How to Protect Cryptocurrency from Theft?
Updated On May 8, 2023 | by Joseph Williams
If you own cryptocurrencies, this should be your primary focus. As your crypto evolves, so too do the greater amounts of your money at risk. Because, by its very nature, cryptocurrency is easy to steal, so securing it can seem kind of challenging. If you are wondering about Bitcoin, here’s what you need to know about crypto stacking.
Protect your cryptocurrency from theft
However, there is no financial institution that provides a layer of security for crypto like BTC, so you may need to set up an additional level of security to protect your holdings. In the real world, IT security is also a problem that is capable of affecting the crypto business as well as every company dependent on technology. However, there is no doubt that your crypto can be stolen by a thief. If you want to keep your digital currency assets safe then you should be careful with exchanges and avoid fraud.
What are the methods used by hackers to steal crypto?
Most crypto owners keep their money on an exchange or mining marketplace, which is known to be particularly vulnerable to hacking. Recently, it was discovered that a hacker had gained access to NiceHash and had taken over $60 million in BTC. There seems to be a correlation between the price of BTC and other currencies and phishing attacks.
Phishers are usually looking for the administrator’s private key and password for the wallet. On the other hand, fake crypto apps that look and act just like legal exchanges can result in them deceiving people into buying digital money at any time. For example, Poloniex in the Google Play Store is a fake Android app. As the crypto value increases, so does the risk of theft. Here are three strategies that will help keep your money safe and sound:
1. Private Key Security
The first line of safekeeping BTC involves your private key. All you need is the private key, a 256-bit number, to gain access to your digital wallet. Your private key is in a way the key you own; So make sure to protect it with utmost care. You should use the same security methods to protect your device if you want to protect your private key. Here are some options you can take to keep your private key secure: Encrypted hardware, two-factor authentication, strong passwords, or never leaving your private key online.
2. Storing Crypto Offline
If you want to keep your crypto safe for a long time, make sure to keep it in an offline wallet which is one of the best ways. Such as “cold storage,” which is commonly seen to refer to where you can store your money offline, thereby protecting your money from many Internet thefts. You can also use a hardware wallet to keep money in cold storage or write down your private key on a piece of paper that can be stored securely. You can keep your private key offline to protect it from risks such viruses, internet hacking, hackers, and phishing.
3. Secure Password
There are also some crypto services available that allow you to log in with just your username and password, eliminating the hassle of keeping track of private keys. As a result, anyone can easily steal your money. If you want to protect your digital money from hacking like email then the best strategy for you can be to set up multi-factor authentication for the email account of your digital wallet. However, when picking a provider, 2FA (two-factor authentication) is also required in addition to the password and SMS text. Moreover, Google Authenticator is another simple and effective security measure.