Nowadays, cryptocurrency is showing up in numerous industries. Though we cannot tell anything for sure, the latest predictions of crypto experts sound rather optimistically: in the nearest future we’ll be able to pay in crypto for the groceries, enjoy our favourite online games on the websites and even complete tax payments with cryptocurrency.
Still, there are lots of details to consider while preparing for this financial future. You may want to read up on how blockchain technology works, discuss it with experts and equip yourself with a secure cryptocurrency wallet. In this article, we will touch on one of these topics. Here, we’re going discuss what a crypto wallet is and what the best ways of preventing it from being hacked are.
What is a crypto wallet?
The decentralized nature of cryptocurrency implies that there are no banks and therefore no bank accounts. In the world of crypto, you must become your own bank and bank manager. Instead of letting a bank store your fiat currencies, you keep your digital currency in a storage known as a crypto wallet. Similar to fiat currency banking, there are several available options. Instead of choosing between banks and accounts, you choose between providers of a specific product – a cryptocurrency wallet.
Preventing Hackers from Accessing Your Crypto Wallet
Choosing a crypto wallet that is highly secure is the first step in preventing hackers from gaining access to your wallet and stealing all your digital coins. However, you too take your share of responsibility. To make sure that the wallet remains bulletproof and unhackable, follow the tips listed below – they will help to keep your cryptocurrency safe.
Avoid public WiFi
Hackers often lurk on public WiFi connections because they can carry out different types of attacks to find cryptocurrency. One of the biggest problems is that your devices may connect to public WiFi without even meaning to. Just walking past a Starbucks you become prey for hackers. The safest thing to do is to keep your WiFi switched off or to purchase a dongle. This small trick has the potential to save you thousands at some point.
Use two-factor authentication
Two-factor authentication can serve as another line of defense if someone does have access to your passwords. However, unlike other two-factor authentication protocol which usually relies on SMS or emails, this is not the best solution. If tech-savvy hackers located your password, they are probably able to breach your email security and divert SMS too. A non-syncing application may be better in these scenarios.
Make sure your e-mail is secure
It is imperative that a secure e-mail service is employed. There are several all encrypted service providers like ProtonMail, Tutanota and Hushmail which offer you a better defense against the attempts to breach your inbox. Their encryption allows reading the e-mail only to its sender and receiver.
Be cautious when downloading
Downloading files from popular online hangouts such as Reddit, Facebook and even cryptocurrency forums is quite dangerous. These files may include malicious malware that reads your keystrokes or even shares your screen with hackers. Just don’t take the risk and install the best online security software to counter these threats.
Handle your private keys carefully
Crypto wallets come with private keys as a type of password. If you can remember these keys then great, but most of us will forget them at some point. The solution is to never keep them written on your computer. Instead, put them down and keep them stored in a locked drawer at home or in your usual safe place. Keeping them on devices is a potential security threat.
Living by these five rules will help you protect your cryptocurrency investment.