Hardware Wallets, 2FA, More: How To Effectively Protect Your Crypto From Hackers

Despite the industry's efforts to improve security, individuals must take proactive steps to protect their crypto funds.

The rise of cryptocurrencies has gathered the attention of the masses worldwide. As more people are trying to understand, adopt, and use these digital assets for various purposes, they are gradually becoming mainstream. However, the crypto industry faces a significant challenge in the form of hacking. Cryptocurrency exchanges, wallets, and other platforms have become the target of numerous cyberattacks, and the consequences can be devastating. Despite the industry's efforts to improve security, individuals must take proactive steps to protect their crypto funds. By implementing best practices, they can safeguard their investments and reduce the risk of cyberattacks. 

Usage of hardware wallets 

This is one of the best and safest ways to store cryptocurrencies. A hardware wallet is a secure device designed specifically for storing cryptocurrencies. Unlike software wallets, which are stored on the computer or mobile device, hardware wallets store private keys on a physical device that is not connected to the Internet. 

This offline storage makes it difficult for hackers to access the funds as they cannot directly target the device. These wallets can act as an extra layer of security and can protect assets from hacking and cyberattacks. 

Enable two-factor authentication

Two-factor authentication (2FA) is a security measure that requires a user to provide two forms of identification before accessing their account. In addition to a password, a unique code is sent to the user's phone or email. 

This code must be entered correctly within a specific time frame to access the account. Many popular cryptocurrency exchanges and wallets offer 2FA as an option for users. Some may use text message-based 2FA, while others use a mobile app like Google Authenticator or Authy. When choosing a 2FA method, it is essential to consider the security of each option and select the one that works best for an individual. 

Use strong passwords 

The use of strong passwords is essential in protecting cryptocurrencies from hackers. A weak password can be easily cracked, giving hackers access to the accounts and funds. It is recommended to avoid using easily guessable information such as name, birth date, or address to ensure better security. 

Instead, combine upper and lowercase letters, numbers, and symbols to create a unique and secure password.

Keep software updated 

Regularly updating the software ensures that one has the latest security patches and fixes to protect the devices and accounts. This includes updating the operating system, browser, and any other relevant software of use. 

Most software will also notify when updates are available, and installing them as soon as possible is important. In case of using a cryptocurrency wallet or exchange, check for updates regularly and install them promptly to ensure that the funds are safe.

Keep a backup of seed phrase and private keys

Backing up the seed phrase and private keys is crucial in protecting cryptos from loss or theft. The seed phrase and private keys are used to access cryptocurrency accounts and funds, and it is vital to keep a secure backup. 

When creating a backup of the seed phrase and private keys, follow the instructions provided by the crypto wallet or exchange. Do not store the backup on an Internet-connected device, such as a computer or smartphone, as this increases the risk of hacking and cyberattacks.

Securing one's crypto assets from cyber criminals is of utmost importance in preserving the value of investments. Practising proper security measures, such as using a hardware wallet, enabling 2FA, creating strong passwords and storing them securely, updating software, and backing up seed phrases and private keys, can significantly reduce the risk of hacking and cyberattacks. These steps are crucial for ensuring the safety and security of cryptos. 

By following the recommended best practices, one can reduce the chance of losing the funds to malicious actors and feel confident that the investments are secure.

(The author is the CEO and co-founder of Mudrex, a global crypto investing company)

Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt Ltd. Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.