Site search

Every person who is planning to start a cryptocurrency wallet should know about these rules

How to protect a cryptocurrency wallet from hacking?

01.03.2021

Cryptocurrencies are becoming more and more popular every day, attracting blockchain technology supporters with new developments and a variety of digital coins. Therefore, if users decide to buy coins, they are fully responsible for their safety. If they lose the keys, they lose access to the money. The funds will remain in the blockchain forever, they will be visible, but it is impossible to withdraw or spend the coins. Hackers are another danger. To keep your funds safe, it's worth thinking about ways to protect them.

The barrier separating your savings and hackers is the degree of protection you have set. Therefore, it is better to take care of the security of your wallet in advance and take a number of measures that will provide a high degree of protection against hacking. We will talk about three levels that help to reduce risks to zero.

Basic rules of the first level

. Although they will not give one hundred percent guarantees, not following them is like leaving the door of the apartment open. The first level consists of:

  • Providing a secure seed phrase storage of twelve words (or 24 words). The main key to the storage is the seed phrase. If an intruder knows it, consider that they are already at their mercy in your wallet. Make sure that the code words are not written down in a visible place. Hide them away from prying eyes.
  • Handling your private keys with care. Each address is assigned its own private key. And if a new address is generated for each new incoming payment, a new private key is also created for it, so the total number of private keys grows.
  • Setting a complex password. Make it up so that it doesn't look like a word attached to something as much as possible. Do not use passwords for social networks, games, or e-mail. It's a good idea to make up a password that consists of 16 characters, including letters and numbers in a chaotic order.
  • Using a licensed operating system and other applications. Make sure to upgrade them in time for safe PC use.
  • Ignoring suspicious resources. Antivirus will tell you about it if you find yourself on a suspicious site. And never download files from a resource you don't trust. They may infect your computer with viruses, which in the long run will help intruders to hack your wallet.
  • Silence. The easiest thing you can do is not brag about your savings. It's best not to do this, either in conversation or by posting a screen video.

By following these steps, you can halfway secure your virtual assets.

защита1.jpg

The rules of the second level

At this stage, you can already be relatively safe with your funds. But you should not stop, because there is never enough protection. At the second level,l it is desirable to:

  • Use a hardware wallet. This is the easiest security choice. No computer connected to the Internet can be 100% secure. That's why experts advise keeping your savings in hardware wallets, especially if you have fairly large amounts.
  • Turn on the two-factor authentication. It is most often carried out with the help of a phone. This method is the most secure in contrast to SMS or email. To do this, you need to install an application on your smartphone that generates a series of numbers.
  • Use a password manager. To avoid confusion when making up passwords for accounts, it's best to use an app that does it for you.
  • Use a VPN and a firewall in your work. It is mandatory to install a firewall on the PC, which intercepts malicious access from the network. And with a VPN, you can hide your activities from third parties.
  • Use antivirus software. They will add another layer of protection, especially if you update them regularly. However, relying on antivirus software alone is not advisable.
  • Check if the seed phrase is stored securely. You can make several copies and keep one in your apartment and the other in a safe place. In case of emergencies, you will be able to recover the lost code sheet.

Now you can be sure that your wallet is about 80% protected. To increase the level, you should go to the third step.

защита 2.jpg

The rules of the third level

With these rules, you can maximize the security of your savings and leave intruders stranded. Now is the time to take serious action:

  • Provide a complex password. Create a 64-character cipher with any 10 numbers and 10 service characters (_!$%^&[]{}<>). In theory, it would take more than one hundred years to crack such a password by a brute force attack.
  • Memorize the last part of the password. You can take the last 4 numbers of a significant password, remember them, and then remove that part from your password manager. It is better to do this only if you are sure of your memory.
  • Encrypt the hard drive. This will be useful in case of loss or theft. This way your information will be safe.
  • Install anti-phishing software. They can help recognize a potentially dangerous site by displaying a warning on your monitor. For example, PhishFort.
  • Check the safety of the seed phrase once again. It is really important, because, with it, it is possible to restore the lost access to the wallet. Provide it complete safety, for example, take it to a safe deposit box or put it in a safe at home. There are also special devices like Cryptosteel that allow you to store your seed phrase in a strong fireproof case. They would be a great addition to hardware wallets.

защита3.jpg

Conclusion

For your coins to be completely safe, you should take your wallet and computer security seriously. Keep all passwords, private keys, and, most importantly, the seed phrase secure. Don't be lazy to update your anti-virus software regularly, and also take care of your network security (firewall). If you make a little effort that helps increase your security, it will be much harder for hackers to reach your funds.