The demand for cryptocurrency is soaring high! People all over the world are switching to paperless transactions, and, cash payments are becoming a relic of the past.
The increasing demand for crypto assets is making it increasingly vulnerable to attacks from online hackers and scammers.
Especially, people who are new to cryptocurrency are unable to navigate through the complicated yet lucrative world of crypto and easily become prey to cyberthieves and hackers.
But how they do it is often a mystery – but you can certainly protect yourself from such situations.
If you’re on the same boat and want to know everything on how to protect your crypto wallet from online hackers, this is the place for you.
Let’s start with the basics….
6 ways cybercriminals may hack your cryptowallet
What’s the one thing that makes cryptocurrency better and secure than other online transactions?
Their peer-to-peer system, which relies entirely on blockchain technology: meaning the crypto transactions happen between the sender and the recipient with no financial institutions (or any third party) in between.
In fact, the word “crypto” itself means encryption, ensuring the protection of data and the validity of the transaction.
Transacting cryptocurrencies are often considered the safest because there is no centralized place for storing the data.
However, that doesn’t stop cybercriminals to perform fraudulent transactions and steal your crypto assets. Cybercriminals use sophisticated techniques to crack digital wallets and steal/transfer crypto assets without the user’s knowledge.
1. Phishing
The most common way of stealing cryptocurrency is by fooling people to give out their access, themselves. People receive emails claiming to come from legitimate sources, like government agencies, charities, that often look authentic and genuine.
To increase the effect of posing authentic, sometimes confirmation emails or “ potential hack” emails are sent to potential targets – making it look genuine as possible. These emails encourage people to click on the links to donate or even purchase items.
Anytime the target clicks on these links, it directs them to malicious sites, making it easy for hackers to get personal information, including the private key for crypto exchanges.
2. Posing as Investors
Often, scammers entice their targets by promising higher returns on their cryptocurrency investment. They leverage social media and emails to contact the targets and trick them into their trap.
3. Through SMS verification
This type of hacking is specially targeted at people involved in cryptocurrency operations. Mobile phones are used to turn on 2FA and they hack the process by intercepting the SMS confirmation messages. Cyber scammers hack the information and then ask the targets to verify the malevolent transaction to re-access their crypto-wallet.
4. Ransomware
In this type of crypto theft, malignant programs crack the target’s system and the files. Then, the hackers take advantage of the situation by asking the target to decrypt the programs in exchange for cryptocurrency.
5. Mobile applications
When using mobile applications, you are not really protected against crypto hackers, no matter what kind of trading mobile applications you use.
The faulty buildup and security backdoors are often exposed to cyber-attacks. The hackers get through the apps by leveraging data leakage which exposes sensitive information of the client. The hackers attack the target in different ways and manipulate the market positions by dropping or even creating that demand for crypto assets.
6. Hacking secret keys
In cryptocurrency, there are two types of keys, public and private and it is the core of protecting the financial operations involving crypto wallets. The private key is used as a digital signature for our authentication for crypto holders and it authorizes crypto transactions. The other one, the public key is used to secure the private key.
If the hackers get hold of the private key, then the cryptocurrencies are exposed, and they can easily transfer all the funds, to their wallets, without a trace of the transactions
Ways to Protect and Safeguard your crypto wallet from digital exploits
Despite the security risks, there are a few ways to secure and protect your cryptocurrencies from being exposed to hackers.
https://the-bitcoin-traders-app.com/pl/login gives you a secure and protected bitcoin platform where you can trade as much as you want, without the need to worry about hackers.
Jotted down are a few ways how you can protect your wallet from cyber hackers and their malicious activities:
Use a Trustworthy Password Manager
It’s not always possible to memorize the code that helps you access your crypto wallet. The ideal way to work it out and to ensure your crypto wallet is safe is by using a trustworthy password manager.
The password manager will store the code at a place and you don’t have to worry about losing or forgetting your wallet code.
Use two wallets
The online transactions of cryptocurrencies take place in two types of wallets: online wallets and offline wallets or cold storage. Act wise and smart and utilize your online wallets only for trading purposes. Make sure your online wallet doesn’t hold too many crypto assets. Use the offline wallet, mainly to store the rest of your crypto assets.
If the scammers or malware tries to crack your online password, and the rest of your assets will remain safe and secure.
Use VPN
To strengthen your online security, using a trustworthy virtual private network (VPN) is effective. A strong, good VPN protects and secures your online connection, ensure your information is safe and not exposed to hackers.
Smart crypto traders often use VPN tools to maintain anonymity online.
Leverage two-factor authentication
It’s better to have two verification processes instead of one. It increases the level of security of your crypto wallet.
Update system Software and Antivirus
You can save your crypto wallet from online hackers and malware is by updating your software frequently and also by installing a strong antivirus solution.
Routine updates will ensure your system is secure and safe from being exposed to online hackers and malware attacks.
What are you waiting for? Follow these tips and start protecting your crypto wallet against scammers and hackers.
