How to Protect Your Cryptocurrency Wallet from Hackers

How to Protect Your Cryptocurrency Wallet from Hackers

As experts in cybersecurity Miami, we get a lot of questions about how to keep cryptocurrency wallets safe from hackers. While there's no surefire way to protect your wallet from a hacker, there are steps you can take to reduce the risk significantly.

After all, if your wallet is lost or stolen, it’s incredibly difficult to get it back. And since more than $3 billion has been stolen from crypto wallets since 2012, it’s becoming increasingly more important to protect your wallet.

Let’s take a closer look at how to protect your crypto wallet.

4 Tips from a Cyber Security Miami Expert to Protect Your Cryptocurrency Wallet

1. Keep Your Cryptocurrency in a Cold Wallet

One simple but effective way to protect your cryptocurrency is to store it in a “cold” wallet, or hardware. A cold wallet is about the size of a USB device and holds a private key to access the funds inside. You can set your own private key.

Cold wallet storage is a great way to protect your cryptocurrency from hackers, but it’s important to remember that if you forget your private key, you may not be able to access your funds. So, if you go this route, make sure that you also store your private key in a safe place (like a fireproof safe) and never share it with anyone.

2. Change Your Password Regularly

If you’re storing your cryptocurrency in a hot wallet, or online, then make it a point to change your password regularly. Use a complex password and store it on a password manager to make it easier to log in whenever you need access.

When changing passwords:

  • Avoid recycling old passwords.
  • Make them complex. A strong password has a combination of uppercase and lowercase letters, numbers and special characters. Make sure your password is at least eight characters. Randomly generated passwords are ideal.

Aim to change your password every six months.

3. Don’t Use Public Wi-Fi

If you need to access cryptocurrency that’s stored online, don’t use a public Wi-Fi network. Public networks aren’t always encrypted, so your connected device may be vulnerable to hackers.

For an extra layer of security, use a virtual private network, or VPN. VPNs can protect your data privacy and prevent eavesdropping on your internet activities.

4. Use 2FA (2 Factor Authentication)

2FA is another great way to protect your cryptocurrency wallet because it adds an extra layer of security. Each time you log in, you’ll receive a verification code through text or email. You’ll need to enter this code to access your account. Unless the hacker also has access to your phone, they won’t be able to log into your wallet.

Never share your 2FA code with anyone, and remember that crypto exchanges will never call to ask for your credentials.

If you have cryptocurrency stored in a digital wallet, these four tips can help protect your investment from hackers. Taking a proactive approach to cyber security can help keep your crypto safe now and in the future.