How to Secure Your Crypto Wallet

In June 2022, hackers stole $100 million in crypto from a Blockchain Transfer Protocol and left it with a total loss of over $1 billion in 2022 alone. Cryptocurrency wallets are prone to attacks from hackers, and from time to time, there is a need to secure crypto wallets.

After hackers launched an attack on hundreds of customers' accounts on Crypto.com in January 2022, the CEO, Kriz Marszalek, announced that the crypto exchange would shut down. The exchange platform shut down its services after losing 4,836.26 ETH, 443.93 BTC, and approximately US$66,200 in other currencies.

As crypto communities expand, several attacks have caused exchange networks and individuals to lose millions of dollars. Other notable attacks are USD 80 million stolen from AscendEX in 2021, about $97 million stolen from Liquid in 2020, and approximately $275 million in digital currency assets stolen from KuCoin in 2020.

It is essential to know that hackers and cybercriminals can compromise your blockchain and cryptocurrencies, and you must be ready to take measures to protect them. You must understand what attacks your crypto wallets can be exposed to and how to secure them.

Causes of attack on your cryptocurrency wallet

Attacks on blockchain and cryptosystems can come from various factors, from social media engineering, phishing, and targeting coding mistakes. An attack can be either active or passive, coming from insiders or outside factors. 

A passive attack occurs when a hacker obtains unauthorized access to your data through eavesdropping and intercepting the communication channel. 

A passive attack's main goal is to gain unauthorized access to information. Passive attacks can include intercepting and eavesdropping on a communication channel. This means that a hacker can steal your data without your knowledge.

An active attack is when a hacker conducts an unauthorized deletion of information and denies access to information to legitimate users.

Below are five common types of attacks on your blockchain wallet.

1. Crypto Malware

Malware is malicious software criminals use to get unwanted access to your computer. Once your computer is infected with malware, you will be unable to access your information because the malware will encrypt all the data on it. Crypto malware attacks are also known as cryptojacking. 

Crypto malware can enter your computer as other malware, which can be delivered to your email as attachments. Crypto malware will not attack your computer directly, but it will embed malicious codes into programs and applications used to steal users' information. When a crypto malware attack is successfully carried out, the perpetrators may extort money with the users' information.

2.  Phishing

Phishing occurs when you enter your information on illegitimate websites. The mystery around phishing is that the websites are always forged from the original ones. That is, they might have a similar name with just a change in a letter. The websites usually look authentic.

3.   2-Factor Authentication (2FA)

Cybercriminals can attack your crypto wallet if you set up 2-factor-authentications with SMS. Hackers only need your name, surname, and phone number. Many hackers have deceived mobile operators by giving them access to any account linked to the hacked mobile phone.

4.    Stealing passphrases and secret keys

Some crypto wallets can be compromised to get your passphrases and secret keys through web extensions and third-party applications. If you save the keys, passwords, and passphrases somewhere on your phone or computer, and your phone is hacked, it will be easy for hackers to access them.

When a hacker gets hold of your secret keys, he can transfer the funds in your wallet to his wallet. Since transactions cannot be tracked on the blockchain, that is the end of it. 

5.            Fake Mobile Apps

In 2018, hackers created a fake app for the crypto exchange application, Poloniex. The application was uploaded on the Google Playstore, and many traders downloaded the fake app instead of the original application.

Hackers can go a long way to carry out their attacks, but you must be ready to secure your crypto wallet to avoid falling victim.

How to secure your wallet

Your wallet is like a mother-hen leading her chicks through a street. When a chick is not under the feathers of the mother-hen, a hawk can come down from the sky to steal it away. As a crypto user, you are your own bank. You must keep all the money, assets, and information in your custody safe.

To secure your wallets, you must ensure that you carry out the following:

1. Change your password regularly

To avoid a breach of private security in our digital world, always ensure that you change your passwords regularly. With this, it will be hard for hackers to predict what the password could be. 

As often you change your passwords consistently, save the passwords carefully. One piece of advice is not to keep the password on your browser, and you must ensure that there is no personal information in the password.

2.  Store your private keys offline

When you store your wallet's private keys offline, it will be hard for hackers to hack your account by stealing them. You can also store backups of your private keys in places that will be hard to locate.

3.  Beware of Phishing

Phishing scams are one of the most famous ways hackers use to access crypto wallets. It is essential to be careful of third-party apps and websites.

Before putting your wallet information, password, and private keys on any website or application, you must make sure that you verify them carefully. You must not click on any email attachment unless you confirm the source.

4. Do not use public WiFi to access your wallet

Public WiFi can steal your crypto information when you use it to access your wallet for transactions or exchanges. You c

an also use VPNs to hide your IP address and location. This will ensure data privacy and protect you from being tracked or eavesdropped.

5.  Update yourself on the latest threats

As the days go by, attackers develop new cyber threats and attacks. You must stay up to date to protect your investment from hackers.

Conclusion 

There are several reports of threats and attacks on crypto wallets every day. You must be on the lookout to keep your investment safe and secure from hackers. Remember that crypto activities cannot be tracked, and you must be ready to do all it takes to keep your wallets secure from hackers.