IMPORTANT TO KNOW
Theft of crypto wallet credentials is on the rise
The rise in value of cryptocurrencies makes them a tidbit for fraudsters and hackers, mainly hackers are interested in the most expensive assets such as BTC and ETH, The popularity and rise in prices of Bitcoin and Etherium means that virtual currencies often become a target for hackers who want to exploit these valuable assets. “The economics of hacking suggest that attackers will continue to gravitate toward digital currencies as they increase in value and become more common in our daily lives,” says Jack Mannino, CEO of nVisium , a Falls Church, Virginia-based application security provider. What’s more, it’s sometimes impossible to track the work of hackers because traces of their actions are so easily erased by software. If Tracking hackers is often a difficult task because their traces can be digitally erased. Attackers take advantage of the fact that any cryptocurrency and cryptocurrency wallets are based on anonymity, so in the case of hacking or theft of such data, the previous owner legally has no rights to make claims. Forewarned is forearmed. A necessary minimum that will help protect your money:
Hybrid approaches to security
While online wallets are quite popular and convenient, we strongly advise against using them to store most of your cryptocurrency, as many hackers attack them daily. Standalone wallets should be used to store the bulk of your digital currency, according to Terence Jackson, security specialist at Thycotic. “The physical wallet should be thoroughly protected, such as stored in a safe deposit box or in a safe deposit box,” he says. “To my clients, I recommend that they don’t keep their private and public keys in the same place. Both should be under passwords and encrypted.” As this type of savings grows in popularity, so does security. But the responsibility will always be yours alone.
Two strong passwords are key
Try to come up with different passwords for your account, because at any time there could be a data breach, and that’s always in the hands of hackers. “Imagine if all passwords were compromised,” says Kevin Dunn, president of Greenlight, a provider of integrated risk management solutions. “Despite the technological sophistication of cryptocurrency, the surest way to increase security is through proven techniques,” he says. “Make yourself invulnerable to hackers, set up a strong access code for each wallet, and preferably one with two-factor authentication. If necessary, you can use a password manager.”
If you work with brokers, applications, trading on the exchange, use the most reliable cryptocurrency wallets.
When choosing a platform, you should pay attention to security to understand what kind of data and how it will be protected. “Companies that position themselves as trustworthy are required to use multi-factor authentication, SSL/TLS encryption,” says Austin Merritt, a cybercrime threat detection specialist at Digital Shadows. We recommend using multiple cryptocurrency platforms, and using complex passwords in each. We advise using a password manager so you don’t lose your passwords.
There are now many mobile apps for buying and storing crypto. As cryptocurrency becomes more expensive, criminals are trying to set investors up with phishing campaigns to steal your credentials. So, be careful before clicking on links sent to you via texts, messengers or emails. If everything is more or less clear with phishing, you should be aware of the existence of programs that capture keystrokes on the keyboard. It should be remembered that antivirus is necessary not only for your computer, but also for any mobile device.
You need to know how exactly the purse is used in transactions
The purse is the data and the code, this is the greatest value for intruders. Before using it, make sure as much as possible that the system is not compromised. Investors working with large sums of money should take the time to evaluate the risks. Cyberattacks are staged. They first establish a fulcrum and expand before attacking the main target (your wallet).
Cryptocurrency protection methods
More and more investors, including those without experience and with no basic skills, are including cryptocurrency in their portfolios. Considering the fact that this market is not controlled or regulated by any banks or governmental organizations, the responsibility lies entirely on the players. It is practically impossible to compensate for the losses, but a good anti-virus will help protect your secret key.
Bitcoin mining USB devices on a large USB hub.
Do not trust your secret key to anyone
A secret key is a proof of transaction or more precisely, a proof that the sender or the recipient has the account. Among the safe ways to store this key is cold storage, which is the unpacking of the key and erasing all traces. Among the safe ways is the alternate arrangement of the words. Such a combination should be kept on paper separately from other documents.
Limit the use of wallets offered by companies
There are ways to store crypto on your laptop or desktop computer, this is not a bad way as opposed to storing funds on the wallets of provider companies that store funds on their servers outside of your control. Despite the risks, it is the most popular method due to the effort and time it takes. The risks of this method are: an attack on the company’s facilities, liquidation of the provider, sanctions from the government or other organizations. There are devices that store the private key in an encrypted form. This is safer, the risk is only associated with damage or loss of the device.
Cold wallets have their own disadvantages for active traders
One of the information systems security officers at Digital Shadows, Thomas Beek, said that cold storage is completely secure and self-contained. It requires either a piece of paper or a device. It is really suitable for investors who do not plan to engage in margin trading in cryptocurrency because the process of transferring crypto to and from exchanges will involve a lot of commissions. The main advantage is that only you have access.
For traders, hot storage methods are more suitable, but it is also the most vulnerable in terms of security.
If you have constant access to the World Wide Web, which simplifies access to the exchange, this is a great option for traders. This option will allow active traders to conduct transactions on the exchange as quickly as possible. But consideration should be given to the amount of funds that will be involved there. Cybercriminals are always close to major exchanges looking for the right moment to attack, the vulnerability, and it does not depend on the platform or how it is located. A potential attack could happen at any moment.