Due to their increasing values, cryptocurrencies have earned a reputation of being susceptible to hackers and scammers. With the increasing number of cryptocurrency wallet hack (about 27 percent of crypto theft in 2018 was through crypto wallet hack), most people moved to save their digital assets in cryptocurrency exchanges. However, news around cryptocurrency exchanges getting hacked is now a regular occurrence with the hack of Coincheck and BitGrail being the two most notable occurrences in 2018.
In 2018 alone, more than $1.1 Billion worth of cryptocurrencies were stolen. That means about $4,243.83 worth of cryptocurrencies was stolen every second in 2018. Most of these thefts can be attributed to the activities of hackers and could have been prevented had basic security measures been taken.
In the banking system, the bank has the responsibility of keeping customers’ money and in the case of theft, the bank is responsible to refund customers’ fund. But in the case of cryptocurrency, the owner has the responsibility to protect his or her own digital assets in a crypto wallet. In case a hacker breaks into the crypto wallet, no one can be blamed and the owner would lose all the assets as there is no insurance.
Therefore, it is not safe to keep your cryptocurrency online since there is no guarantee on its security. And if you are keeping your cryptocurrencies in the wallets, there are several things you need to do to protect your assets. Here are the best ways to keep your cryptocurrencies safe from hackers:
Keep Your Private Keys Private, Avoid Cryptocurrency Exchanges
As much as possible, avoid storing your cryptocurrencies on exchanges. They can get hacked at any time due to internal errors. Basically, crypto exchanges would not give you your private keys. This means that your cryptocurrency is stored in their wallets. In the case they get hacked, you stand to lose all your assets.
Keep Your Wallet Secure and Safe
Irrespective of how long or complex your passwords are, if your device (where your wallet is installed) is compromised, hackers would still be able to gain access to your cryptocurrencies. Therefore, avoid unsafe browsing and unverifiable downloads. Also, ensure that the device that holds your cryptocurrencies is protected with as strong antiviruses.
Use Two-Factor Authentication Wherever Possible
In the case you have to use an online wallet, two-factor authentication is your best tool when it comes to safety and security. Just as its name suggests, two-factor authentication adds a second factor before accessing the cryptocurrency account or wallet. To access the crypto wallet, both the password and the unique code are required. So, if a hacker eventually gets your password, they wouldn’t still be able to access your account without the authenticator app. Almost all cryptocurrency wallets and exchanges now support the two-factor authentication.
Choose Your Wallet Wisely
This is another most important choice you need to make to keep your cryptocurrencies safe from hackers. For your safety, avoid just any mobile wallet that comes your way. Do you prefer convenient and flashy cryptocurrency wallet, or do you prefer the secure and arduous core crypto wallet? Either of these cryptocurrency wallets has its advantages over the other. So, irrespective of the wallet you intend to choose, choose wisely.
Don’t Keep All Your Cryptocurrency in A Single Place
Should your wallet or exchange be compromised for any reason, you would be able to minimize the impact of any loss if you had spread out where you stored your currencies. Though this strategy is more time-consuming and requires better tracking of accounts, it is a more secure strategy.
Most cryptocurrencies holders often ignore or overlook basic security measures, which has led to many hack attacks and thefts. Most of these hacks and thefts could have been easily prevented had the owner followed necessary security measures like those stated above. Following the measure listed above would help you to keep your cryptocurrencies safe from hackers.