How to Secure Your Crypto Wallet to Keep Hackers Out!

Key Insights

• One of the many ways crypto gets stolen is through lapses in crypto wallet security.
• Crypto investors, whether beginner or experienced investors must know how to secure their holdings from hackers.
• Some best practices include backup security, choosing the right kind of crypto wallet, avoiding phishing scams and more.
• Never access your crypto wallet on public Wi-Fi, and always use a VPN if you must.
• Never buy a second-hand hardware wallet, and make sure to always stay informed.

Crypto wallets are often prime targets for hackers. This is true for everyone, whether as a seasoned investor or as a complete beginner.

For this reason, keeping your assets safe should be a top priority.

Here are a few pointers on how to avoid costly mistakes when it comes to securing your assets.

Choosing the Right Wallet

Choosing an effective wallet is your first line of defence against hackers. This is because not all wallets offer the same level of security.

When starting out in the crypto market, you have several options when it comes to crypto wallets, each of them with their own pros and cons:

• Hardware Wallets

These are physical devices, much like flash drives or hard-disk drives. They are the most secure kind of wallet, and function like digital vaults. 

They store private keys completely offline, and out of the reach of hackers. However, they can be slightly more difficult to use compared to other kinds of crypto wallets.

• Software Wallets

These kinds ofcrypto  wallets run on phones or computers. They are convenient to use and can be accessed at any time. However, they are constantly connected to the internet, and therefore expose funds to online risks like malware and phishing attacks.

• Exchange Wallets 

These wallets are by far the easiest to access and use, but can be the most vulnerable.

They are the wallets provided by crypto exchanges, and can be accessed directly on the platform for trading or exchange.

However, since the private keys to these wallets are stored on the exchange itself, exchange wallets are relatively easy to compromise.

That said, hardware wallets shine when it comes to long-term storage. However users who trade frequently need to acquire a software wallet.

Another important thing to remember is to avoid storing large amounts of crypto in exchange wallets.

Keeping Private Keys Safe

Next come the private keys. These act very similarly to passwords, and are very important for crypto wallet security.

This means that losing them or letting them fall into the wrong hands can lead to total loss of assets.

Some great ways to keep your private keys safe include storing them offline.

Remember to write down your private keys on paper, and store them securely. Avoid storing them on your phone or computer, where they can easily be hacked.

Another way to keep your private keys safe is to use a passphrase, which is easier to remember and just as secure.

If you hold large amounts of crypto, consider a metal backup—a piece of metal you can etch your private keys onto, to make them damage-proof.

Basic Precautions To Securing Your Wallet

Here are some precautions to follow if you use a software wallet:

1. Only download your software from official sources to avoid downloading malware-infected versions.
2. Remember to enable Two-Factor Authentication (2FA) for an extra layer of security.
3. Always keep your software updated, as new versions typically contain security patches
4. Use a strong password to help protect your wallet. Use a password manager to store it securely, if necessary.

Phishing Scams And How To Avoid Them

One of the biggest ways that scammers use to gain access to crypto wallets is through phishing.

These scams are designed to trick crypto users into revealing their private keys and crypto wallet credentials.

Always be wary of suspicious emails and messages. Never click on unknown links or respond to unsolicited requests.

Remember to double-check website addresses, because hackers often create fake websites that mimic legitimate ones.

In addition, never share your private keys with anyone, and remember that no legitimate service will ever ask for your credentials or passwords.

Best Practices for Hardware Wallets

As mentioned earlier, hardware wallets provide maximum security for many use cases. However, they still require careful handling.

Only purchase these devices from reputable vendors, and avoid getting wallets from second-hand sellers or unofficial sources.

Set a strong PIN if you do acquire one, and make sure that it is one that cannot be easily guessed—like dates, addresses and so on.

Finally, remember to keep your recovery phrase safe and update your firmware when due.

Planning for the Worst

No security plan is complete without having a solid backup strategy. Some of the best ways to do this include:

1. Creating multiple backups. Try storing multiple copies of your recovery phrase and private keys in locations you know are secure.
2. Test your recovery process and make sure you can restore your wallet using your backup, before the need actually arises.
3. When you have your backups in place, make sure to store them in a safe, or any other secure location

In addition to the above, your internet connection could be the weak link in your security:

1. Consider using a VPN, especially when on public WiFi. Either this, or avoid using public WiFi for transactions altogether.
2. Instead, use a secure network whenever you need to handle crypto transactions.
3. Finally, keep your Operating System and Antivirus Software Updated to protect against cyberthreats.

Staying Informed

Knowledge is power, and this is true for the crypto space.

1. Consider staying up to date with the latest threats by following reputable sources of information in the space.
2. Read articles and watch videos from trusted experts if you must.
3. You can also join online communities and learn from the experiences of other crypto users.

Finally, remember to make proper research before investing in any project.