How to Protect Your Crypto Wallet From Cyberattack

Crypto hacking is one of the most painful problems in the crypto market. According to statistical data, six times as many cryptocurrencies were taken by criminal hackers in 2021 as it was in 2020, totaling about $3.2 billion. In particular, hacking user wallets is often chosen by hackers because it is much simple than other methods. So how do we protect crypto wallets? Check out the following tips from Tokenize Xchange! 

Know how common scams work

Hackers cannot access your wallet without any information. The simplest way is that the hacker will trick you into providing your own wallet information. Some of the commonly-used crypto scams can be mentioned as fake websites, email scams, social media scams, fake crypto apps, extortion scams, giveaway scams, technical support impersonation scams, investment scams, etc.

But in general, hackers will use fake things to make you trust and fill in the wallet information yourself. So, the best way to protect your crypto wallet is not to enter your wallet information anywhere. Or just in case, you must verify very carefully whether it is a reputed site or not before giving out your information.

Use multiple wallets

To reduce risks, you should store your cryptocurrency in different crypto wallets. This is similar to the ‘don’t put all your eggs in one basket’ capital management method when investing in cryptocurrencies. If one of your storage wallets is hacked, the other wallets will be still intact and you won’t lose everything.

In addition, you can also use one wallet for daily transactions. This wallet can be used to connect to many different websites but does not contain too many coins. When you need to store, you can transfer coins to storage wallets. This is the one to be sacrificed to protect other crypto wallets.

Use strong password

Users often have the habit of using one simple password for all different types of accounts. This can be quite convenient, but it is a huge security breach to protect crypto wallets. Hackers only need a password to access everything from your email, Facebook, and your wallets. Therefore, you should get in the habit of using strong passwords as well as multiple passwords for multiple websites.

Moreover, some wallets or websites are currently secured with two-factor authentication including confirmation via phone SMS and Google authenticator. This security method makes the wallet more secure. Because it will be difficult for hackers to log in to the wallet even though they have the password.

Use cold wallet

Cybercriminals have an easier time stealing money from hot wallets because those wallets tend to be always online. Therefore, traders should opt for offline wallets instead, also known as cold wallets. Professional traders usually use cold wallets to store most of their cryptocurrency, so make sure you have all of your keys and codes. Write them in a safety box or some other location hidden from prying eyes. 

These gadgets frequently resemble regular USB memory sticks, and improper use can easily cause damage to them. For potential future transaction costs, you can only retain a limited amount in your online wallet. Some famous cold wallets on the market that you can use are Trezor, Ledger, Safepal, etc.

Add IP Whitelists

IP Whitelist is a security feature used for limiting and controlling access only to trusted users. Any user who tries to log in from a device with an IP address not included in the whitelist will not be able to log in to your Tokenize account.

Hence, your odds of coming across a virus, malware, or other cyberattacks can be decreased by allowing only people who have been preapproved access to your network. It can also assist you to make sure that only those you trust have access to any sensitive information. 

>>>Click HERE for a guide to add IP whitelists

The cryptocurrency market is achieving certain successes with a market capitalization of hundreds of billions of dollars. Therefore, it also becomes a good piece of cake for hackers. The victims are mostly new or ignorant users.

Therefore, cyber security is currently a top priority because hackers tend to cyberattack wallets with poor protection. To protect your crypto wallets, users need to follow all the above tips to remain high security. In addition, picking up new knowledge constantly and updating new methods of hacking is the key to protect yourself.