How To Secure Your Crypto Wallets

Updated on 28 November, 2022 11:33 AM
1 min read

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    What are Crypto Wallets?

    Cryptocurrency wallets store the keys for your cryptocurrency accounts, either as software or as a physical device. These keys are basically a combination of numbers and letters used to encrypt and decrypt crypto transactions and secure crypto accounts. There are public keys (much like your day-to-day traditional banking identifiers like account numbers), and private keys (like your passwords). Using these keys within the wallet, you can instruct it to transfer your Crypto from and to your account.

    Crypto Wallets can be classified in two major segments:

    • Basis Custody (Custodial and Non Custodial wallets): As the terms suggest, Custodial wallets are in control of a third party facilitator, on whose online platform, you can access your wallets to make transactions and hold your assets.
      Non Custodial wallets on the other hand, offer full independence to the investors to hold their Crypto without any outside dependancy. This allows sole access and lesser chances of security breaches.
    • Type (Virtual and Physical wallets): Physical Wallets, aka cold wallets, are similar to non-custodial wallets in the sense that you hold a small electronic device, which no one else has access to. Which of course also means, that even though these are more secure, there is also no support available if you lose them or forget your password etc.
      Virtual Wallets or Hot Wallets are available as apps or via browsers and downloads and are super convenient. The one major downside being the rare but evident occurrence of cyber fraud.

      Now that we know something about Crypto wallets and its types, here are seven of the most helpful tips to help you keep your Crypto assets secure and yourself, stress-free:

    1. Use a Cold Wallet

    To store your cryptocurrency you should not put all your coins in a single wallet. There are two kinds of wallets available called hot (digital wallets) and cold(hard drives) wallets. For example, if you are investing for a small period then you can keep in software wallets but if you are investing in cryptos for a long term then you should at least keep 80% of your assets in hard drives for security.

    2. Use 2 Factor Authentication

    To put an additional layer of security to your wallet, integrating 2FA. If someone tries to log in, you will receive a message or an email with a verification code.  For hackers, it will be difficult to hack your account. Never share the 2FA credentials and OTPs with anyone and always remember no one will call you from crypto exchanges for your credentials.

    3. Keep your seed phrase in a safe place

    Always keep your seed phrase in a safe place. It is a collection of 12 to 24 random words generated by wallet services like MetaMask. You have to enter the phrase in the exact same sequence while signing up in your wallet. There is no “forgot your password” option available, so if you forget your seed phrase, you also lose access to your wallet. Try to keep this seed phrase offline for security.

    4. Keep a strong password and change it frequently if possible

    Always avoid common passwords that can be easily guessed and used for hacking into your accounts. Always choose complex passwords with different characters and symbols and change it after a certain time. People sometimes use passwords like 123456, and abc123. Always avoid such scenarios and use the following guidelines to create a strong password.

    • You can use a combination of alphabets, numbers, and special characters
    • Also, use lowercase and uppercase characters
    • Create a password of minimum 8 letters and above and ensure that it is not easily guessed.

    5. Use a secure internet connection

    Always prefer doing any crypto transaction using a stable internet connection like your home or corporate offices. But, never use any public wi-fi for transactions unless it can lead to serious data breach and your account can be hacked.Even if you are in need to use the public wi-fi ensure you have a VPN connectivity to your network.

    6. Always double check your recipients wallet address

    Always check the sender or receiver's wallet address(a string of alphanumeric and special characters of 26 to 35 characters) before completing any transactions. Hackers can edit and post wrong wallet addresses using malicious software and if the crypto transaction is made, it can never be reversed on the blockchain network.

    7. Use updated antivirus programs

    You can use antivirus programs to protect your wallet against crypto hacking and phishing attempts. These programs scan all incoming email and flag potential phishing attacks to safeguard your wallets. You are advised to buy licensed antivirus software and keep them updated with the latest database.

    In conclusion, It is essential to always maintain a robust security strategy for your Crypto assets and don’t let any vulnerabilities occur that can lead to exploitation of your information or assets. You can use any one as per your needs or more prudently, a combination of the above which ensures a safe environment for your Crypto.

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