

  • Another way to secure your cryptocurrency wallet is by using the multi-signature feature. You should avoid the same simple password method that gets easily hacked and use a multi-signature of more than one key to authorize a bitcoin transaction.
  • Use two-factor authentication for online wallets. Although it is not recommended to use online wallets if for some reason you are using it then make sure you enable 2FA. Most online wallets have two-factor authentication and you should always use it.
  • Backup your cryptocurrency private keys (It will be helpful in the case of loss of keys)
  • Use strong passwords. If you use an online wallet be careful when choosing a password. Most people use the same password across various websites and services which increases their risk of getting hacked. You should never use your phone number, date of birth, or anything relatable. A good password is a combination of numbers, alphabets, and special cases, so you should create a password that way only especially when dealing with crypto.
  • Use good and up-to-date antivirus software. As you know, hackers use viruses and malware software to get access to your computer device, you must scan your device before installing a crypto wallet on it and also set regular scans to be on the safe side. Make sure to keep your antivirus up to date to stay secure from the latest malware and viruses.
  • If you use cryptocurrencies on a daily basis, use a separate wallet for it. You can create as many Bitcoin addresses as you want as there is no limit to it and also use numerous crypto wallets as per your need.

Take Backup Of Your Crypto Wallet

  • Backup your digital wallet. A backup will allow you to access your wallet in case you lose it or your device fails. Choose a different and safe location for your backup. This way you can get access to your wallet with the backup files and move the funds to another secure wallet wherever needed.

Best Practices To Keep Your Cryptocurrency Safe

Now, that you know about how you can keep your crypto wallet safe, let’s talk about some other factors you should consider to keep your crypto secure. By following these simple points you can prevent yourself from huge losses and be on the safe side.

  1. Don’t keep all your cryptocurrency in a single place. This way in the case of loss you can protect yourself from huge loss.
  2. Use trusted and secure networks, don’t use a public hotspot or wifi or something like that to protect your wallet from hackers.
  3. Don’t talk about your investment, keep all the pieces of information private.
  4. Conduct smaller trades, don’t go for a big deal and try to fix a limit for yourself.
  5. When you are browsing online, make sure to check and confirm if the website you are on is authentic. In order to get access to your private information, internet scammers most of the time create a clone website. These types of website are a copy of the official website with a similar URL. So, you must verify the website where you are supposed to enter your personal details including the private keys of your cryptos beforehand.
  6. While transferring cryptos to another sender, make sure to verify the address. You can make a mistake even when you are copy-pasting the address and eventually end up sending cryptos to someone else. There’s no way to reverse cryptocurrency transactions, so you need to be extra careful in this matter.

Conclusion

These were some of the tips to protect your cryptocurrency wallet from hackers and unauthorized access. In case you are looking forward to knowing about the cryptocurrency wallet that is reliable, read our reviews on top crypto wallets. As we said above, if you want your cryptocurrency to be completely secure and out of hackers’ access, the wise thing is to use a cold storage wallet. When you use an online wallet, desktop wallet, or a mobile wallet, you are basically trusting a third party for keeping your private keys secure. But if you use an offline wallet i.e a hardware wallet or paper wallet, you will have complete control over your private keys. For other information regarding cryptocurrencies and blockchain, stay tuned to Cryptoknowmics and subscribe to our daily news.

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