Four Ways to Protect Your Cryptocurrency from Hackers

Almost 12 years ago, cryptocurrency was valued for the first time when 10,000 Bitcoins were exchanged for two pizzas. In 2021, the price of one Bitcoin reached an all-time high of more than USD 65,000. Over 10,000 cryptocurrencies exist today. But as digital assets grow in value and popularity, they are also attracting cybercriminals.

Globally, USD 432 million worth of cryptocurrency was stolen this year, as of April. The market is maturing and there has been a drop in crypto theft compared to last year. However, it is important that you take the right precautions while trading. Here are some practices to secure your cryptocurrency

Using a hybrid wallet strategy

Unlike traditional wallets, crypto wallets do not store currencies. They only hold the private keys that keep your cryptocurrency safe and accessible. Wallets can be online or offline. Since online wallets face a greater threat from hackers, it is advisable to store most of your cryptocurrency in an offline one. Keys can be written on paper or stored in a USB drive. They should be kept in a safe location. There is no limit on how many wallets you can create, so it helps to have multiple. Do not share your key with anyone.

Having a strong password

Never reuse your passwords. It helps to create a unique and strong password for all your accounts. Ideally, it should be complex and 16 characters long. Enabling two-factor authentication and changing your password regularly can leave your holdings less vulnerable. Use a password manager if you find it difficult to manage this.

Avoiding public Wi-Fi

Hackers can create fake Wi-Fi networks to lure unsuspecting users. Logging into unsecured public Wi-Fi, such as in cafes and railway stations, can allow them to steal your cryptocurrency. Ensure that your internet connection is safe when you conduct any transaction.

Securing your phone

Phishing is a type of cyberattack where an attacker sends a fraudulent message to a receiver to make them divulge sensitive information. Smartphones are increasingly becoming a target for cryptocurrency thefts. Phishing attacks could take place through texts, messaging platforms, social media, mobile apps and email. It helps to install an antivirus software on your mobile phone.

The cryptocurrency market is profitable and especially favourable to early adopters. But the right security is vital to get the most from it. Taking these simple measures can go a long way, whether you are an experienced trader or just starting out.

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