It is no news that the cryptocurrency industry has gained a lot of attention over the years, slowly taking transactions from the physical to a digital environment. People now even gamble with Bitcoin rather than real cash. Indeed, cryptocurrency has come a long way from its beginnings.
However, it is not spared from online vices such as hacks. The result of this is the disappearance of a large quantity of digital currency. The hackers are, of course, almost impossible to trace as they equally disappear into the vast world of the internet.
To avoid these occurrences, you need to understand crypto and how to protect your bitcoin from theft. Here, we shall take a good look at some ways you can avoid hacks and secure your bitcoin.
1. Use physical and online wallets
One of the best ways to protect your cryptocurrency is using a secure wallet. You can save your cryptocurrency on a digital wallet or an exchange. However, it should be stored in a digital wallet. Still, there are several wallets, and each has its advantages and security features. You should do extensive research on different kinds of wallets before settling for one.
There are two basic types of wallets; the hardware wallet and the online wallet. The hardware wallet, also known as a physical wallet, looks like a USB drive and acts as physical storage for coins. Each hardware wallet has a private key that allows only you to assess the tokens or coins that are stored.
The online wallet works just like the physical wallet without USB devices. Like the physical wallet, these wallets have private keys that cannot be recovered once lost. Therefore, it is important to note store these keys in a safe and private location.
Though both wallets can be kept secured, it is advisable to keep most of your cryptocurrency in a physical wallet. Only a small amount should be left in the online wallet. Similarly, have separate keys for both wallets.
2. Use strong passwords
Most times, we create passwords that we can easily remember. However, while doing this, have in mind that it must be something unique and strong. Never use the same password for different accounts, especially cryptocurrency wallets. If you have two wallets, create two strong passwords.
3. Avoid sharing your secret key
Your private key is what gives access to send or receive digital coins. Therefore, the key should be your secret. This means that you should avoid sharing it with anyone. The safest way to store your private key is cold storage. Cold storage means printing out your private key and removing all digital traces of it.
4. Enable Two-factor Authentication
Like every account you would want to secure, always enable two-factor authentication. This would add another layer of security, making it more difficult to hack. To enable this, go to the settings of your account. Once there, you can set up the 2FA through google authenticator or get codes texted to you.
5. Use a secure mobile device
Many people with a crypto wallet access it with a mobile app. What they do not know is that mobiles are more susceptible to hacks. Due to its frequent use, hackers are motivated to target investors through mobile phishing. This gives them access to personal information such as your login credentials.
Aside from mobile phishing, hackers can engineer attacks from anywhere in any form on a digital device. For example, some malicious mobile applications can monitor your screen activity.
To avoid these, ensure that your device is updated with the latest anti-virus applications that can protect your device. Strong anti-viruses improve your device security and prevent hackers from penetrating the firewall.
6. Install an antivirus software
As a bitcoin holder, you must secure your funds, and another way of securing your funds is to protect your device. It is essential to install anti-virus software on your computer system. This is because windows, just like android, are exposed to many virus programs and worms.
7. Use a secure internet connection
While making transactions, make sure you use only a secured internet connection. Also, avoid public wi-fi networks. Even while using your home network, use a VPN for better security. A VPN works by changing your IP address and location, which keeps all your activities safe from threat.
8. Do not click on unknown links
Cybercriminals often use deceptive links to set traps. They put effort into getting your attention with well-constructed words and luring you to clicking unknown links. These links often lead to websites that steal private data and harm your devices as well. So, avoid clicking on links that you are not familiar with.
9. Use Trustworthy platforms
Hackers use different ways to get access to cryptocurrency wallets. So, before using any platform, research their security features and understand how they secure their data. Before investing a single dollar, make sure you research extensively about cryptocurrency exchanges.
An exchange platform allows users to buy and sell digital currencies, but there are different options to pick. Use only platforms that have a trustworthy history, like the Bitcoin Power official website.
As a trader or an investor, you know how essential digital currencies are. With this, you should also know that it is very important to keep those currencies safe. The points buttressed above are some tips that can help you prevent crypto hacks and protect your bitcoin. Inculcate these secure methods to avoid being a victim.
Andrew is a writer that does most of his work on cryptocurrency-related topics. While he’s primarily interested in Bitcoin, he also follows major altcoins and the innovative ideas that new cryptocurrency and blockchain projects are bringing to the table.