5 tips to secure your crypto from getting hacked in 2023

With a rise in the popularity of cryptocurrencies all around the world, the scams associated with them have also increased manifold. From phishing emails to social engineering attempts, attackers are expanding to compromise the fragile and unsecured crypto wallets.

If you are someone who holds cryptocurrency, there are some good practices that you should know about to maintain a robust security wall around your holdings. Here are the 5 most important tips that you should keep in mind to secure your crypto from getting hacked in 2023. 

Choose a secure crypto wallet

Selecting a reputable and secure cryptocurrency wallet is the foundation of protecting your digital assets. There are hundreds of crypto wallets present in the market with different technology and specifications. 

From self-printing paper wallets to high-end wireless hardware crypto wallets, you will have to choose a wallet that fits your budget and secure your crypto effectively. 

Ledger is a world leader in hardware crypto wallets | Image credit: Ledger

While discussing the security implications of hot wallets Sudeep Saxena, Co-Founder, CoinGabbar, a crypto research firm, said, "For hot wallets, the most basic thing is to not share the keys (passwords) with anyone. To secure your crypto holdings the best way is to never hold your private keys in the same device through which you operate your transactions. The vulnerabilities in the device because of the file access had by so many applications play a major role in that."

"However, the cold wallets bring more security because it is off the grid except for the time it is directly connected to a device with a network," Sudeep added.  

You can also choose hardware wallets, such as Ledger or Trezor, that store your private keys in isolated offline storage, making them less vulnerable to online threats. However, a hardware wallet can range from Rs 5,000 to Rs 25,000, while you can get a trusted cold wallet app such as Trust Wallet or Metamask for free. 

Note: You cannot reset the password of your cold wallets. If you forget the key phrase of your crypto wallet, your wallet can be locked forever. 

Enable Two-Factor Authentication (2FA)

Enabling two-factor authentication (2FA) wherever possible significantly enhances your account's security. By requiring a secondary verification step beyond your password, like a unique code sent to your mobile device, 2FA prevents unauthorised access even if your password is compromised. 

Two-Factor Authentication can add layers to the security of your crypto wallet | Image credit: Unsplash

To add an extra layer of security to your crypto wallets, make sure to turn on 2-Factor Authentication. 

Beware of phishing attempts

Phishing attacks remain one of the most common tactics used by hackers to steal cryptocurrencies. In phishing attacks, hackers create fraudulent websites and emails that mimic legitimate platforms, tricking users into revealing their private keys or login credentials.

According to AAG, phishing is the most common method of cyber attack in the world | Image credit: Unsplash

To ensure the safety of your digital assets, always double-check the authenticity of URLs and emails before clicking on any links or providing sensitive information. You should always be cautious of unsolicited messages requesting your account details and make sure to not share your credentials with anyone.

Regularly update software and operating systems

Hackers often exploit vulnerabilities in outdated software and operating systems. To avoid that, regularly update your device's operating system, wallet applications, and antivirus software to protect against potential security breaches. 

Keeping your operating system updated can save you from easy-to-exploit vulnerabilities | Image credit: Unsplash

Software updates typically include patches that address known vulnerabilities, ensuring your devices are equipped with the latest security features.

Secure your private keys

Securing your crypto private keys is paramount to safeguarding your digital assets. Private keys are the cryptographic codes that grant access to your cryptocurrencies and control your transactions. 

Keeping a backup of your wallet's key phrase is mandatory for a wallet recovery | Image credit: Unsplash

Your private keys are the direct access to your cryptocurrencies and if someone else gets their hands on that, they will be able to control your assets. Thus, securing your private keys with effective methods is something every crypto holder should know about. 

You can increase the security of your private keys by using isolated offline storage to store them. Apart from that, creating multiple but secure backups of your key phrase and private key is very important. In case you lose access to your crypto wallet, a backup of your key phrase remains to be the only possible way for your crypto recovery.  You should also avoid keeping your private keys in cloud storage, analysts added. 

As cryptocurrencies gain more mainstream attention, the risk of hacking attempts becomes increasingly prevalent. Implementing these five essential tips will significantly enhance the security of your crypto investments in 2023 and beyond. 

By staying vigilant, choosing secure wallets, enabling 2FA, avoiding phishing scams, and utilising cold storage for significant holdings, you can safeguard your digital assets and enjoy peace of mind while navigating the exciting world of cryptocurrencies, analysts added.