Crypto Security: How To Protect Your Cryptocurrencies From Hackers

Protect Your Cryptocurrencies From Hackers” with essential security tips and best practices. Safeguard your digital assets from potential threats and avoid becoming a victim of crypto-related fraud. Discover how to keep your cryptocurrencies safe and secure, and ensure the protection of your investments

The challenges posed by Cryptocurrency crimes of recent has been a worrying issue that needs to be addressed. Investors and Companies have both had their own share of the unsavory experience posed by Crypto Hackers and scammers with some Centralized exchanges losing Investors funds to hackers and crypto enthusiasts also losing their cryptocurrencies to Rugpulls, Honeypots and phishing scams.

Recently, the US Department of Justice seized $3.6 billion worth of Bitcoin related to the Bitfinex hack, after hackers made away with 119,000 Bitcoins they stole from Bitfinex exchange in 2016.

But that isn't even the most worrying part as Crypto crimes are increasing at an exponential rate every passing day and Crypto crime hit $14 billion in 2021 alone.

However, despite all these challenges posed to the Cryptocurrency ecosystem, there are still numerous ways you can protect your funds from the heartless criminals.

How To Protect Your Cryptocurrencies From Hackers

Most of the time when people lose their cryptocurrencies to hackers, it is because they refused to take heed to warnings or are Greedy.

Most cryptocurrency losses can be prevented by the click of a button, you could save yourself the agonizing experience of losing your hard-earned money to thieves by just following simple guidelines and instructions.

Here are things you need to do to prevent yourself from being hacked.

Minimize Your Use Of Centralized Exchanges 

Believe it or not, the most common victims of crypto hacks are centralized exchanges. Most centralized exchanges lack the needed sophisticated tools and softwares needed to prevent hackers.

It will be wise on your part to minimize your activities on exchanges. Once you're done buying a coin on an exchange, move your funds to your wallet and don't leave it in your account on the exchange.

You might wake up the next morning and find out that the XYZ.com exchange you used has been hacked.

In addition, when you put your cryptocurrency on a centralized exchange, you're trusting the platform to secure your private keys and your funds which means that if the exchange is hacked, you've been hacked. Which is why it's not advisable to store your digital assets on a centralized exchange.

Disconnect Your Wallet After Using A Decentralized Exchange

DEXs (Decentralized exchanges) are not 100% immune to Crypto hacks but they're way better than CEXs.

If you trade on a DEX don't leave your wallet connected to the exchange after you've completed your transaction, disconnect your Cryptocurrency wallet. If you do this you have protected your wallet from Hackers who might try to breach the exchange's security.

Use Hardware Wallets (Cold Wallets)

Cold wallets are offline wallets that can be used to store your private keys offline. A saying goes thus; “If it's on the internet it can be hacked” this statement has been proven through overtime.

Cold wallets isolate your private keys from the internet thereby giving you an extra layer of protection against Hackers phishing sites, and malware.

They're multi-blockchain compatible plug-in devices you can use to access your wallet and decentralized applications (DApps).

Trezor model T and Ledger Nano X are currently the best hardware wallets available.

Watch Out For Phishing Attacks

Phishing is a cyber attack where a malicious actor poses as a reputable organization in order to deceive the organization's customers and collect their sensitive information.

Phishing comes in different forms: Clone phishing, Pharming, Website redirects, Whaling, Email spoofing, Typosquatting, Malicious applications and Giveaways e.t.c.

However, Most scammers use the format of creating clone websites of popular Exchanges and Crypto platforms.

To illustrate, they might simply send you an email or message, telling you to login to your Coinbase account and add an extra layer of security or claim a reward. Once you click their link and enter your details into the fake Coinbase website they can use it to access your real Coinbase account and steal your digital assets.

They might also create a fake version of an application or Wallet and use it to extort you or send you a link to access in your DApps then once you connect the DApp to your wallet they transfer your coins to another wallet.

To prevent phishing attacks: 

1. Avoid any offer you receive that sounds too good to be true; If they're asking you to click the link in your DApps  and stake your Cryptocurrency for unrealistic rewards avoid it.
2. Don't click random links sent to you on social media or via email.
3. Always bookmark your original sites and access them through your bookmark or browser history.
4. Confirm the URL you're about to click so you don't end up on a fake website.

Related: Best Cryptocurrency Investment Strategy

Watch Out For Dusting Attacks

A crypto dusting attack happens when hackers and scammers try to spy on a cryptocurrency user by sending tiny amounts of a coin to his wallet. The aim is to track the transactional activity of the wallet so the attacker can analyze different exchanges linked to the wallet and deanonymize the person or company behind the wallet.

The scammers send a tiny amount of a coin (dust) to the targeted wallet. Once their victim unknowingly sends the dust token to an exchange, they can Identify the owner of the wallet and use their knowledge to target him with phishing attacks.

To prevent dust attacks:

1. Don't move the dust: For a dust attack to take place, the funds (dust) must be transferred.
2. Always monitor your balance.
3. You can use a hierarchical deterministic (HD) wallet.
4. You can use a virtual private network (VPN) to increase your anonymity.

Use A Secure Centralized Exchange

Let's face reality, Centralized exchanges are an integral part of the Cryptocurrency ecosystem.

We can't do without using centralized exchanges, they're the only avenue through which crypto enthusiasts can purchase digital currencies with Fiat and can also be used as a marketplace for coins from multiple blockchains.

In view of the above, the only solution is to put necessary security measures in place.

Coinbase and Binance are popular exchanges that put up the best security (Most notably Coinbase), Crypto.com is another safe exchange.

Conclusion

While Hackers and Scammers are not relenting in their quest to discover new methods with which they can steal cryptocurrencies from Investors, you should also stay up-to-date on latest trends and new measures to protect yourself from this criminals.