7 Ways to Protect Your Cryptocurrency Assets from Hackers
The economy is changing and Millennials and Gen Z are looking for new ways to transact and make money.
If you have been following banking, investing, or cryptocurrency over the last ten years, you know that Millennials are the top cryptocurrency investors – almost 50% of all cryptocurrency holdings belong to Millennials.
Below are 7 tips to protect your cryptocurrency from hackers:
1. Use multiple wallets to protect your cryptocurrency
Blockchain technology is highly secure at its core. And you might have heard that it’s unhackable. This is not true.
Those with the skills and knowledge can steal your crypto. In fact, blockchain analysis company Chainalysis reports that just over $3.2 billion worth of crypto was stolen in 2021 alone.
The vast majority was because funds were left in a single online account rather than across multiple secure accounts. Essentially, it’s best not to leave all your eggs in one basket. You will lose everything if someone gains access to your account.
2. Use multi-currency crypto banking
Multi-currency banking is simply a type of banking that allows you to hold and transact in multiple currencies. This can be useful if you frequently need to send or receive payments in different currencies.
It can also be helpful if you have customers or suppliers in different countries, as it eliminates the need for currency conversion. And, because you are dealing in local currencies, it can also help to reduce transaction costs.
There is a trusted and FCA-approved crypto banking account at BCB Group that allows you to hold and transact in multiple cryptocurrencies.
As of March 2022, there were more than 18,000 different types of cryptocurrencies, for a total market capitalization (market cap) for all cryptocurrencies of $2 trillion.
Crypto banking is a relatively new development, and only a handful of banks offer this service. However, it is becoming increasingly popular, especially among businesses that operate in the digital currency space.
3. Get professional digital security help
If you hold a lot of digital assets, it’s worth hiring a professional digital security service.
There are specialised blockchain security services that use hardware security modules (HSM) that help you strengthen an already robust system. Blockchain security services provide almost unhackable protection using solid and reliable techniques such as cryptographic key storage and access authentication.
Among the top-quality professions available are skilled IT services for protecting your data – this is especially important if you operate as a company.
4. Don’t leave assets in your hot wallet
Further to spreading your crypto across multiple accounts, it is advisable that you don’t leave funds in your hot wallets for an extended period.
A hot wallet is an online account. Online accounts can be hacked, and therefore you are at risk of losing everything you have.
Fortunately, you can invest in a cold wallet for very little money. A cold wallet is a USB storage device to which you can download your holdings. Because it is not connected to the internet, it is unhackable. Provided you keep the access key safe and secure, of course.
5. Always use a VPN when online
A VPN or a virtual private network allows to establish a protected network connection when using public networks.
A VPN provides an encrypted server and hides your IP address from corporations, government agencies, and would-be hackers. A VPN protects your identity even if you are using public or shared Wi-Fi, and your data will be kept private from any prying internet eyes.
This means any trackers don’t ID you and don’t know what you access. Some of the best example of VPN include:
- Nord VPN: user-friendly, cheap, and comes with extra security features.
- Surf Shark: very low cost and provides the basic features you need.
- CyberGhost: powerful features and very user friendly.
- Private Internet Access: very powerful with expert features.
- Strong VPN: very basic and cheap, but it gets the job done.
Most VPN services are similar, and you can save a ton of money if you opt for annual payments rather than monthly. Yet some things to look for when choosing a VPN provider include good customer support, AES 256-bit encryption (government level), and high-speed servers.
6. Invest in the best anti-malware
Anti-malware or antivirus software is a computer program used to prevent, detect, and remove malware.
Today’s antimalware packages such as Malwarebytes are cheap and provide immense security to your devices.
A good package helps prevent unwanted intrusion, suspicious programs, and common viruses with scanning. But almost all reputable packages come with extra features for further protection.
Common examples include email scanning, web browser monitoring, and tracker blocking.
Without these features, you are exposed to the dangers of the internet.
7. Protect your cryptocurrency with password changes
If you think you have a secure password, you are wrong. While you might go out of your way to create strong passwords, they eventually get cracked.
Because of this, you must regularly update your passwords, even if they are complex.
Password managers like LastPass are excellent for doing this.
Unless you have an eidetic memory, a password manager is essential. Additionally, LastPass and apps like it have amazing password generators. For example, LastPass has a tool for creating complex passwords of up to 99 characters!
There are over 30,000 attempted cyber attacks every day all over the world. And there’s no reason why your crypto wallets could not be hacked next.
So keep up to date with cyber security news. You can browse the news every week to stay up to date about the advancements related to malicious hacking.
This is so you can be aware of how things like phishing or man-in-the-middle attacks work, and equip yourself with the knowledge and plan your cybersecurity for enhanced safety.