Cryptocurrencies are becoming more and more popular, and as their value increases, so does the importance of protecting them. If you’re not careful, hackers can steal your cryptocurrency.
No matter which type of wallet you choose to store your currency, you should take critical security measures before storing any significant amount of money. These steps can help keep your funds safe from hackers.
1. Create Strong Passwords
Protect your funds by using two-factor authentication (2FA). If you’re logging into an account with 2FA, the service will send a code to your phone via text message every time you attempt to log in.
If someone steals your password, they won’t be able to withdraw money without also having access to your phone. To further increase security, think of a strong phrase or sentence and use all caps when creating it; this ensures that passwords are complex for humans to guess but easy for computers to decipher.
2. Use VPNs (Virtual Private Network)
A Virtual Private Network (VPN) creates a secure connection between two points over the internet. Thus, anyone snooping on public Wi-Fi can only see encrypted data between you and your VPN, not the websites you’re visiting.
While this protection won’t stop an attacker from stealing your passwords or private keys, it will make it much more difficult for someone to gain access to them. Having your data masked by a VPN prevents hackers from intercepting sensitive information.
3. Use Decentralized Exchanges
Because centralized exchanges, like OKX, store unlimited amounts of user funds, they’re an attractive target for hackers looking to steal money. Decentralized exchanges (DEXs), on the other hand, operate in a peer-to-peer fashion without ever holding users’ funds or personal information; this means there’s no central point of failure, and users are in control of their assets at all times.
4. Keep Tabs On Your Portfolio
On average, crypto traders check cryptocurrency prices 30 times per day. These short visits to price websites are accessible to fake in crypto-jacking scripts.
It’s crucial that you only visit the websites you need, don’t click on links or ads, and avoid using public WIFI when conducting transactions. While it isn’t necessary, using VPNs is a straightforward way to keep your data safe; the same goes for 2FA. The only problem with VPNs is that they can be expensive, but you can get VPN deals if you shop around on Black Friday.
5. Utilize Cold Storage
Leaving funds on an exchange exposes them to all kinds of threats. Not only do they have the highest chance of being hacked due to their centralization, but there’s also a risk that governments will force exchanges to freeze accounts during investigations.
It’s best to move your funds onto a wallet that you control to eliminate these threats. The two most popular options are hardware wallets and paper wallets.
It’s practically impossible to protect yourself 100% from hackers, but that doesn’t mean you shouldn’t take advantage of available preventative measures. While it isn’t necessary, using VPNs is a straightforward way to keep your data safe; the same goes for 2FA.
If you want to store large amounts of crypto on exchanges, use decentralized platforms instead – they offer greater privacy and security than their centralized counterparts.
Finally, never click on links or ads when visiting price websites – if there’s something important you need to check, type in the URL manually, so you know exactly where you’re going and what you’re downloading.