Thursday, June 23, 2022

How To Secure Your Crypto Wallet

Keep Your Holdings Private

How to Secure Your Local Crypto Wallets

Theres a common saying in the cryptocurrency field about the old-fashioned $5 wrench attack. What this means is that someone can threaten your health or your life with a wrench that costs $5 from most stores and get you to give him your private keys.

While you can use technologies such as multi-signature wallets and so forth, the attacker wont really care, in most cases.

This is why it is absolutely paramount to never brag and flaunt your cryptocurrency holdings to anyone. Nobody needs to know exactly how much bitcoins you own or that you own any at all. Keep it to yourself, and theres no way you will get targeted for that.

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Ways To Protect Your Crypto Wallet

Despite these security risks, crypto wallets remain one of the best options to secure your cryptocurrencies. How can you protect your wallet from malicious activities? Here are five ways:

  • Use a reliable password manager

The code for your private keys, which gives you access to your crypto wallet, can be challenging to remember. That is a security tactic. Rest easy by using a reliable password manager to store and retrieve your code. This means you will not have to worry about forgetting your private keys and being locked out of your wallet.

    A Virtual Private Network app is another way to strengthen your security. A VPN can encrypt your online connection, blocking hackers from monitoring your crypto exchanges. Many crypto traders use this tool to ensure their anonymity online.

    • Use two wallets

    Consider keeping a small amount of cryptocurrency in your online wallet for trading purposes and keeping the rest in an offline wallet or cold storage. That way, if malware tries to intercept your password for your online wallet, the rest of your funds are safely stored on a hard drive, USB, or paper and out of hackers reach.

    • Use two-factor authentication

    Instead of using only one password to access your crypto wallet, two-factor authentication bolsters your security by requiring an additional code. The code can be sent to your phone as a text or an email and is only valid for a few minutes.

    • Update device software and antivirus

    Only Transact With Trustworthy Crypto Wallets Exchanges Brokerages And Apps

    Investors should really evaluate each platforms security features before choosing which to use so they can understand how their data will be safeguarded. Entities who can be trusted should have: taken adequate security measures that include multi-factor authentication, SSL/TLS encryption, and air-gapped devices that are kept offline. Whether youre using one or multiple cryptocurrency platforms, a secure password manager is a necessity to avoid losing credentials.

    Also Check: How Do Crypto Futures Work

    How To Keep Your Crypto Wallet Secure

    It is vital that you keep your cryptocurrency secure but, how do you do that? At BitPrime, we often get questions from customers asking how to backup wallets, what wallet is the safest to use, and why is it so important not to store backups/seed phrases digitally.

    In this article, I cover seven top tips for ensuring the security of your wallet app and the digital assets within. I also touch on the differences between cold and hot wallets and hosted and personal wallets, so you know which you should be using.

    Finally, at the end of the article, Ill provide my personal recommendations for four brilliant crypto wallet options.

    What Is A Non

    Tip: This is How You Save Your Crypto Wallet and Your ...

    The meaning of a non-custodial wallet is clear from its name, which means self-custody. Non-custodial wallets are those wallets that are in control of users. Users control their private keys and make transactions easily. If you use a non-custodial wallet, you are responsible for securing your coins and remembering the private keys of digital wallets to secure your investments. If you forget private keys, you will lose your coins and will be incapable of accessing your digital currencies.

    Investors are responsible for ensuring that they are using the suitable securing measures and best wallets like cold storage wallets. The most popular cold storage wallets are hardware wallets, basically physical devices that store private keys offline. Hardware wallets are considered as the safest wallets to store your crypto coins and private keys, but there are still many risks associated with these wallets. Therefore, it is crucial to find the right and reputable hardware wallet provider and use security measures to secure your wallet to avoid being destroyed or stolen.

    Multi-signature is a great security measure that secures your digital assets as it requires multiple keys to access the digital wallet. Different devices store different keys, including hardware wallets and phones stored in distinct locations. Along with it, the main thing that matters is the way you are backing up the keys or your wallet. It is crucial to create a backup of your wallet to recover it lost or destroyed.

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    Encrypt Your Bitcoin Wallet

    Apart from enabling 2FA, encrypting your digital wallet is another line of defense against potential cyber-attacks. This allows you to set a password and lock your coins whenever someone attempts to access your account. The hacker wonât be able to steal your Bitcoin unless he knows the password you set.

    How To Secure A Bitcoin Wallet

    Once youve selected your wallet or wallets, there are a few best practices that you can take to protect your cryptocurrency.

