How To Keep Your Crypto Portfolio Safe From Hackers? 2FA, Personal Wallets, More Best Practices
Hackers generally exploit vulnerabilities in your security. It is essential to be in the mind of a hacker and know where they would attack first.
While the Indian crypto ecosystem recovers from the recent breach of assets, it is crucial to revisit the measures customers can take to safeguard their digital assets.
According to a Reuters report, which quoted TRM Labs, hackers stole $1.4 billion worth of crypto by June 2024 compared to $657 million for the same period in 2023. So, as the sector grows, hacking activity is also increasing. This poses a threat to all sections of investors - small and big. The figures also reassert the importance of diligent and focused methods to protect your assets. While exchanges strive to fortify their defences, investors must also adopt rigorous security practices.
Here is a comprehensive guide to help you protect your crypto assets from potential hacks.
Strong & Unique Passwords
Hackers generally exploit vulnerabilities in your security. It is essential to be in the mind of a hacker and know where they would attack first. Obviously, a hacker would try to exploit the information that is easily available online, like your name, birth date etc.
To counter this, a robust password should be your first line of defence. Ensure your passwords are long, complex, and unique for each platform. Avoid using easily guessable information such as birthdays or common words. Consider using a reputable password manager to generate and store complex passwords securely.
Enable Two-Factor Authentication (2FA)
2FA adds an additional layer of security by requiring not only your password but also a second form of verification, such as a code sent to your mobile device or via an authenticator app. This step significantly reduces the risk of unauthorised access to your accounts even when your password is compromised.
Use Personal Wallets
For substantial holdings (above Rs. 50,000), consider using hardware wallets. Unlike online wallets, hardware wallets store your private keys offline, making them impervious to online attacks. Popular hardware wallets include Ledger, Trezor and SafePal. Remember to keep your hardware wallet in a secure location and never share your recovery seed phrase.
Assets above Rs. 10,000 can be stored in personal software wallets like Metamask and TrustWallet. This option gives you complete control over your crypto assets in case you choose to exercise it. It also means that you need to use exchanges that allow crypto withdrawals in India.
Also, avoid storing all your digital assets in a single wallet or exchange. Diversifying your storage solutions can mitigate the risk of losing everything in the event of a hack.
Be Wary Of Phishing Scams
Phishing scams are designed to trick you into divulging sensitive information. Be cautious of unsolicited emails or messages asking for personal information. Always verify the source before clicking on any links or downloading attachments. It is a good practice to visit websites directly rather than through email links.
Now, comes the simple but very efficient act: check and recheck the URLs you are using. For example, a customer who intends to trade on Giottus, should ensure that he is visiting the official site and not a website with any other spelling. Ensure that it is not Giottuss (with an extra s) or Giotttus (with an extra t). There are hundreds of such spelling variants floated by hackers which are frequently removed by the security teams of Giottus and other respected exchanges.
Secure Your Personal Devices
Your digital assets are only as secure as the devices you use to access them. Ensure that your computer and mobile devices are protected with strong passwords, encryption, and security software.
Regularly scan your devices for malware and other threats. Ensure that your devices and software are always up to date with the latest security features.
Backup Your Data
Regularly back up your wallet and important information. Store your backups in multiple secure locations, such as encrypted USB drives or offline storage. Ensure that your backups are updated and accessible in case of a hardware failure or cyberattack.
Understand Exchange Security Measures
Before choosing an exchange, research its security protocols. The percentage of assets in cold wallets, availability of cold wallet insurance, and indication of regular security audits are some of the key elements to watch out for.
Indian exchanges, under Bharat Web3 Association and FIU, are enhancing their security protocols, especially post-July 2024. We hope to be better prepared to defend against malicious actors in the future. Your preparedness and commitment to safety will go a long way in ensuring its success.
(The author is the CEO, Giottus Crypto Platform)
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.
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