Technology

Top 5 Ways To Protect Your Crypto Wallets

The growing popularity and rise in the prices of Bitcoin and Ethereum make it clear that digital currencies frequently become an easy target for hackers who are looking to make money from these assets of great value. The economics behind hacking suggests that hackers are likely to continue to target virtual currencies, as they rise by worth and become more commonplace in our everyday life.

The task of identifying the activities of hackers can be difficult because their footprints can be erased electronically. If a cryptocurrency’s account is breached, the owners do not have recourse legally as the digital coins remain unregulated by a government agency as well as a central bank. Here are five suggestions to protect your investment in cryptocurrency. We must first learn about the security risks of cryptocurrency.

Security Risks: What are They?

Hackers are using COVID-19 as a tool to inflict harm on individuals. The risk of cyber security increased at the beginning of the pandemic, and the sophistication of malicious attacks increased. The crypto market is not immune from the attacks. There are three security concerns that traders in crypto have to deal with:

Ransomware

A ransomware program can encrypt the system and files, and then demands for a ransom payment to either return or to decrypt the files. Some ransomware software programs demand the payment of cryptocurrency. 

Phishing Scams

The emails that claim to be from legitimate sources, such as charitable organizations & governments are growing in the midst of the pandemic. In order to cover up COVID-19 scam, these phishing emails encourage people to click on the links to make a donation or purchase protection equipment. The links lead users to malicious websites, where personal data can be disclosed to hackers, such as private keys used for cryptocurrency exchanges.

Investor Scams

Scammers who pose as exchanges or crypto traders claiming the highest returns from cryptocurrencies have swindled innocent victims. Scammers make use of social media and email to target people. Bitcoin is the main cryptocurrency in the marketplace.

Crypto Wallets: How to Protect Them?

  • Cold Storage

It creates the public key through an extremely secure one-way hash function, whereas the public key creates an address with a similar single-way hash algorithm. This way, you can transfer money using the private key and you can easily confirm it with an open key. However, it is impossible to reverse the private key in order to transfer transactions from one account to another.

The majority of cryptocurrency thefts originate from key exchanges that are private and public keys on behalf of their clients. If keys for private use are stolen, hackers could effortlessly transfer cryptocurrency from the accounts of customers and into their personal accounts. You can not retrieve these stolen funds with no physical alteration to the blockchain. This is only possible when massive losses occur due to the inherent flaws in the cryptocurrency’s blockchain. Cold storage options can also be provided by any Crypto Wallet Development Company.

The most effective method to avoid theft is to make use of cold storage. It is that you store your private key offline. You can accomplish this by using anything from a QR code printed on a piece of paper. Furthermore, it represents your private key, to an encrypted hardware wallet that contains your private data.

  • Avoiding Crypto Scams

There are numerous types of cryptocurrency scams and more & new scams are released every day. If you’re aware of scams, you will be able to avoid being victimized and ensure the security of your cryptocurrency investments. Also, you can get in touch with Crypto Wallet Development Company and keep yourself updated with these scams.

Three of the most effective scams include the following:

  • Initial Coin Offerings (ICOs)
  • Trading Systems
  • Free Giveaways
  •  Internet Security

When trading or conducting cryptocurrency transactions, make sure you use an internet connection that is secure. If you are using networks at home, you should use VPN to protect yourself. A VPN transforms the IP address and place of residence, making your online activity secure from threats.

  • Using Hardware Wallet

They are by far the best cold storage solution to store digital currency. It is impossible for hackers to steal cryptocurrency without physically taking the device, since it’s not connected to the internet. If the device was stolen, hackers will have to figure out the PIN’s four to six digits code to unlock and gain access to the wallet. Hardware wallets of today are virtually invulnerable and extremely user-friendly for customers. Hardware wallets are a part of cryptowallet development and you can make use of these wallets with assistance from Crypto Wallet Development Company.

If a wallet on a device is lost, it is possible to securely retrieve the cryptocurrency with an established 12, 18 or 24-word recovery seed. The recovery seeds must be stored in a safe place. It is easy to purchase a new wallet and enter the recovery seed in order to gain access to the cryptocurrency stored in the wallet.

  • Two-Factor Authentication

Instead of using a single username to open your digital account, using two factor authentication increases the security of your wallet by demanding an additional password. The code transmits to your phone in either a text message or email and you can use it for a short period of time.

Last Say

These are the top 5 ways to protect your crypto wallet from using cold wallets to using two-factor authentication. We hope you will be able to follow these ways easily and protect your worthy investments. Moreover, to protect your crypto wallet, you must look for a reputed Crypto Wallet Development company. 

Author’s Bio

Peter Handscomb is an expert app developer at MobileCoderz, top Mobile & Blockchain Development Company. With more than 8 years of experience, he has worked with many big enterprises and startups. Aside from their professional expertise, he loves to read novels and write poems.  

Peter Handscomb

Peter Handscomb is an expert mobile app developer at MobileCoderz, an established Blockchain development company.

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