  • Keep it to yourself: While its okay to say that youve invested in Bitcoin, dont mention exactly how much money youve invested or gained; otherwise, youre making yourself a target for theft.11
  • Dont post on social: Many of us dont realize how much of our personally identifiable information is available publicly on social media. Not only does this put us at risk of identity theft in general, but it also makes you more vulnerable to Bitcoin theft, so dont post your email address, home address, or phone number. Its best to make all of your social media profiles private, as well.
  • Secure network: When accessing your Bitcoin via the internet, its best to use a secure and private network rather than a public Wi-Fi network. However, if you absolutely need to use a public network, you can either connect to a hotspot or use a VPN to encrypt your web activity and IP address. And for your home network, use antivirus software with network security built-in.
  • Avoid scams: Various outlets12 have reported numerous Bitcoin scam phishing emails, many of them promising Bitcoin giveaways. Beware of these scams, and try not to click on any unfamiliar emails, links, or attachments, especially on Twitter. Chances are if it sounds too good to be true, it probably is.
  • Recommended Reading: Can You Use Bitcoin To Buy Things

    What Are The Security Risks

    Hackers are leveraging COVID-19 to exploit individuals. Online security risk surged in the early stages of the pandemic, with malicious attempts becoming more sophisticated. Unfortunately, the crypto market has not been spared from these attacks.; The following are three security risks crypto traders are faced with:

    • Investor scams

    Scammers posing as crypto traders or exchanges claiming high returns on cryptocurrencies have tricked unsuspecting victims. The scammers use social media and emails to target users.; Bitcoin is the dominant cryptocurrency on the market; it has been the most exploited digital currency for scammers.

    • Phishing scams

    Emails claiming to come from legitimate sources such as charities and government agencies are increasing during the pandemic. Using COVID-19 as a cover-up, these phishing scams encourage persons to click on links to donate or purchase personal protective equipment. These links take persons to malicious sites where personal information can be exposed to hackers, including private keys for crypto exchanges.

    • Ransomware

    With ransomware, a malicious program encrypts your system and files, then asks for a ransom to return or decrypt the files. Some ransomware programs request payment in cryptocurrency.

    How To Secure Your Crypto Wallet

    How To Secure Your Crypto Review (Best Crypto Wallet Ever)

    June 4, 2021Nick Anderson 6 minutes

    Cryptocurrency is hailed as the solution to the centralized banking system by breaking the barrier of third-party reliance. Cryptocurrency allows transactions to be end-to-end and provides immutability to those transactions.

    Generally, when people hear the word cryptocurrency, they immediately think of Bitcoin. However, although Bitcoin is the most valued cryptocurrency right now, there are many other cryptocurrencies in existence. Ethereum is catching a lot of interest lately because of its rising value. You might be one of those who have invested in Ethereum or mined the coins yourself. Here are some of the best crypto wallets to secure your coins.

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    Crypto Wallet Best Practices How To Secure Your Coins

    Once a Blockchain transaction initiated, it cant be reversed, and funds cant be returned like in the traditional banking system. Hence, it is crucial to store our cryptocurrencies properly.

    Many people use crypto wallets to store their crypto. There are many different types of crypto wallets are available in the market. In this article, we will talk about some of the best practices to store your cryptocurrencies using a crypto wallet.;

  • Public WiFi
  • Do You Need A Paper Wallet

    The answer to this question will largely depend on your circumstances. If you plan to spend the summer day trading a few coins, perhaps you dont. Alternatively, if youre in for the long haul, and dont intend to touch any portion of your stash, then a paper wallet is the most secure option available to you.

    Also Check: How To Buy Small Amounts Of Bitcoin

    Use An Encrypted Password Manager

    Even as an average internet user you have probably created hundreds of accounts already for the numerous services you use online. And letâs be honest: you probably use the same password for your email account, small online shops and your favourite music streaming service. So if someone finds out this one password, then he or she has access to all your accounts.

    There is an easy workaround for this issue: make sure to generate and to use unique passwords – a different one for every service. There is no need to worry – you donât need to memorise dozens or even hundreds of passwords. Using unique passwords is actually easy. You just need to store them all in an encrypted password manager, such as LastPass or Dashlane.

    Make sure you set up your encrypted password manager right away to make password management safe and convenient.

    Make sure to generate and to use unique passwords – a different one for every service.

    The Swissborg Approach To Crypto Wallets

    Secure your crypto with multisignature wallets

    The SwissBorg app is both a crypto wallet where users can store and manage their assets, as well as a meta exchange. For the wallet functionality, SwissBorg chose a keyless solution to keep its communitys assets secure.

    The solution they use is MPC wallet technology, provided by Curv.

    MPC stands for multi-party computation and its advantage is that the security key is divided into multiple parts that have to be engaged in a certain order to make a transaction. Such a system is very difficult to hack. Apart from that, there is also no private key which the user could lose or accidentally send to a third party. This gives the SwissBorg app a secure, flexible and scalable system that does not have the most common vulnerability: the private key.

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    The Problem With Private Keys

    There are many different types of crypto wallets that use a pair of keys. However, the private key is their common single point of failure.

    Here are some potential scenarios:

    • A user sends assets to his private key instead of the public key
    • A user loses or forgets his private key and loses access to the wallet
    • The private key is stolen or destroyed

    As you can see, when you rely on a private key to secure your assets, there are many things that can go wrong. But if everyone knows the weak point of crypto wallets, why dont we get rid of them?

