After several successful hacking attacks that resulted in the loss of millions of dollars’ worth of cryptocurrencies, the key question that swirls among cryptocurrency users is: What is the best way to protect cryptocurrency wallets from hackers?
We must admit that there is no perfect way to overcome this problem, but by following some tips you can protect your cryptocurrency wallet from being hacked.
Use a secure wallet and get it from a reliable source
You should be careful of any service designed to store your money online. Many cryptocurrency exchanges and online crypto portfolios have suffered security violations in the past and these services generally still do not provide adequate insurance and security to be used to store money like a bank. So, select the best and download them only from their official source such as TrustWallet and download them only from the official website.
Multi-signature anti-theft protection
For example, the Bitcoin currency includes a multi-signature feature that requires the signatures of multiple people before the funds can be transferred. Also, some wallets offer multi-signature portfolios, allowing users to control their crypto assets while preventing any hacking from stealing money by compromising a single device or server. Hence, in order to keep your wallet safe, do not use a single signature to authorize any transaction.
Encrypt your wallet
Many of the encrypted digital wallets added additional technologies to enable access such as face recognition or fingerprint technique or even two-step verification to authenticate the entry process so as to avoid the possibility of hacking the wallet on your phone if you mobile phone was accidentally lost.
Signing offline transactions
This policy includes two computers that share some parts of the same wallet. You must detach the first one from any network. He is the only one who owns the whole wallet and can sign transactions. The second computer is connected to the network and contains only a monitoring wallet that can only create unsigned transactions. By this way, you can safely create new transactions on the online computer and save it on an USB key. Sign the transaction with the offline computer. Send the signed transaction with the online computer such that it is completely off the road in front of internet hackers. It is advisable to keep the wallet key and the recovery phrase in a way away from the internet like saving it on a paper or a device that isn't connected to the Internet.
Securely save encrypted digital coins between cold and hot wallets
Cold wallets are combined of high security and ease of use. These are small devices that are designed from the root to be a wallet and nothing else. No software can be installed on them, making them extremely safe against computer loopholes and online robbers. For cold portfolios, it can be used for long-term investments. Hot wallets, on the other hand, should be used for the daily trading purposes.
Backing up your wallet
You need to back up your wallet periodically to make
sure that all the new Bitcoin addresses that you created are included in the
backup. This should come alongside with wallet encryption. Though, all applications
will soon use the wallets you only need to back up once.