How to Secure Your Crypto Wallet – Top 10 Ways

Trade on Reputable and Safe Exchanges

Knowing how to secure your crypto wallet is all well and good, but if you’re not trading on a reputable and safe exchange, you’re in trouble.

Newer, poorly managed crypto exchanges are enticing targets for criminals. Poor security systems, exploits, or mismanagement make them prime targets for criminals. That’s why choosing a good exchange is so important.

Coinbase, Gemini, and Kraken are all considered to be pretty safe high-volume crypto exchanges, with each employing its own cybersecurity teams tasked with taking an active role in fighting back against cybercrime.

While not insured in the same way as a bank, most of those listed exchanges will insure your funds up to a point in the event of some kind of breach.

The simple act of checking out a crypto exchange’s daily user traffic and security history, or even looking at any third-party security firms they might employ, can tell you an awful lot about the exchange you’re doing business with.

Store Your Crypto in Multiple Cold (Hardware) Wallets

Learning how to keep crypto safe starts with a good crypto wallet, and if we are talking about raw security, you can’t beat a cold hardware wallet.

Cold hardware wallets are small USB-like devices that you can use to store all kinds of cryptocurrencies offline, which makes them much more difficult for cybercriminals to target. Hardware wallets can come in all kinds of shapes and sizes, but the Ledger and Trezor series is widely considered to be some of the safest and easiest to use.

With a hardware wallet, you take funds off a crypto exchange and safely store them offline, on your device. The trick for you is going to be keeping the device itself safe.

According to one study, nearly 20% of all lost crypto is due to people damaging or losing their wallets. So hardware wallet users need to store their wallets in safe places like a safety deposit box or an element-resistant safe.

Use Secure Internet (Avoid Public Wifi)

If you want to know how to keep your crypto safe, you have to know how to keep your internet connection secure.

According to Norton Security, a whopping 600 million users around the world have fallen victim to cybercriminals because they were using public wifi or an insecure connection.

Often, public wifi systems are not encrypted, and that makes them vulnerable to malicious actors. When a system is open, it is much easier for criminals to steal private data or even load malware onto your device. 

For crypto users, this is particularly dangerous. Online wallet systems, private keys, passwords, and even crypto-jacking software are potential risks if you’re using an unsecured or public wifi system.

So avoiding public WiFi is a must.

But for your home network, consider checking your computer’s firewall safety measures, and its integrity, and always making sure that it updates automatically to make sure that it’s prepared for whatever new threats.

Use Two-factor Authentication and Multiple Passwords

Two-factor authentication, multi-factor authentication, and some good password management are some of the most important elements in learning how to protect your cryptocurrency.

2FA and MFA are systems that require you to authenticate the usage of all kinds of services with an additional password sent directly to your phone or your email address. These systems act as a great “stop-gap” against hackers and criminals because even if one system is compromised, the other will keep you secure.

There are lots of different 2FA and MFA systems available, and most crypto exchanges will highly encourage you to use them. Both Google Authenticator and Microsoft Authenticator will claim that these systems can reduce the chance of being hacked by up to 95%.

Another key ingredient for knowing how to keep a crypto wallet safe is good password management. It’s been reported that nearly 75% of US millennials use the same password across multiple different accounts. What’s worse is that the most popular password is “123456.”

Please don’t do this.

By using services like 1Password or Dashlane, you can manage your passwords easily and efficiently in a way that doesn’t leave you vulnerable to hackers.

Don’t Disclose Any Information on Your Wallet

As the saying goes, “loose lips sink ships,” and this is certainly true in the world of crypto. That means never sharing your password, private keys, or any other information with strangers.

It might seem obvious, but knowing how to protect your crypto wallet often means not telling anyone else about it.

Crypto scammers won’t know to target you if they don’t know you have cryptocurrency. So it’s an excellent idea not to brag about investments you’ve made, or how much bitcoin you have on social media.

Cybercriminals will trawl social media spaces for vulnerable or naive people that they can exploit, and when they do find somebody, they will use surprisingly elaborate and sophisticated schemes to separate a person from their money.

So while success is nice and maybe you feel like bragging a little, maybe keep it on the down low.

Stay Up to Date With the Latest Threats

Sometimes knowing how to protect your cryptocurrency is as simple as keeping an eye on news about the latest threats.

Crypto has one of the most bustling and thriving online communities found online, with hundreds if not thousands of news sources for all the comings and goings of the sector. If something is threatening people’s crypto wallet security, you can be sure that there are plenty of news outlets and social media accounts covering it.

So by keeping up-to-date on news sites like Cointelegraph, Coindesk, Decrypt, and Bankless, you can keep pretty good tabs on anything major impacting the space.

But you can go deeper to make sure you know what kind of threats you might be facing. Real Vision, DeFi Pulse, Chainalysis, and Ayzd can provide you with analytics, expert insight, and in-depth reports that can tell you about trends and emerging threats in cyber security.

Always Double-check the Recipient’s Wallet Address

One of the biggest threats when it comes to how to secure cryptocurrency is tragically one of the most simple. People send crypto to the wrong address.

Crypto transactions are pretty final, there isn’t a way to stop transactions or reverse them in the conventional sense. This can be a surprisingly big problem.

Coinbase, one of the biggest exchanges out there, “strongly suggests that you double check the address before sending or receiving crypto through the wallet.” Though, they nor anybody else can recommend much in terms of recourse if this worst happens.

Crypto that has been lost due to being sent to the wrong address is extremely difficult to recover and most likely will require the full support of the person you accidentally sent it to, that is, if you can find them at all.

So when you’re using a crypto wallet, either to send or receive crypto, it’s strongly recommended that you check, double-check, and even triple-check that you are using the right address and network.

