4 Crypto Wallet Security Tips for Your Digital Assets
Are your digital assets safe? Is your crypto wallet a Fort Knox or a house of cards?
In 2021, a hacker stole $610 million US from an Ethereum-based crypto wallet by exploiting a flaw in the network code. Statistics show that the cryptocurrency loss to security threats grew 9 times in 2020–2022.
If you are losing sleep over your crypto wallet security, that’s spot on as one weak link will lose a million dreams.
Let’s soar above the risks and discover foolproof tips to keep your digital treasures out of harm’s way!
Use of a Reputable and Safe Crypto Wallet
A critical factor in securing your coins is to opt for a safe wallet.
Hot wallets have an internet connection but are more prone to phishing, while cold wallets being offline, offers more security. You can best shield your wallet from hackers by going offline.
According to Evaluation Assurance Level(EAL), which rates crypto wallet security, a wallet with an EAL score of 5 or more is considered safe.
Look for a cold wallet that holds a solid security record and is free of built-in bugs. Use forums like cryptocurrency Reddit, Trustpilot, or Bitcoin.com to check people’s reviews about a particular wallet.
Use of Strong and Unique Passwords
The use of the same password allows malicious attackers to crack it easily.
No need to play Russian roulette with your crypto wallet’s password. It’s time to get unique. Unique passwords keep your private key safe from data breaches.
You can go for a password manager to securely create and store your password. In 2022, 44% of respondents used password managers.
As a rule of thumb, the longer the passphrase, and more the variation in symbols, numbers, and special characters.The more tough nut it will be to crack. Better to rotate your password on a regular basis.
Use Two-factor Authentication(2FA)
Want to add an extra security layer to your wallet? Go for 2FA. 2FA is a multistep authentication method. Here an email or a message with a One-Time Password (OTP) or pin verifies you.
You can add biometric authentication as part of 2FA. Supplementary apps, like the authenticator app, help safeguard your wallet from cyberpunks. These apps generate OTPs or pins for short intervals and send a code directly to your phone to log in.
In all likelihood, a phisher can’t meet all your credentials and breach your wallet’s security.
Store Private Keys Offline
Private keys are strings of alphanumeric characters. They allow you to access, send and receive crypto transactions.
In 2022, a malicious attacker drained 9,231 wallets worth $4.1 million assets after the private keys of affected wallets were compromised.
Hardware wallets are top-notch for a secured wallet. They are designed specifically for offline storage of your private key, look like a USB derive and connect to a pc.
But, hardware wallets come with a red flag. If you connect a hardware wallet to a compromised pc you are putting it at risk. So, better to write your private key on a piece of paper and bolt it in a vault.
Bottom Line
Crypto wallet security is the backbone of your digital fortune. You can hack-proof your wallet by practicing the above 4 valuable tips.
Make your private key a diamond in the rough, say goodbye to common phrases, and forge unique passwords. It will take your crypto wallet security to unparalleled heights. So, hold the reins.
Are you up for the challenge? Let us know in the comment section.
