5 TIPS TO SECURE YOUR CRYPTO-WALLET: 2020 EDITION

– Amy Cavendish, Content Strategist at the TechFools

 

Introduction

The anonymity of cryptocurrency means that storing crypto isn’t as easy as storing it all in your bank account. Specialized software is required; this software is known as “crypto-wallets”.

Crypto-wallets allow users and investors to store all of their cryptocurrency, no matter if they’re using Bitcoin, Ethereum, or even Dogecoin. Unfortunately, however, crypto-wallets suffer from major security issues. Some of these issues lie on the user, and some of them deal with the wallets themselves.

But what exactly are these security issues? Let’s go over a few.

 

3 Security Risks Threatening Crypto-Wallets

1. Crypto-Fraud

Scammers litter the Internet, and the cryptocurrency market is no exception. Crypto-fraud runs rampant. Phishing scams threaten the financial state of many users, fake trading platforms steal millions of dollars’ worth of cryptocurrency, and the recent COVID outbreak means these scams have increased tenfold.

Learning how to identify a crypto-fraud scam from regular offers and trading platforms is key to keeping your wallet safe.

2. Vulnerable Wallets

Choosing a crypto-wallet service is a big decision. Not only does your choice affect the convenience you experience while using cryptocurrency, it affects how secure your funds are.

Certain crypto-wallet platforms suffer from major security issues, such as lax security standards and major vulnerabilities that allow cybercriminals to hack and breach other crypto-wallets.

For example, the Ledger crypto-wallet suffered from a double-spend vulnerability, a vulnerability that allows a hacker to spend the same currency more than once.

Amy Cavendish

3. Lost Wallet Information

One vulnerability that plagues thousands of users is less a vulnerability and more of a user issue. See, crypto-wallets require an ID and password—similar to logging into an account—to access and use.

If someone were to lose this information or accidentally show it on the Internet, their wallet would be at risk, if not lost forever. User error plays a big role in wallet security, and it’s up to the user to secure their wallet.

 

5 TipsTo Secure Your Crypto-Wallet

However, securing your crypto-wallet doesn’t have to be difficult. There are plenty of ways to secure a crypto-wallet: practicing proper user safety, taking advantage of certain security software, educating yourself on trading platforms, and so on and so forth.

Let’s go over 5 tips you can secure your crypto-wallet right now so you can make sure your crypto-wallet is as secure as your physical wallet.

1. Multi-Signature Address

The first thing you should do is use a wallet that allows for multi-signature addresses (MSA). If your current wallet allows for an MSA, use it. If yours doesn’t, I recommend looking into a new crypto-wallet.

A multi-signature address is, to be frank, the two-factor authentication of crypto-wallets. A multi-signature address requires there to be multiple sign-offs on a transaction before it can be officiated.

2. Stick to Reputable Wallets

According to an article from TechCrunch.com, tech startup ZenGo detected multiple vulnerabilities in multiple crypto-wallets. These vulnerabilities allow double-spending attacks, incorrect balance displays, and transactions being revoked.

Dozens of crypto-wallets exist, but only a few of them are truly safe.  Doing proper research and brushing up on which wallets promise user security is a good way to avoid any vulnerable wallets.

3. Use a VPN

The concept of cryptocurrency revolves around anonymity, a lack of ways to trace the currency back to the user. But just because your financial activity is anonymized doesn’t mean your presence is anonymized.

Fortunately, certain software allows you to anonymize your presence on the Internet. Simply downloading a VPN is enough to maintain anonymity while making transactions, especially if you often connect to public networks.

4. Keep Your Wallet Information Safe

In the tech industry, the acronym PEBCAK makes an appearance every so often. But what does it mean? PEBCAK, standing for “Problem Exists Between Chair And Keyboard”, is used when a tech issue—minor or major—is caused by user error.

A lot of tech issues can be traced back to the user, and cybersecurity is no different. Losing your crypto-wallet information, for instance, puts your wallet at great risk and is considered user error. Be sure to keep your wallet information locked up and away from others.

5. Use Trustworthy Trading Platforms

Trading platforms allow cryptocurrency to flourish, giving investors a place to spend, trade, and sell cryptocurrency. Unfortunately, not all of these trading platforms practice proper cybersecurity or even work!

Certain trading platforms exist solely to scam users, in fact. When looking for trading platforms, be sure to read up on scandals, controversies, and their security practices.

 

Amy Cavendish is a writer at Assignyourwriter from the UK. As an outspoken advocate for digital freedom, she is dedicated to empowering her readers to take control of their digital lives with her thought-leadership articles

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