With demand for cryptocurrencies, cryptocurrency hacking has also begun. And because Bitcoin and Ethereum have become more popular, hackers target these currencies to benefit from valuable assets. But the idea here is how to keep your cryptos safe.
The biggest cryptocurrency, Bitcoin, increased its trading value to over $60,000 (as of October 24, 2021), after reaching the highest level several days ago since August 2019. The price fluctuation of cryptocurrencies is unpredictable, and both investors and cybercriminals are attracted.
Several hacks and heists have been recorded on cryptocurrency exchanges and crypto wallets since its inauguration in 2009. According to the ‘AML’ study from the blockchain security company CipherTrace, bitcoin crimes worldwide reached more than $4.3 billion in 2019. Cybercriminals looted more than $125 million on various cryptocurrency exchanges in Ethereum, Bitcoin, and other digital currencies in 2019. For more accurate and precise information, visit https://bitcoinup.trade/
The article, therefore, quickly reveals ten strategies of protecting cryptocurrency investment.
Account Hacking Rise
Popularity and price growth in Bitcoin and Ethereum means virtual currencies are often targets for hackers who wish to benefit from this valuable asset. Tracking hackers’ work is frequently hard as their tracks may be digitally erased. Where a cryptocurrency account is hacked, investors have no recourse legally because a government agency or a central bank still doesn’t control virtual money. Here are the methods to protect the bitcoin investment.
Take a Hybrid Method
As online wallets expand daily, the risks of compromising your digital wallet are also rising. Therefore, it is necessary to use Offline Wallets to keep most of the user’s bitcoin by depositing a bit of money in the online wallet.
Use a Cold Wallet
The most practical alternative is to store your private keys in a cold wallet, sometimes called a hardware wallet, since they are encrypted to keep your keys secure. In 2019, the Japanese BITcoin exchange found that more than 50,000 customers could not take 32 million dollars from their hot wallets in various cryptocurrencies. There were five cryptocurrencies in the exchange’s hot wallet: Bitcoin, Bitcoin Cash, and Ethereum. However, BITpoint confirmed that the issue did not damage its cold wallet and its cash reserves.
Online wallets are becoming increasingly popular and draw hackers’ attention. The bulk of consumer cryptocurrencies should be stored in offline or physical wallets while maintaining only a limited number of currency in the online wallet, says Terence Jackson, chief security officer of Thycotic, a privileged access management service provider in Washington D.C.
“The physical wallet should also be kept in a safe place, for example, a safe deposit box,” he advises. “I’d also advise that private and public keys be separated. With bitcoin becoming more prevalent, more traditional choices arise, but you have to maintain a safe cryptocurrency in the interim.”
Use a Strong Wallet Password
Most individuals reusing passwords across various accounts might jeopardize you since hackers can take advantage of your weakness. This allows you to safeguard your account to a large extent by setting a solid and unique password that is unlike the passwords of other accounts.
It is also essential to utilizing two-factor authentication to reduce the danger of hacking. This is one technique of safeguarding the bitcoin investment.
Use Safe Internet
Use a VPN for enhanced protection even when visiting your home network. A VPN alters your I.P. address and location to make your surfing activities safe and secure against threat actors.
Two Strong Passwords make a Key
Never use your account passwords, mainly because bitcoin services are primary targets for hackers. According to Greenlight President Kevin Dunne, assume that all of them inevitably violate data, an integrated risk management solutions company based in Flemington, New Jersey. “While bitcoin is an exciting technology that evolves rapidly, proven security techniques are the quickest and most easy approach to safeguard your wallet,” he said. “Limit your exposure with a unique and strong password that allows two-factor authentication and password rotation when possible. Using a reliable password manager may assist automate and remove the guessing.”
Choose Notable Wallets for Cryptocurrency
Before investing directly in cryptocurrency platforms, investors should also check the safety safeguards offered by the site to secure their data. Select a noteworthy cryptocurrency wallet with multiple authentication and encryption before conducting trades.
Keep Several Wallets
Since there are no wallet limits, your bitcoin investments can be diversified across many wallets. Use the single wallet to retain the remaining in a separate wallet for your everyday transactions. This protects your portfolio and reduces the loss of your bitcoin account breach.
Since most individuals who invest in cryptocurrencies do not have any solid technical experience in the sector, it is up to you to secure your money as banks are not accountable for it. These components can benefit you.
Regularly Change your Password
The value of a strong password when talking about security cannot be underestimated. It further revealed that the majority of them use the same password in more than 50 locations. Make sure you have a solid and complicated password that is hard to devise and update regularly. If you have numerous wallets, use different passwords.
Know how you utilize your Wallet in Transactions
Apply the fundamental concepts of “cyber resilience” to your wallet, says Dirk Schrader, worldwide vice president of New Net Technologies, Naples’ cyber safety, and compliance software supplier in Florida. Know how it is utilized in transactions, make sure systems and networks are not hacked if you use them for these activities and have physical protection,” he said. They initially develop and spread before the primary target (your pocketbook) is attacked,” explains Schrader. “The cyber security provided to your money is as good as your comprehension of it.
Hot Wallets and their Hazards
Retail investors with hot wallets can simplify things, but this has also led to the loss of substantial amounts once the exchange was broken. The number of money to which they require access should also be tracked and assessed frequently. Since hackers’ objectives are always retail investors, they must employ adequate storage methods to prevent hacking risks.