Are Crypto Wallets Safe?
This article focuses on the volatility of cryptocurrencies providing an introduction to potential cybercrimes, and then explores ways in which a crypto wallet can be kept safe from phishing, frauds, heists, duplicity and hacks.
Cryptocurrency Trading is gradually experiencing swarms of new users and investors nearly every second, but how long the digital currency will take to get into mainstream payment methods across global markets is yet to be seen. While the Crypto markets are witnessing daily transaction volumes increase exponentially, one cannot deny that the currency is exceptionally volatile in nature. The largest, Bitcoin, is an example in that it saw a staggering rise in August 2019, and within months, newer currencies started giving it a tough competition. This indicates that the market has as many manipulators as users, indicating that just like traditional fiat currency, cryptocurrencies are also susceptible to heists, frauds and hacks.
One such report in the year 2019 titled “Cryptocurrency Anti-Money Laundering (AML)” by CipherTrace, a blockchain technology firm, revealed that cryptocurrency crimes have been on a sharp rise in that very, hitting over $4.3 billion annually. The report discloses that cybercriminals had robbed more than $125 million in Bitcoin and Ethereum exchanges. Careful spenders with the potentials to invest huge on cryptocurrency will find this information disturbing and might even tout it as a reason to not venture into crypto-verse. But little knowledge has never been helpful. Therefore, we’re sharing a list of measures one can take to protect their crypto wallets safe from online crimes:
- A secure internet connection – When dealing in cryptocurrency transactions, one must be sure of using a secure internet connection, preferably a private data network rather than a public WiFi network. Even when one accesses the internet from their workspace or residence, they must use a VPN in order to maintain additional security. Using a VPN will help the crypto trader’s browsing activity be safe by changing their location and other valuable details.
- Cold Wallets – As the name suggests, Cold Wallets are like USB devices that do not use the internet for being connected to a network. They are also called hardware wallets and are the most viable alternative to store data. One can use cold wallets to store private keys as the storage uses encryption for keeping the transactional details private.
- Multiple Wallets – There is no limit for the number of crypto wallets a trader can have. This is why it is an excellent defence against fraud and diverts a user’s cryptocurrencies into multiple wallets, each locked inside a firewall. One can also keep two separate wallets – one for daily use and another for occasional use.
- Secure Personal Devices – Most crypto wallets are accessible through desktops, laptops and smartphones, thus increasing the possibility of online hacking. To avoid that, one must keep their personal devices, whichever they might be, by installing updated antivirus and similar firewalls.
- Changing Passwords Frequently – When talking about account security, one cannot underrate the significance of strong passwords. Hence, a crypto trader must create and maintain a complex password, one that cannot be guessed easily. Changing passwords frequently is a good practice. Also, if someone uses multiple crypto wallets for trading and exchange, they must keep a separate password for each account. Other measures to keep a crypto wallet safe is by using Two-Factor Authentication or Multi-Factor Authentication.