“Victims of $200 mn BitMart crypto hack still waiting for refunds”
“Crypto scammers took a record $14 billion in 2021”
“LCX loses $6.8M in a hot wallet compromise over Ethereum blockchain”
“NFT Gaming Project Hack Sees $150K Of Crypto Stolen”
These are the latest headlines when we talk about scams in the crypto world. These cases involve a huge amount of money and may have cost someone their entire life. If we dig deeper, we can connect the dots and the technicality to arrive at a solution that can help to prevent hackers from intruding on your crypto wallet.
Private keys or a string of alphanumerics have the capability to unlock your cryptocurrency wallet and move your funds. The only way to secure your funds is to never disclose the private key to anyone.
In order to understand the mechanism, let us understand the available options:
Non-Custodial and Custodial Wallet
As evident by its name, a non-custodial wallet or a self-custody wallet is in your absolute control. You are in undeniable control of your private keys to your crypto wallets. Since this is a self-custody wallet, you are solely responsible to remember, retain and not disclose the pass to the private key.
It is fully your accountability to ensure that they remain safe. And, if you forget your private keys, which is often common, you are denied any access to your wallet. And no exceptions to the above have been entertained.
Similar to cold wallets, it is your responsibility to ascertain the hardware you would like to place your private key in. Many of the hardware wallets look similar to a USB.
There is another classification of hot wallets, which means retaining your key over the internet. That may actually make you lose your sleep to consistent stress and anxiety. They are riskier as compared to cold wallets, provided their storage location is accessible and exposed.
Usually, bitcoin wallets require one private key, but in the case of multi-sig, multiple keys are needed. But, the crucial point is to back your private key and never let it out to the public. You can lose all your crypto in a moment from a mistake.
When we talk about a custodial wallet, a third party like a cryptocurrency exchange is involved which is responsible to maintain your wallet on your behalf. The exchange shall hold your private keys in your regards.
Generally, people like to take support of a custodial wallet, contrasting to the saying, “not your keys, not your bitcoin”.
The fact of the matter is, a custodial wallet is safer and accountable. Exchanges invest heavily in security and that is why they are a little on the safer edge. It also saves people from persistent stress and worries about forgetting or disclosing their private keys.
You must spend some time researching and choosing the best currency exchange before instructing them on your behalf. Give their regulatory framework a read and know about their operations. You would also like to scroll through some news in order to find dirt on the cryptocurrency exchange.
How to protect your crypto wallet?
Given the above factors, your crypto wallet and your crypto token need protection and safety. The cryptocurrency was designed to authenticate new dimensions of the security of transactions. Platforms like ModiCoin ascertain the best standards of efficiency, security, and flexibility. It ensures that your transactions are protected end-to-end. Despite this, you also need to ensure that your wallet is shielded from the unethical practices of cybercriminals.
Wherever you decide to store your crypto funds, you must play safe. Immaterial of the storage space, hackers can be a threat always. Hackers use tricks like sim swap where they attain your login information. To completely establish and root the robbery, they would make a call to your phone service providers and ask them to switch your number with theirs.
This is why we do not recommend two-factor authentication via SMS.
Changing Passwords and Wallets:
Moving your investments is what savvy investors do a lot. They never store their funds in one space for a long time. This reduces the risk of theft and hacking significantly. You may also consider changing your passwords regularly so that your hackers lose track. Parallel to fooling a trespasser or a suspicious follower, to save your crypto funds, you may want to channelize your efforts towards this arena.
Maintaining multiple wallets:
“Do not put all your eggs in one basket” and by that, we mean and recommend maintaining multiple wallets to befool the hacker. And all your wallets would not be hacked at once which saves you from the probability of losing every penny in the blink of an eye.
Secure your personal data:
An informed, careful and rational investor would also like to secure his personal data with anti-virus and a strong firewall. Improving your device’s security is one step towards privacy. This gives us an edge over the hackers because they would be unable to steal our personal details which include the login information. Any data stored on your device shall be safe and sound.
Do not get phished:
Be aware of fraudulent emails and malicious ads. They are egregious and can harm your firewall, allowing hackers into your device. Such access will enable cybercriminals to acquire your personal details and even the private key if it has been stored on the same device. To sum up, losing your device’s privacy or your private keys exemplifies a threat in your direction. In such a case, you may consider changing your passcodes or your wallet immediately. You can also inform the specific exchange that maintains your funds.
It is advised to look out for reputed and esteemed cryptocurrencies like ModiCoin. ModiCoin is well known for its stable and secure environment. It also harbors a blend of remarkable features built to secure the stakeholders. Not only does it ensure excellent efficiency and flexibility, but ModiCoin promises to revolutionize the prevalent payment integration system in the economy.