The use of crypto has exploded in the last few years - an increase from 5 million in 2016. Since then, investors from all walks of life have shown great interest in acquiring crypto assets, including cryptocurrency (Bitcoin, Litecoin, Ethereum, Dogecoin, Ripple, Monero), utility tokens, security tokens, and non-fungible tokens (NFTs).

This insane interest in crypto has made cyber attackers and hackers even more creative and persistent in their attempts to steal assets. Keeping the rise in crypto hacks and scams in focus, it is essential to have strategies and tools in place to protect your digital assets.

Best Practices

Activate Two-Factor Authentication (2FA)

One way to thwart the risk of your assets getting hacked is to use two-way authentication or 2FA. It works as a low-cost and easy-to-implement technology that adds an additional layer of security when handling cryptocurrencies and other assets.

Simply after downloading an app to your device and enabling two-factor authentication for services or applications, enter the password and then a six-digit code every time you log in. Look at all relevant services, applications, and wallets in use and activate 2FA.

Choose Multiple Secure Wallets

While it is true that there are safe exchanges, breaches are common to happen. So, the smartest option is to store your crypto in multiple wallets, preferably hot or cold wallets.

Hot wallets are online software-based crypto wallets that store crypto assets. Though they offer some level of security, cold wallets excel in almost all ways.

Cold wallets are not accessible via the internet and keep your assets offline. Generally, a cold wallet is a physical device, ranging from a USB drive to some hardware with custom security features.

Ideally, you should keep most of your assets across cold wallets and only some in an online wallet.

Use Secure Internet

Try to avoid public Wi-Fi networks and stay away from suspicious websites whenever you log into your crypto accounts. Make sure you set up a basic security infrastructure for crypto trading.

Check if your internet is secure by testing your firewall for any vulnerabilities. Also, make sure your anti-malware software is updated and set up properly.

Set a strong password for your wireless router, enable network encryption, disable network name broadcasting, and keep your router software up-to-date.

To boost security, consider a proxy server. By using a proxy server, your IP address is hidden, providing a layer of anonymity and making it more challenging for others to track your online behavior.

Protect Your Wallet With Strong Passwords

Your wallet password is the most important password you have, so try to make it solid and unique. Also, never repeat a password that you have used for another account.

This is because if hackers breach a site you use, they may be able to acquire your password hash and pass it through cracking software. Many people also save their site passwords in plaintext inside their web browsers. In case your device gets infected with malware, the attacker may gain access to all your site passwords.

And even if you use a strong password, hackers can still use key-logging malware to get a record of your keystrokes when you enter your password or extract your unencrypted vault data from your RAM. It is a good practice to keep changing the password after a few months, apart from activating two-way verification.

Be Alert of Scams

Crypto scams are common within the industry, ranging from pump-and-dump schemes and fake job listings to phishing and impersonation scams. Hackers try to tempt people with promises of free crypto or to receive tokens, and after getting access to your wallet, they take any crypto asset you own.

To avoid scams, never click on random links you receive in an email or a message. Also, never share sensitive information (passwords or wallet recovery phrases) or let a shady site gain access to your wallet’s possessions.

Always watch out for threats and deal exclusively with well-known crypto entities. Run anti-virus programs on devices against viruses or phishing attacks to ensure the safety of your assets.

Different anti-virus software programs are available, having different features for a range of platforms and devices.

Do Not Install Software From Unverified Sources.

Always make sure to download software from official websites. Infected files are one of the most common ways to get malware on your device, and it is particularly prevalent on pirated versions of apps.

Check Addresses When Transferring Funds.

When transferring funds on the blockchain, you should always double-check that the addresses match as blockchain transactions are irreversible.

If your device has been infected with malware, it is possible that your clipboard may be compromised when copying and pasting wallet addresses. Learn more about this here.

Best Tools

In addition to some best practices, investors in the crypto industry can also use software programs to keep their crypto assets secure. Here is our list of some recommended tools:

Crypto Wallets

Often using a single crypto wallet might not be your best option, and picking one will often involve some compromises. You can check our article on crypto wallets here.

Our suggestion is to utilize a reputable custodial wallet for your trading and day-to-day transactions needs due to the multi-platform and multi coin support. For long term cold storage of funds, use a hardware wallet or metal plate where you can write down your private keys.

A combination of both custodial and non-custodial wallets will ensure that you can still easily use crypto on a daily basis, but that you are never at risk of losing the majority of your portfolio if anything happens with your custodial wallets.

NordVPN

A part of TIME’s Best Inventions of 2022 list, NordVPN is among the most popular brands in the VPN industry. It encrypts your traffic and virtually changes your location to make you more anonymous and allow safe online activities.

It offers multiple simultaneous connections through its network, a dedicated IP option, split tunneling, a kill switch, AES-256 encryption, and excellent VPN protocols. Other interesting features include Meshnet and threat protection.

Bitwarden

Bitwarden is an open-source password manager with a user-friendly interface for individuals and businesses. End-to-end encryption, cross-platform accessibility, and flexible integrations are some of the many reasons Bitwarden is among the best tools to secure accounts and assets.

It enables users to store as many passwords as they want without any restrictions on the number of kinds of passwords to be stored. The app also creates secure passwords, which users can safely share with robust encryption.

Bitdefender

Bitdefender is an all-inclusive security suite that works best for those who want prevention-based security. It uses an extensive malware database with artificial intelligence and machine learning to detect and protect against malware.

This program runs daily scans without slowing down the device and doesn’t interfere with other applications. Some of its key features include a firewall, multi-layered ransomware protection, VPN protection for connections, and a password manager.

Conclusion

The crypto industry continues to become bigger than before since more and more people are joining the network, mining their blocks of transactions and trading assets. But this rise in activity has also led to increased attempts by bad actors trying to take advantage of beginners.

If you follow the above-mentioned best practices and use some suggested tools, you can certainly reduce the risk to crypto assets to a minimum.