Cryptocurrency is on the rise again and, as a result, more and more investors are looking to buy into crypto for the first time, or are perhaps looking to increase their stakes. Whilst investors may see this as a great opportunity, as do hackers and scammers. There are many things to consider when it comes to investing and trading in crypto, such as keeping your funds and wallet secure.
In August 2021, the cryptocurrency exchange Liquid was hacked and lost over $97 million in crypto, then in January 2022 a further $30 million in Ethereum and Bitcoin was stolen from Crypto.com. These are just the big-name scams and hacks – in reality, there are so many more which occur each day to the average trader. This is why you should consider improving your digital security in order to protect yourself and your wallets. Let’s take a look at 3 tips for protecting yourself when investing in crypto.
Two Factor Authentication
When you first buy or invest in cryptocurrency, you will typically be using an exchange account. If a hacker or scammer gains access to the account, they will then be able to withdraw your crypto coins into a wallet which is under their own control. This is one of the most popular cryptocurrency scams that traders encounter, but it is also one which can be easily resolved. One of the easiest things you can do to stop this is to make sure that you purchase your cryptocurrency safely, but also turn on two-factor authentication (2FA) when making withdrawals in the exchange app.
2FA requires a code to be input from your phone every time you want to make a crypto withdrawal. This can be a hassle if your phone battery is low or your phone is elsewhere, but it is something that could save you from losing your crypto funds. If you don’t enable 2FA, then you are then relying solely on your account remaining secure with just your email and password. If 2FA is enabled, then an attacker can’t withdraw your crypto funds from an exchange without first having to gain access to your mobile phone.
Use Different Passwords For Your Wallet
When you are setting up your crypto wallet, you may be tempted to use the same password to access your account. If a hacker gains access to your details from another website where you use the same password, then this makes it much easier for them to gain access to your crypto wallet, too. Your crypto wallet password is perhaps one of the most important passwords you will have, meaning you should make it unique and difficult to crack. Even if you use a strong password, then criminals carrying out NFT scams, for example, can still use things such as key-logging malware to discover your password and use this to access your wallet.
Avoid Public Wi-Fi
When you’re out and about, you will sometimes find that you need to connect to public Wi-Fi connections. But, if you are regularly trading in crypto and making transactions, you will want to avoid using these connections. When you use public Wi-Fi connections, others using nearby can, if they want to, intercept your traffic. With the information they will then receive, they can find out if you’re visiting crypto sites and, in some cases, may be able to access your transactions. This won’t necessarily mean that they can steal your cryptocurrency, but they could start to pay a lot closer attention if they find that you are regularly making high-value transactions.