Use Updated Antivirus Programs

Though it might seem a little obvious, it is nonetheless extremely important that you keep your online security and anti-virus software up-to-date. Simply keeping everything updated is easily one of the best ways to secure crypto.

Good quality cyber security is very dynamic and is always trying to keep ahead of the threats. Your computer or device will usually have some kind of antivirus software installed, but it may also be a good idea to consider investing in some third-party security software.

Often, these systems can offer an all-in-one package that allows you to have password managers, antivirus, VPN, and other features in one handy app.

But regardless of whether you go third-party or not, you must have your device’s security update system set to “automatically update.”

While it can be frustrating to wait for your device to update, that update could be the difference between a secure wallet and a vulnerable one.

Be Aware of Scams and Phishing Attempts

Criminals know that the most efficient way to steal your money is not by “hacking” your computer but by getting you to hand over your passwords.

The most efficient scam in crypto currency security is the simple “phishing” attempt. 

Phishing is the act of pretending to be a person of authority or trust, such as a bank, government, or service provider, and getting you to hand over your password or some other piece of sensitive information. While simple, this scam can be effective, as criminals will often use official-looking documentation or even direct you to fake websites to get you to hand over your information.

To make sure you never fall victim to this kind of scam, you have to make sure that you treat any contact from any provider with a healthy amount of skepticism. Banks, crypto platforms, authorities, or government bodies will rarely if ever, contact you looking for private information.

So check and double-check all communication. Use the contact number found on the official site to verify contact, and never just take somebody’s word for it.

Monitor Your Transactions Regularly

A really good, yet simple, way to make sure that everything is in order with your crypto funds is to keep an eye on transactions.

The simple act of monitoring your account can go a long way in helping to keep your crypto wallet safe. Suspicious transactions, even small ones, can be a good indicator that something is amiss, that perhaps some part of your security is compromised, or that somebody has access to something they shouldn’t.

So head over to the account provider and regularly take a look, and for added peace of mind, you might consider setting up an email or text notification every time a transaction takes place, just to make sure you are kept in the loop.

What if My Cryptocurrency Wallet Has Already Been Hacked?

If you want to know how to keep your crypto wallet safe when you notice something suspicious, contact your service provider or exchange immediately.

The sooner you let your provider know that something is going on, the sooner they can begin gathering information, prevent further loss of funds, and in some cases, even retrieve some of the lost funds.

Your next step will be to quickly create another wallet, preferably with some new kind of provider and with completely different passwords than the compromised wallet. Then, as soon as possible, move funds from the company’s wallet to the new one.

Conclusion

Learning how to keep a crypto wallet or cryptocurrency safe is about bringing various security elements together.

A top-notch crypto security system is very accessible to people, even if you are not the most technically savvy.

Making sure that your crypto is safe is about bringing together a good wallet, good antivirus software, some password management, multi-factor authentication, and some general scepticism online. All of these things, taken together, will protect you from most threats.

At CryptoWallet.com, we understand that unleashing your crypto’s full potential is not just about service, it’s about security, which is why we are committed to informing you about everything you need to know about keeping your funds secure.

FAQ

In this section, we are going to briefly cover some of the most frequently asked questions when it comes to crypto wallet security.

Should I Keep All My Crypto in a Wallet?

No. 

The security of cryptocurrency is much better if you keep them in lots of different wallets.

The old phrase “don’t keep all your eggs in one basket” is very applicable to crypto wallet security. By keeping your funds spread out in different wallets, you drastically reduce the chance of a disastrous financial security breach via the destruction or compromise of any one system.

Can Anyone See My Crypto Wallet?

Crypto wallets are not anonymous in the strictest sense of the word. They are, however, pseudonymous.

Crypto is usually a public ledger kept on a blockchain, and that means all of the comings and goings of that blockchain can be observed by anyone. This includes the balances and activities of individual wallets. However, for most people, it is extremely difficult to prove who is the owner and operator of that wallet.

Can FBI Freeze a Crypto Wallet?

The FBI and other authorities can request that exchanges put a halting order on certain wallets. This means that platforms will prevent, stall, or freeze certain actions from that wallet. 

Generally speaking, this sort of activity is more reserved for organized crime or terrorist activities. However, the FBI can seize a crypto wallet as part of asset forfeiture in some cases.

How Do Hackers Get Your Crypto Wallet?

The best way to secure crypto is to have a good wallet, but how do hackers get your crypto wallet?

Ideally, hackers simply won’t be able to access your wallet or funds in any way because of the steps we’ve outlined above. But speaking generally, criminals will only really get access to your funds by compromising the security of an exchange or by phishing your password from you.

But by simply keeping your funds offline in a cold wallet and never giving out your password, you should be well protected from such an event.

Which Crypto Cannot Be Hacked?

The security of cryptocurrency is usually very high, so it is extremely unlikely that a crypto itself will be hacked. Though there are still some steps you can take when learning how to secure a crypto wallet that we’ve covered throughout this article.

Most crypto is extremely resilient to being hacked. Bitcoin, for example, is constantly verifying its public ledger via its blockchain amongst thousands of different node operators, which makes the chance of hacking the blockchain itself extremely unlikely.

What is the Safest Wallet App?

Apple Pay, Cash APP, Google Play, and Revolt are all considered to be highly secure cash apps for your device.

Generally speaking, big-name cash apps are pretty secure from most external hacks, your main concern will be scams or phishing attempts.

Which Crypto Wallet is the Most Secure?

If you want to know how to protect cryptocurrency or how to protect a crypto wallet, you might be wondering which is the most secure.

There are lots of contenders for this top position. But for a quick breakdown, ZenGo, Binance, Prime XBT, and Coinbase Wallet are all considered top-notch in terms of hot software wallet systems.

But the safest way to store crypto will invariably be an offline, cold hardware wallets option like Ledger or Trezor.