    Top Tips For Crypto Wallet Security

    1. Use a secure internet network

    Whenever you are accessing your wallet and sending crypto transactions, always use a secure internet connection. Dont use public WiFi which can be compromised by malicious actors. I strongly advise you to refrain from checking your cryptocurrency accounts using your local librarys or Maccas WiFi, just in case.

    2. Always backup your wallets

    Creating a backup of your wallet is one of the most crucial steps you can take to ensure the safety of your crypto wallet. If anything ever happens to the device your wallet is installed on, or the software its running, then this is the only way you are going to regain access to your wallet.

    When you create your backup phrase, its usually either 12 or 24 words long. Write it on paper or buy a special card such as Cryptosteel;or a SAFEWORDS Kit.

    Never, ever store your backups as a file on your computer and dont take a photo of them to keep on your phone; it isnt secure enough. Not to mention, should you lose your phone or your computer breaks, there goes your phrases!

    I strongly recommend keeping one copy of your phrase somewhere safe at home and keeping another copy in your will, with your lawyer. This way, if the copy at home is destroyed by something terrible like a fire, you can use the copy in your will. And, when you die, your family/beneficiaries can recover your assets.

    3. Secure storage of backup phrases is essential

    DO NOT LOSE YOUR BACKUP PHRASE!

    4. Use unique, strong passwords

    Read Also: Where Can I Buy Dash Cryptocurrency

    What Are Public And Private Keys

    Lets think of a real world situation before we understand what public and private keys are. Imagine a vending machine. Can anyone and put their money inside the machine right? But, they cant take out the money because they dont have the key, they can only put money in the machine. The only person who can take out the money is the owner of the machine who has the key.

    In this example, the vending machine is the public address which anyone uses to send money to you. You are the machine owner, and the key that he is carrying is your private key. Using this private key only you can access your money and do what you please with it.

    The public key is the address that anyone can use to send you the money, while the private key is what you will use to send money to anyone else. Remember, ONLY you should know what your private key is, otherwise anyone can use your wallet to send your money to any other addresses.

    Under no circumstances should you ever lose your private key. Lets put this in super simple terms. If you lose your private key, then you are SCREWED . You should use at least two different techniques to save and store your private keys. We will discuss these various techniques a little later in the article.

    As of right now, lets discuss the two methods of storage that you can use to store your cryptos, hot storage, and cold storage.

    The Keyless Approach To Crypto Wallets

    How to Secure & Backup Your Bitcoin or Other Crypto Wallets

    The keyless approach aims to split the private keys ownership between the wallet provider and the customers device. Thus, both the wallet device and the server possess one half of the private key required to access the wallet.

    There are two main benefits of the keyless approach:

    • Even if the customers half of the private key is damaged or lost, customers can recover them from the mnemonic seed held by the wallet owner.

    Read Also: What Is The Next Big Cryptocurrency

    How To Secure Your Crypto Investments

    When you make an investment, you would naturally want it to be the most secure that it could be. If you want to safely secure your crypto investments, then you would need to do your research on all the potential dangers that come with investing in cryptocurrency, as well as the basic measures you need to take.

    You need to remember that a centralized cryptocurrency is not able to provide the same levels of security as a traditional bank when it comes to its money. There is also the matter of crypto brokers: they are also not as strictly regulated by an authoritative body. If they are to be lost, then the damage is permanent. This is why it is necessary that you are updated with the information regarding crypto security and prevent any losses from happening.

    With the amount of advancement in technologies in this day and age, hackers work usually becomes difficult to trace since their digital footprints can be erased. Investors will have limited legal support if their crypto account is hacked because virtual coins are currently unregulated by anybody of government or central bank.

    Here are some steps that can help you further secure your crypto assets:

    Are Crypto Wallets Safe How To Keep Crypto Wallets Safe 3 Secure Ways

    Are crypto wallets safe? As cryptocurrency became popular and people started investing, it got the attention of potential hackers and cyber thieves;for easy targets. People who are new to cryptocurrency and invest sometimes get robbed and get their funds stolen. This happened because they did not know the overall system well.

    Cryptocurrencies are driven by Blockchain technology under the hood and have decentralization as their core motive. However, the lack of;central authority;figure;means that you have a greater responsibility to protect your own assets and wallets. Obviously, you can let some other company hold it for you but in Crypto we say Not your keys, not your crypto.

    You need to make sure to learn how to store your crypto safely by understanding the importance of a private key and public key in any blockchain.

    To make it clear, crypto wallet doesnt store your crypto assets or coins. It just holds the private key which helps you undertake crypto transactions online. Think of private key like your fingerprint thats unique to you.

    Similarly, private key helps digitally identify and verify you to prevent fraudulent transactions. Remember, there is no way you can login to a wallet if you lose private key. Also, you cant reverse a blockchain transaction after sending it. So, make sure to learn the importance of wallets and private keys.

    Lets take a deep look if crypto wallets are safe and how to keep them safe with extra knowledge

    Read Also: How To Buy Crypto With Amex

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