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10 Ways to Keep Your Cryptocurrency Safe

Cryptocurrency account hacking is on the rise.

The rise in popularity and prices in Bitcoin and Ethereum means that virtual currencies are often targeted by hackers who want to take advantage of these valuable assets. “The economics of hacking shows that attackers will continue to gravitate towards digital currencies as their value increases and they become more common in our daily lives,” says Jack Menino, CEO of NVisium. O, Application Security Providers in Falls Church, Virginia.

Take a hybrid approach to digital wallet security.

Online wallets have grown in popularity and attract the attention of hackers. Offline or physical wallets should be used to store the majority of a consumer’s cryptocurrency, while only keeping a small amount of currency in the online wallet, says Terence Jackson, chief information security officer at Thycotic, a Washington D.C.- based provider of privileged access management solutions.

Two strong passwords are key.

Never reuse passwords across your accounts, especially since cryptocurrency services areĀ prime targetsĀ for hackers. Assume that all of them will inevitably have a data breach, says Kevin Dunne, president of Greenlight, a Flemington, New Jersey-based provider of integrated risk management solutions.

Work with reputable cryptocurrency wallets, exchanges, brokerages and mobile apps.

Before deciding which platform to use, investors should carefully research the security features of each platform to understand how their data will be protected. Austin Merritt, a cybersecurity intelligence analyst at San Francisco Digital Shadows, says the best security practices should be included to rely on these entities, such as the need for multi-factor authentication, SSL / TLS encryption and air-gapped devices. Uses that are kept offline when storing cryptocurrency. ” Provider based on digital risk protection solutions. The use of multiple cryptocurrency platforms can be secure as long as the owners use different, complex passwords for each platform.

Protect yourself from mobile phishing.

Many people with a cryptocurrency wallet use a mobile app to manage it. As these commodities soar in price, malicious hackers are motivated to target investors with mobile phishing campaigns to steal your login credentials, says Hank Schless, senior manager of security solutions at Lookout, a San Francisco-based provider of mobile security solutions

Be aware how your wallet is used in transactions.

Dirk Schrader, global vice president of NewNet Technologies, a Naples-based cybersecurity and compliance software provider in Florida, says applying the “principles of cyber-flexibility” to your wallet. “Any crypto wallet is a piece of data and code, but a piece that has good value for you and others.

Understand the different methods and processes to protect your digital currency.

Investments in cryptocurrency continue to rise in popularity with people who do not have a technical background but are seeking to diversify their portfolio. None of the digital assets are managed by an authoritative organization or central bank, so the responsibility to protect your money falls, “almost completely on the user,” says Brandon Hoffman, chief information security officer at Netenrich, a San Jose, California-based provider of IT, cloud and cybersecurity operations and services.

Avoid sharing the secret key.

The secret key is used to validate that the person sending or receiving the digital coins is the owner of the wallet being used, Hoffman says. This secret or private key should never be shared. “The safest way to store your private key is by using cold storage,” he says. “Cold storage essentially means printing out your key and removing all digital traces of it.”

Skip using wallets hosted by providers.

Other ways to store bitcoins are wallets hosted on your laptop or desktop and wallets hosted by suppliers. Hoffman says hosting wallets from providers are “the worst choice because you are allowing them to store your private key on their servers which is beyond your control,” Hoffman says.

Cold wallets have their drawbacks for active traders.

A cold wallet is entirely offline and requires either writing down the private address on a piece of paper that only the owner has access to or purchasing a physical device that securely stores cryptocurrency funds, says Thomas Beek, senior cybersecurity specialist at Digital Shadows.

Hot wallets are more convenient for traders, but losses could be greater.

Retail investors can use hot wallets, a storage option that is connected to the internet at all times to facilitate easier access and the ability to trade and buy other cryptocurrencies more conveniently, such as Coinbase and PayPal, Beek says. The trade-off is security and entrusting the platform with the security of both your public and private address, which “historically has resulted in the loss of significant funds following the successful breach of an exchange,” he says.

 

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