Since 2009 when Bitcoin was introduced to the world, cryptocurrencies have gained value, and today their market value exceeds $ 300 billion, and experts predict that we will continue to see an increase in the value of cryptocurrencies.
While this is welcome news for cryptocurrency traders, hackers looking to grab a piece of the pie disrupted the market, stealing user logins and their money in 2019, as investors lost $ 292,665,886 million in cryptocurrencies.
Security breaches are on the rise, feeding the need for cryptocurrency traders to take extra precautions when using exchanges and storing their cryptocurrencies. Before we take a look at the security practices you can use to keep your digital wallet safe and secure, let's talk about some of the security risks.
What are the security risks?
Hackers are taking advantage of the COVID-19 pandemic to exploit individuals, as cybersecurity risks have risen in the early stages of the pandemic, with malicious attempts becoming more complex. The crypto market has not escaped these attacks, and here are three security risks that cryptocurrency traders face:
Fraudsters pretending to be cryptocurrency traders or exchanges claiming high returns on cryptocurrencies have deceived unsuspecting victims.
Fraudsters use social media and emails to target users, and Bitcoin is the dominant cryptocurrency in the market. It was also the digital currency most exploited by fraudsters.
Emails claiming to be from legitimate sources such as charities and government agencies are on the increase during the pandemic. By using COVID-19 as a cover, phishing encourages these people to click on links to donate or purchase PPE. These links take people to malicious sites where hackers can be exposed to personal information, including private keys for cryptocurrency exchange.
With ransomware, the malware encrypts your system and files, then demands a ransom for the files to be returned or decrypted. Some ransomware requires payment in cryptocurrency.
5 ways to protect your digital wallet:
Despite these security risks, cryptocurrency wallets remain one of the best options for securing your cryptocurrency, so how do you protect your wallet from malicious activity? Here are five methods:
Use a reliable password manager:
It can be difficult to remember your private key code, which gives you access to your encrypted wallet, this is a security tactic, so be quiet by using a reliable password manager to store and retrieve your code, and this means that you will not have to worry about forgetting your private keys and locking your wallet.
Download a VPN:
The VPN application is another way to enhance your security, as a VPN can encrypt your Internet connection, and prevent hackers from monitoring cryptocurrency exchanges, as many cryptocurrency traders use this tool to ensure their anonymity online.
Use two wallets:
Consider keeping a small amount of cryptocurrency in your online wallet for trading purposes and keeping the rest in an offline wallet, that way, if the malware tries to intercept the password for your online wallet, the rest of your money will be safely and stored out of hackers' reach.
Use two-factor authentication:
Instead of using just one password to access your encrypted wallet, two-factor authentication enhances your security by requesting an additional code, as the code can be sent to your phone as a text or email and it is only valid for a few minutes.
Update device software and antivirus software:
One of the best ways to harden your device and reduce vulnerabilities is by updating software and antivirus application regularly, these regular updates remove the vulnerabilities.