One of the worst parts of owning crypto is that you always need to be extra careful about it. As crypto transactions are not reversible, you don’t want your assets to get stolen or hacked. That’s why you must think about how to secure your crypto wallet.
Luckily, securing a crypto wallet is not as complicated as it might seem. With the right tools and knowledge, you can keep your crypto assets safe and secure.
So in case you are wondering what you should be doing to safeguard your crypto, experts from The Money Mongers, a crypto first publication, did research on best practices for keeping your crypto wallet safe, and below is a quick explanation of the same.
Tips to Keep Secure Your Crypto Wallet
Multisig or Multi-signature is one of the most secure ways to store crypto. It is pretty useful when you own a large number of crypto assets, and it prevents unwanted transactions.
Unlike other crypto wallets, a transaction gets created and signed when you want to send funds from your wallet. By approving or signing the transaction, you mean that you are the owner, and you have the keys to manage the assets and approve the transaction.
However, it also requires one or more co-payers to sign a transaction to send funds from the wallet. This means the wallet adds an extra layer of security to your funds. Also, in some cases, it adds a time delay in fund transfer. As a result, hackers will have to hack multiple channels to transfer your funds which gets really tough and time-consuming.
But if you do regular crypto transactions, then a multisig wallet might not be an ideal solution. As you have to get two or more signatures every time you want to transfer funds. Instead, you can use 2FA.
Unlike the software crypto wallets, hardware wallets are the most secure options. As they are not vulnerable to cyberattacks, security holes, and other things. But instead, hardware wallets stay offline out of the hacker’s reach.
Hardware wallets are meant to store your private keys or crypto assets on a physical device with specialized firmware and prevent your private keys from getting accessed.
In addition to that, hardware wallets are also protected against unauthorized use. As it is secured with a PIN. So if your wallet gets stolen or lost, no one will get to access your assets. But with your backup seed, you can easily regain access to your crypto assets.
However, unlike software wallets, hardware wallets are not free, you need to buy them. But yes, make sure to buy from trusted sellers only since you don’t want to buy a pre-hacked hardware wallet.
Also, if you are wondering what the best hardware wallets are, you can consider checking out Ledger Nano X or the Trezor Model T.
Secure Your Wallet With 2FA
Online or software wallets are easily accessible by entering a username and a password. Hence, if a hacker gets access to your credentials, you will end up losing your crypto. Hence to safeguard it, you can try using 2FA.
2FA stands for 2 Factor authentication or two-step verification. This adds an additional layer of security to your wallet. Also, it is pretty friendly to use.
If you enable 2FA on your crypto wallet, a code will be sent to your phone whenever you log in to your wallet. As a result, along with your login with credentials, you will also need a code. The code gets continuously changed and has a certain time limit to it.
This way, even if hackers have your login credentials, they will still need your 2FA code to access your funds.
In most cases, the two-factor authentication code will be sent as an SMS or email. Or it can use authentication apps like Google Authenticator.
But make sure that you are keeping all the keys and passwords securely. If you lose them, it might be a hard time for you to recover your funds.
In short, having 2FA can also be a good idea if you make frequent crypto transactions and don’t want to use a multi-signature wallet.
Multiple Wallet PrivateKey Backups
In the digital world, taking backups of our important files and data is extremely important. And the same goes with your crypto wallet’s private keys. According to experts, you should have three copies of your wallet’s private keys.
Two of them should be stored in different secured places that you can always remember. And the last one should be close to you.
As a result, even if you lose your wallet’s private keys, there are two other backups to recover your crypto assets.
But if you don’t consider taking any backup at all, then you will lose all your crypto assets if you lose your private keys. So it is better to have multiple backups instead of none.
Encrypt Your Wallet
You can also consider encrypting your wallet. By encrypting, you will get assurance that no one will be able to transfer funds from your wallet without your knowledge. But if you choose to encrypt your wallet, make sure to remember the password. Or store the password somewhere safe.
The best part of encrypting your crypto wallet is that it helps you to protect your crypto assets from being stolen. Also, when you are creating a password, make sure to use both numbers and the alphabet.
Also, make sure to avoid entering your passwords on public computers or over public wifi. As it puts you at risk of getting hacked. Instead, use your own devices and your personal network.
Be Aware Of Phishing Attacks
Apart from safeguarding your wallets, you should also be aware of phishing attacks. Hackers are always looking for different ways to steal crypto from users. So it is important to be aware of how hackers are working and the common ways people get scammed online and lose their crypto.
For instance, hackers often hack the Twitter accounts of famous people, and they tweet with the promise of returning the double amount of crypto you send to them. However, these kinds of tweets are fake, and you will end up losing whatever funds you send to them.
Also, if anything seems suspicious to you, make sure not to fall for it. In addition to that, make sure to use trusted services only.
Keep Everything Up To Date
Last but not least, make sure to keep everything up to date. For instance, if you are using online or software wallets, make sure they are always updated. This ensures that the wallet has the latest security updates and patches.
Even the same goes with your offline or hardware wallets. You should check for updates from time to time and update your devices.
Newer security updates ensure that your wallet is safe from unknown security glitches and severity. Also, in case of hackers have hacked the previous version of the app or firmware and you are not updated to the latest version, your funds might be at risk.
Along with your crypto wallets, you should also ensure that you keep your gadgets and other software up to date.
So that was all about how to secure your crypto wallet. I hope you have found this article helpful and will take strong security measures to safeguard your investments. In case you wish to ask anything else, then do comment below.
Share On social Media 👇