Cryptocurrency theft is more common than you might think. It can happen to anyone at any time, and it has happened on a massive scale in the past few years. The best way to protect yourself from cryptocurrency theft is by implementing security measures that will make your crypto holdings much harder for thieves to access. Here are some ways you can do this:
- Store your private keys offline:
Use a hardware wallet or store them off-line in something like an encrypted USB stick or external hard drive. This ensures that if there's a hacking attempt, they're not able to get into your device unless they have physical access to it and know what password/PIN you used when encrypting it. Besides, if the device is stolen, there's a chance you can get it back if you have your keys stored offline.
- Use 2-factor authentication:
Two-factor authentication requires you to enter a unique code in addition to your password when logging into an account. The main ways it can be configured are via SMS, email, or using special applications like Authy, which provide more security by enabling multi-device support and live synchronization. It's recommended that, if possible, you use the second method for added protection since hackers will have greater difficulty getting access to all of your devices at once if this is enabled across multiple platforms.
- Avoid reusing passwords on other accounts:
Following the motto "one person, one identity" might not seem very convenient given how many online services we regularly use these days, but it could end up saving you from losing everything overnight should one of your accounts be hacked. Using unique, complex passwords for all devices and services will help you minimize the risk of theft significantly.
One thing that we often tell our readers is to avoid using public computers or those at friends' homes if possible since hackers can easily track down critical information on these machines, which could lead them straight back to your wallet.
You should also never give out login details over email, even if it's from a legitimate service provider, as this makes it easier for cybercriminals to gain access to your personal account by spoofing messages with fake links attached (password resets etc.) - always verify such requests before acting upon them!
- Use multiple wallets:
You might be using one wallet to store your crypto holdings, but what happens if it gets hacked? If you use a different wallet for each cryptocurrency and store them all on separate devices/locations, then even if someone does manage to access the first wallet, they won't have access to your other currencies. This also means that should anything happen with one of those cryptocurrencies (e.g., getting rid of transaction fees), you'll still be able to move everything else around normally without having to resort to paying any high transfer fees or waiting hours just so the network can process it.
- Use a reputed cryptocurrency exchange:
Many people think of exchanges as the primary targets for cryptocurrency theft, or at least ways that it can be done. While this is true to an extent when you are using a reputable exchange, they have your back in terms of helping with recovery efforts should anything happen on their end. To find the best cryptocurrency exchange, you can check https://bitcointester.com/ as they provide in-depth reviews and guides that help investors in their trading journey.
- Don’t ever click links from people:
It goes without saying but clicking links doesn't just open up email messages anymore - there is out there that can create phishing links that appear to be legitimate. This can result in your computer being hacked or you just giving away more of your personal information than necessary when entering a website. Not only is this dangerous for cryptocurrency trading but also any other online experience as well.
- Protect yourself from malware:
In the same vein as clicking on unknown links, it’s important to protect yourself from download and email attachments that contain harmful viruses and programs designed especially for stealing cryptocurrencies. One way to avoid this is to make sure you have good antivirus software on your computer. You should also watch out for email and text attachments that come from unknown senders.
- Protect yourself from keyloggers:
Another way that criminals can steal information about you and your crypto holdings is through the use of keyloggers. These are programs that record what you type into your computer- including anything related to cryptocurrency -and then send this information over the internet back to hackers who will attempt to access accounts with these passwords or keys for wallet addresses. This includes not only exchanges but any other website where people store their private information such as email or personal social media accounts, which may also include cryptocurrency trading platforms. To avoid being hacked in this way, it’s important to frequently update your operating system, change passwords regularly, and never leave devices unattended.
When it comes to cryptocurrency theft, there are ways you can prevent your funds from being stolen. With the right precautions and security measures in place, hackers won’t stand a chance against your hard-earned digital assets!