With the evolution of cryptocurrency in recent years, the system has become increasingly susceptible to hacking. This can be particularly concerning to you if you have digital holdings because everything is held in cyberspace. When hackers run off with your cryptocurrency, it is gone. There is theoretically no way to get it back. This is why you will want to spend some time reviewing your efforts to keep your crypto assets secure from hackers. Here are some suggestions to get you started.
Opt for Cold Wallets
This is a practical strategy if you do not conduct a lot of transactions involving cryptocurrency. These wallets are never actually connected to the internet. This means that they become virtually hacker-proof. If you do not need to exchange your cryptocurrency very often, then this is a highly secure way to hold onto your assets.
Many cryptocurrency traders will keep a majority of their assets on a cold wallet, while leaving a small amount in a standard wallet for regular spending. You can securely trade cryptocurrency from your cold wallet when, for example, you want to convert BTC to INR for fiat transactions. Most investors use hardware wallets like USB drives to keep their crypto assets secure from hackers.
Make Sure You’re Using the Right Crypto Address
When you go to exchange cryptocurrency with anyone, it is critical to check and double-check the address you are sending it to. Some hackers have become quite adept at changing the address on you right at the last minute, thereby effectively siphoning off your funds. Verify it two or three times before you hit the send button. Remember, if you send it to the wrong address, even if by accident, then the money will likely never make its way back to you.
Consider Using Multisig Wallets
Requiring multiple signatures is a great way to protect your crypto assets. This will mean that you need several different layers of approval, each one independent of the other before a transaction goes through. You can request up to five signatures in some cases if you have a need to be ultra-security conscious.
Use Manual Safeguarding Techniques
There are some strategies that you can implement on your own to keep hackers away. You will want to start by using a secure password. This might seem obvious, but it is still amazing how many traders use a password that is simple for hackers to discover. You will also want to use state of the art anti-virus software that is automatically updated regularly.
Multi-Factor Authentication is Useful
If you are like most people today, you have easy access to several devices right at your fingertips. You can use this to your advantage when sending money from your crypto accounts. Multi-factor authentication is a great way to verify your identity. If a hacker tried to use your account, you would actually be alerted because you would be asked to confirm the transaction on your trusted mobile device. This is yet another layer of defense that can go a long way towards thwarting the efforts of any hacker out there that is trying to steal from you.
While these five strategies will not guarantee you will not fall victim to hackers’ efforts, they will help solidify your position. The key is to make it as difficult as possible for hackers to get at your crypto accounts. If you can do that, then you should be just fine in the end.