Since their introduction, cryptocurrencies have faced threats from hackers and cyber attacks, making it crucial to understand how to secure your crypto wallet. With this in mind, we put together a guide to help you protect your crypto wallet from hackers and cyber threats. We will also cover the most common security risks for crypto wallets and highlight some of the safest options available.
How to Protect Your Crypto Wallet From Hackers
You can secure your crypto investments in several ways. However, the most important thing is to use reputable platforms when choosing a crypto wallet. You should also create strong passwords and enable two-factor authentication.
Other ways to protect your crypto wallet from hacks include storing your private keys offline and creating a strong seed phrase. These wallet protection methods will shield you from common threats, such as phishing and malware attacks.
Here’s how these methods can help you protect your crypto wallets.
Using a Secure Platform
If you’re using a hot wallet to store your crypto, use a reputable platform that utilizes rigid security measures. Moreover, when creating a crypto wallet, give preference to non-custodial wallets. Non-custodial wallets will give users complete control over their funds and private keys.
Creating a Strong Password
When creating your account, use a strong password that includes a combination of numbers, words, and special characters. Moreover, make sure your password has ten or more characters.
Two-Factor Authentication
2FA is a security process that includes two different authentication factors. The first usually includes a password, while the second includes a fingerprint or facial scan. By enabling 2FA, you’ll add an additional layer of security to your wallet.
Avoid Using Public WiFi Networks
Public WiFi is vulnerable to hacks, so you shouldn’t use it to access your wallet. You should also check the URL locks. Avoid sites that don’t have an SSL security mark in their URL and those that start with HTTP instead of HTTPS.
Encrypting Your Wallet
Wallet encryption implies using cryptography or advanced algorithms. These algorithms will convert private keys into unreadable forms. These forms can only be decrypted with the correct key. This means that no one will be able to use your private key if they don’t have the correct decryption code.
Using Hardware Wallets
Using hardware wallets and an offline crypto wallet app is the most secure way to store your private keys. Unlike hot wallets, cold wallets are not connected to the Internet, so your private keys will be stored offline.
Using a Seed Phrase
A seed phrase, also known as a recovery phrase, is a sequence of 12 to 24 random words. A seed phrase acts as a master key, i.e., it provides access to private keys. To protect your crypto wallets, create a random seed phrase that doesn’t have a predictable pattern. On top of that, you should never share your recovery phrase.
How Is a Crypto Wallet Protected?
Now that you know how to secure your crypto wallet, you’re probably wondering how wallet providers protect their users. Some of the most important security features that every crypto wallet must have include:
With that in mind, many crypto wallets have a built-in encryption feature. They also use two-factor authentication and biometric authentication. A safe Bitcoin wallet will conduct regular audits and security updates to identify potential software vulnerabilities.
Some providers will also have a CC EAL certification. There are seven evaluation assurance levels. A higher level equals higher security. This means that crypto wallets with a CC EAL1 certificate will be less secure than those with a CC EAL7 certificate.
What Are the Most Common Crypto Wallets Security Threats?
The most common crypto wallet security threats include malware, phishing, and exchange attacks. Malware attacks involve inserting viruses or malware codes into your wallet. Hackers will use these codes to steal your private keys and stored funds.
For example, once you conduct a transfer, the malware code can redirect it to another wallet address. Hot wallets are more susceptible to these attacks since they are connected to the Internet.
Phishing attacks involve using fake identities to force the victim to send their private keys. For example, a hacker can send an email with a link to a fake website, through which they will ask victims to enter their private keys.
Exchange attacks refer to the hacking of crypto exchanges. If hackers attack a crypto exchange, they can steal the funds from all crypto wallets connected to it.
What Is the Most Secure Crypto Wallet?
Some of the best crypto wallets for secure transactions include:
In our opinion, the Best Wallet is the most secure crypto hot wallet. This non-custodial wallet uses sophisticated encryption tools to manage its users’ private keys, including 2FA and biometric authentication. Moreover, all funds are insured by a third-party provider, Fireblocks, one of the safest custody platforms.
On the other hand, Exodus has the most secure wallet app that’s compatible with iOS and Android devices. This non-custodial wallet is also integrated with Trezor, which stores its users’ private keys offline.
When it comes to the best cold wallets, this title belongs to Ellipal, Ledger, and Trezor. Ellipal is a CC EAL 5+ certified hardware wallet that’s fully air-gapped, while Ledger and Trezor are best known for their secure element chips.
Conclusion
To sum things up. How to secure your crypto wallet? Use reputable platforms, create a strong password, enable 2FA, and avoid using public WiFi. You should also give preference to non-custodial and hardware wallets. These types of wallets enable their users to have full control over their private keys and to store them offline. To protect yourself from malware, phishing, and exchange attacks, opt for wallet providers that utilize strict security measures, such as MFA and end-to-end encryption.