Before you start investing in cryptocurrency, the first question you should ask yourself is how safe your cryptocurrency assets will be as you buy and store them in your digital wallet app. Just as the cryptocurrency market has grown, so has the number of scammers and hackers targeting users and crypto exchanges.
If you have been following the updates, you will remember that Crypto.com, a cryptocurrency exchange that has been around for six years, was hacked early this year (2022). The hackers got away with close to $16 million worth of cryptocurrency.
Moreover, there have been many instances where cryptocurrency exchanges are being hacked, and those exchanges end up closing. Having seen these kinds of losses and how risky your assets can be, it would be very nice if you followed along with this guide on securing your cryptocurrency digital wallet app before falling victim.
So, let’s get started.
What is Cryptocurrency Digital Wallet App?
A cryptocurrency digital wallet app is a device, physical medium, program, or service to store private or public keys for cryptocurrency transactions. These keys are combinations of letters and numbers that are unique and encrypted for transactions.
Unlike bank accounts, crypto digital wallet apps are unregulated by the government and may not be legalized. So there is no central authority to safeguard (control) your cryptocurrency assets. Once your cryptocurrency is lost or stolen, it won’t be easy to get it back.
5 Ways To Secure Crypto Digital Wallet Apps From Hackers
Use the Trusted exchange to invest
Before engaging in cryptocurrency transactions, you need to know that one exchange is more secure than others. A good cryptocurrency exchange has tight security and tips that will help you keep your account secure.
There are many crypto exchanges out there that have maintained good security and have no records of penetrations. Some ways of knowing which crypto exchanges are safe for crypto trading are using 2FA verification, extensive social media presence, and verifiable employees.
Always visit the activity page to check what activities have taken place with your account and take action when you see strange activity.
Also, do your research to understand which exchange has been compromised in the past because if an exchange has been hacked before, It shows that security practice is poor. Thus your investment could be at risk.
Use Hardware wallet
A hardware wallet is a physical device that stores your private keys offline and away from the reach of hackers. Hardware wallets are considered the most secure type of crypto wallet as they are not susceptible to malware or viruses. Ledger and Trezor are two popular brands of hardware wallets.
Here is an image of a hardware wallet
When you want to spend or send any of your cryptocurrencies stored on the hardware wallet, you will need to connect it with an online computer for some time to access those coins on the blockchain.
Use Multi-signature storage
Multi signatures are the process of requiring two or more signatures before you can execute a transaction on a blockchain. This type of storage is one of the most effective ways to secure your crypto wallet from hackers.
By requiring more than one signature to authorize a transaction, you can make it much harder for hackers to access your funds.
Additionally, multi-signature storage can also help you recover your funds if one of your keys is lost or stolen.
Note: This may not be enough on its own; additional features like hardware wallets and trusted third parties can use in conjunction with multi-signature storage to offer even better protection.
Always Backup your details
One of the most important things you can do to protect your crypto wallet from hackers is to backup everything. It includes your private keys, recovery phrase, and other information needed to access your funds.
By having a backup, you can ensure that even if your primary device is lost or stolen, you’ll still be able to retrieve the backup and access your wallet on another Device.
Avoid Public Wi-Fi
To secure your cryptocurrency assets, you must avoid using public wifi to access your cryptocurrency exchange account or digital wallet app. Public wifi exposes some information about your online activity, and the owner could leverage this to access your passwords.
Use a VPN whenever you can to hide your location and IP address. You can use any device with a VPN to protect your data privacy and prevent activity tracking. An encrypted tunnel is essentially created by a VPN, giving you control over your data while maintaining the privacy and security of your online activity.
Also, make sure you trust the service provider of any VPN you are using to be on the safe side. Some free VPNs are designed for destructive purposes.
To wrap this up, you should never underestimate the risk of leaving your cryptocurrency digital wallet app to hackers. There have been many instances where investors and even crypto exchanges have lost millions of dollars due to insecure transactions.
Always try to ensure you are trading with a trusted crypto exchange and play your role by avoiding phishing activities that could lead to your crypto digital wallet app being compromised.
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