Cryptocurrencies will be the future of finance, and we can’t afford to ignore the fact. Instead, we need to make certain that they are adequately regulated.
Many countries have taken steps to authorize their use under banking and tax rules and regulations, including the United States and EU countries. Many governments have established legislation restricting their use because of worries about price volatility and potential use for money laundering and criminal transactions.
The production and transfer of a cryptocurrency are controlled by cryptography, and the protocols that underpin bitcoin are reliable. Because there is no single point of failure, Bitcoin’s use of distributed ledger technology (DLT), also known as the blockchain, provides miners involved in the network with all the transactional information, which can be hardly altered, but still can be visible to all the miners. However, the parties involved remain anonymous, removing the risk of information leaks in traditional banking systems.
The blockchain and the introduction of DLT have not prevented criminals from breaking into users’ crypto wallets and stealing their funds. Cyber hackers are more likely to target platforms that allow users to make payments and exchange cryptos, as well as crypto wallets that store bitcoin.
Since the ethereum-trader.io, its value has fluctuated between $29,000 and $63,000 thus far in 2021, making attacks profitable.
The following are some of the ways to keep your cryptocurrency safe:
Use a Cold Wallet
Cold wallets, unlike hot wallets, have this feature, which allows them to stay active even when they are not connected to the internet, preventing attempted hacks. Furthermore, because these so-called hardware wallets are not encrypted, keeping your private keys in them is the best option.
Use of Secure Internet Connection
One of the most important approaches is to use a secure network connection that prevents third-party interference. Also, avoid performing crypto transactions over public Wi-Fi, as this increases the danger of hacking and makes it easier for hackers to access your wallets.
Also read, How to Buy Ethereum in Canada
Additionally, employ a virtual private network (VPN) to lessen the danger of cyber-attacks. When you use a VPN, your IP address and location are changed from before.
Utilize Multiple Wallets
Using numerous wallets reduces the danger of being hacked and keeps the cryptocurrency in the wallet safe. You can use one wallet for trading and another for making investments or anything else. This is permissible because there are no restrictions on the usage of wallets.
Continuous Change of Password
We frequently reuse passwords across several accounts and do not change them for years. This is a dangerous habit to develop. Make sure you use various passwords every day, and even when you suspect a hack has occurred. Changing passwords keeps the hacker guessing. For increased security, use separate passwords for each wallet and make sure to have two-factor authentication (2FA) or multi-factor authentication (MFA) enabled.
Avoid Getting Phished
People nowadays are easily fooled by phishing scams. Consumers are duped via email and harmful advertising, resulting in a more significant risk of losing cryptocurrency. While making the transaction, you should avoid clicking on any dubious links or advertisements.
Crypto core, a group of hackers, used the strategies and began a phishing campaign in a recent case of cryptocurrency theft. In less than two years, they targeted companies in the USA and Japan, stealing bitcoins worth $200 million.
According to ClearSky, before commencing the spear-phishing attack, the Crypto core team launched a phase to identify the accounts of employees and executives. The assaults were carried out by impersonating related firms and placing harmful URLs in emails and documents.
Wrapping It Up
With each passing day, the bitcoin market evolves, and there is no doubt we will be using cryptocurrencies for daily and business transactions over the next few years. However, because of its vast range of applications and possible evolution, cyber hacks are likely to become more common. In such a situation, it’s critical that we keep our cryptocurrencies safe in our wallets while employing a variety of tactics to reduce the likelihood of someone hacking and stealing the coins.
The solutions listed above are simple but effective ways to keep intruders at bay and make your cryptocurrency safer.