4 Tips to Prevent Crypto Wallet Theft in 2021

Are you afraid of losing all your hard-earned crypto to thieves and hackers? Well, your fears are valid. Over $1 billion in cryptocurrency was stolen between January and May 2020. The good news is that you can prevent such unfortunate situations.

In this article, we give you practical recommendations that will make your wallet impenetrable to hackers.

How to Secure your Crypto Wallet

Enable multiple authentication options

There are two ways to achieve this: enabling two-factor authentication and using a multi-signature wallet.

Two-factor authentication is a process that adds another security measure to your crypto wallet. It ensures that a verification code is required for any activity to occur on your account. It’s called two-factor authentication because it does not rely on your wallet password exclusively.

Another option for having multiple authentication methods is using a multi-signature wallet. Also called multisig wallets, these crypto wallets require more than one unique signature to access them. It’s like a bank account that requires the two owners to sign before any transaction can be done.

Hence, in case of a security breach where a person’s wallet password or signature is compromised, no one can access the wallet provided the other signatures are still intact.

This security measure is essential for jointly owned wallets. No single party can open the wallet without the other’s consent.

Multisig wallets can exist in various forms. For instance, four people can own a wallet, but require at least 3 of the 4 to access the cryptocurrency.

Handle your password and private key carefully

There are people that use the same password for every single online account. Don’t be like that with your cryptocurrency wallet. Even if you keep the same password for all other stuff, maintain a unique code for your crypto wallet.

Since you have opened so many online accounts, there’s a possibility that you have used your password on untrusted websites. To avoid theft of your funds, use a unique, never-been-used-before password.

That’s not all. Your unique wallet password should be hard to crack. Make sure you include upper case, lower case, numbers, and symbols. Here’s why:

Some hackers use software that guesses your password by trying several combinations of letters and numbers. So, the more “basic” your password is, the easier it is for such software to get it right.

Sure, a strong password is harder to memorize, but it’s worth the effort. You don’t want to end up losing all your coins just because your password is too easy.

Also, be careful with your private key. Never, ever give it away. In fact, we would advise that you store it in a cold, hard offline format.

Avoid Clicking Unfamiliar Links

Clicking a single harmful link can compromise your whole online credentials. Always make sure that you trust a link before clicking it. Here’s how some harmful links work:

You may receive a suspicious email or message promising you a juicy offer. Such a message typically contains a link that you need to click to “claim” the offer. If you click such a link, it immediately deposits a virus or malware in your device.

Such a virus or malware may be designed to steal your information. Many times, viruses open up a loophole or weak spot through which hackers can do their damage. Even if they do not steal your crypto wallet, they may cause damage that can prevent you from accessing it.

The best method to avoid this is to avoid unfamiliar links. Don’t even open the link in an incognito mode or a private browser.

Don’t open your wallet with a public Wi-Fi

There’s nothing that a hacker loves more than people accessing sensitive information on public wifi. It’s literally the criminal’s dream. When you are connected to the public internet, it’s much easier for someone else to access your information. This is because every single device using the same wifi is connected.

Do not access your bank apps, make online payments, or access your crypto wallet with such unsafe internet. It’s not worth the risk. To access your wallet from your phone, use mobile internet. It’s very private and safe from prying eyes.

Also, if you access your wallet on your computer, try to connect to the internet using a private network. To enhance your security, use a virtual private network (VPN). While connected, ensure that your Bluetooth is off.

Do regular software updates

Each new update comes with added security features. Many people prefer to allow the software to update itself automatically. While this is easier, there’s the risk of having an update occur when you’re trying to buy or sell. Also, software updates sometimes come with bugs that are fixed subsequently. It can be safer to take some time to check before installing the update.

Wrap up

We can’t stress the importance of these measures enough. Once your wallet is compromised, there’s almost nothing anyone can do, especially if it’s a deliberate attack. Practice these tips and your crypto wallet will be safe from thieves and hackers. Stay safe.