Since 2010, cryptocurrencies have been on the rise. They have grown massively in popularity. New ‘coins’ are created often, so many people are also starting to look past the mainstream Bitcoin.
Every day there are new crypto investors. Some people might not fully understand the risks that their investments might face. The risks are not only from the volatility of the market, which can rise and fall quickly in a short space of time.
Other risks include theft and cyberattacks. It is crucial that you understand these risks and how to keep your money safe. This is especially important if you are investing a lot of money into crypto.
In order to prevent your crypto wallet from being hacked and stolen, you need to take some basic cybersecurity measures. If your devices are not secure, you may be a target to potential hackers.
What Risks Does Your Cryptocurrency Wallet Face?
Cryptocurrency wallets might seem secure. However, a cybercriminal with malicious intentions can easily gain access to your wallet. Understanding this can help you to prevent someone from stealing your money.
Cybercriminals are constantly developing new ways to attack unsecured crypto wallets. You might not even know your wallet has been accessed until it’s too late. Once the money has left your wallet, there is no way to get it back.
Thanks to the anonymity of cryptocurrencies, you won’t be able to trace where your money has gone once it has been transferred. This makes it even more difficult to retrieve that money, or even prove that it has been stolen from you.
How Can Criminals Steal From Your Cryptocurrency Wallet?
Criminals have developed numerous methods to commit their crimes. They can gain access to your crypto wallet in much the same way as they would with a normal bank account. Internet users that are unaware of these tactics are at huge risk of being targeted.
Cybercriminals can install spyware on your device. This would allow them to see what is happening on your device while you are using it. If you access your crypto wallet during that time, they can easily obtain your login credentials.
They can also intercept your internet traffic if you are not using a secure connection. This could happen if you are using a public WiFi hotspot, or even while you are at home if your internet has been compromised.
Cybercriminals tend to target people who are unaware of their strategies. This is because these people do not take the necessary precautions to protect themselves. This makes them easy targets for hackers.
How to Keep Your Cryptocurrency Safe
There are several steps you need to take to ensure that your wallet is safe. Most of these steps are basics in terms of cybersecurity. However, many people overlook their importance when it comes to their own devices.
The first step you can take is to secure your crypto coins in a cold wallet. This is essentially an encrypted hard drive that stores all of your data. A cold wallet does not need access to the internet, making it less prone to cyberattacks.
Another step you can take is to secure your internet connection. You can do this by using VPN software. A VPN will encrypt your internet traffic, meaning no one will be able to intercept it to see what you are doing on your device. This is essential if you are using a public WiFi hotspot.
You also need to ensure that your devices are not compromised by spyware or viruses. You can do so by installing antivirus software. This software will scan your device for any malicious programs that may have been installed.
You need to keep your antivirus software up to date at all times. Software updates are brought out to ensure that any flaws in the software are fixed. Criminals also find ways past the defences, and software updates can prevent that from happening.
If you spend a lot of time on crypto websites or signing up for newsletters, you may find some odd crypto-related emails in your inbox. You must avoid interacting with these emails, as it could be a cybercriminal attempting to gain access to your devices or accounts.
Another step you can take is to avoid visiting questionable websites. These may contain fake pop up ads that can download malicious software to your device if you click on them. This is one of the main ways in which cybercriminals are able to catch out unsuspecting users.
Finally, you need to make use of strong and unique passwords. Using strong passwords will prevent a cybercriminal from being able to guess them easily. Using unique passwords will make it more difficult for cybercriminals to gain access to all of your accounts if one of them have been breached.
In addition, you also need to change your passwords regularly. Changing passwords is a good way to keep your account secure. If someone has gained access to your data they may only be able to find old passwords, which could deactivate your account, letting you know that your security has been breached.