In 2023, cryptocurrency witnessed multiple wallet hacks, leaving many users financially devastated. While some hackers may have hit the jackpot, many crypto investors worldwide are struggling to keep their digital funds secure.
Empower yourself with the knowledge to secure your crypto wallet and protect your crypto assets!
As most of us are transitioning to non-custodial wallets, we must familiarize ourselves with the best practices for securing crypto wallets for asset protection.
Keep Your Crypto Assets Secure: Make Crypto Wallet Your Strongest Link
When securing your crypto assets, the real danger is not the blockchain but the wallet/exchange.
While storing your sensitive information, private keys, or crypto assets on these platforms, it becomes easy for hackers to target them and loot your hard-earned savings.
Thus, it becomes more crucial to be cautious and implement strong security measures to protect your money.
Stick to non-custodial multi-chain crypto wallets, but that is just the start! To truly fortify your cryptocurrencies, you should adopt some expert-level security tips.
Protect Crypto Assets: Security Measures To Follow
- Diversify Crypto Earnings: Manage Them Using One Secure Solution
- Wallet Backup Is a Must-Have Practice
- Keep Your Private Keys/Mnemonics To Yourself
- Protect Your Mobile Device
Breaking crypto earnings into multiple wallets is not just an investment strategy but crucial for crypto security.
To safeguard digital assets, create multiple wallets and spread your savings. That way, if one is compromised, it will not devastate your entire portfolio.
Many multi-chain wallets have Manage Wallet feature that enables the users to operate their wallets together using one app.
For added protection, consider using cold storage devices as well.
Non-custodial wallets give you complete control over your crypto assets and do not store or maintain private keys. Thus it is essential to keep your recovery phrase/mnemonics/private keys offline in a secure place like a locker or metal plates, as soon as you create the new wallet.
But it is not the end; you must create multiple backups for these keys. Store the backups in encrypted form and stay informed about the latest security updates.
Also, it is a bad idea to store private keys online on email, note apps, or password managers; they could potentially get hacked! You can back up private keys using a USB.
Keeping your private keys/mnemonics to yourself is essential to protect the wallet againts threats.
Private keys/mnemonics are the secret codes that allow you to access & control your digital assets and perform transactions.
They work similarly to your ATM password or a PIN , so only the person with access to private keys can completely control your cryptocurrency assets. Therefore, never share private keys/mnemonics with anyone.
Most users prefer to access their crypto wallets using a smartphone, as devices have internet connection and are easy for intruders to exploit. To keep your mobile-based crypto wallet protected from hackers, take the following precautions:
- Use Two-Factor Authentication. It requires users to enter the code every time for login.
- Set Strong Password. For an extra layer of security, use facial recognition, biometrics, and PIN for a crypto wallet – it will help to avoid unwanted intrusion.
If your wallet supports the encrypted password, it can help you to add an extra security layer to crypto assets. Thus, no unauthorized party can access the funds from your wallet.
However, just like mnemonics, encrypted passwords may not in your wallet. Thus, it is your responsibility to keep them protected.
Although cryptocurrency hacks are common to happen, most of the hacks involve phishing scams where the innocent user inadvertently gives access to a dubious party.
For crypto protection, never sign into any crypto-related activity following untrusted sources or links. This may include Facebook, YouTube, or Google Ads, spam emails, airdrops, Reddit texts, or messages.
A legitimate crypto service provider will never ask for your private keys, password, or personal details. Stay vigilant and cautious in the face of potential phishing attacks, and take necessary steps to protect your digital assets.
Avoid Relying Upon Centralized Wallets, Exchanges & Custodial Services
Limit the use of centralized wallets, exchanges, and custodial services. Despite their well-established image for services and commitment to user security, one bad actor in the group can put all your earning at risk. Recent incidents like the South Korea Centralized Crypto Exchange GDAC Custodial Wallet hack and FTX illustrate the potential dangers of relying heavily on custodial services.
Instead, cryptocurrency users should consider adopting a strategy that involves using custodial services sparingly. Instead of using one centralized wallet, keep your funds in multiple decentralized wallets for day-to-day transactions.
Prefer using the centralized exchange or custodial services only in situations where it is extremely necessary. By keeping your assets in multiple wallets, you can minimize their risk. Do thorough research to know about the various types of cryptocurrency wallets available for storing and investing in cryptocurrencies.
Prefer Using Multi-Chain
Using a multi-chain approach for crypto asset security provides enhanced protection by eliminating using multiple wallets for different blockchains and accommodating all assets in one place. This decentralized validation significantly decreases the complexity. Additionally, the interoperability, fault tolerance, and regular security audits associated with multi-chain wallets further strengthen the overall security posture, making it a reliable solution for safeguarding valuable crypto assets.
Don’t Be Crypt-Swindled: Be Cautious Where and How You Buy Crypto
Be it investment, spending, or trading, buying crypto is essential for making transactions. But it’s crucial to be cautious while doing so and only rely upon trusted exchanges or partners. Be wary of overly complicated buying processes, suspiciously high exchange rates, and pushy offers. To ensure safe transactions, wallets like AnCrypto offer multiple options for buying crypto from trusted partners.
Purchase cryptocurrency at competitive rates and get it delivered to your wallet in just minutes.
So be smart and stay secure when buying crypto or making any investment—always choose a trusted partner to get the best of peace & security.