How to secure crypto wallets

Security is one of the main (if not the main) things, which users seek, coming into blockchain, especially when assets and data are involved. Every owner is looking for a secure wallet. That’s why some of them make the choice in favor of ‘cold wallets’ (a physical device with no direct connection to the network, however, being something like a memory stick, vulnerable to being lost or damaged). Even if the wallet has already got hacked and the clock cannot be put back, it is possible to secure oneself from future dangers.

How to secure a wallet?

Someone owning a wallet (no matter cold or hot) needs it and the currency in it to be as secure as possible. There are several effective ways to up the level of security without using rare professional tools.

• Password strategies. It is a good practice to change the password as often as possible (not rarer than every half a year). The conditions in the web nowadays are such that it is possible to breach almost any password, however strong it may be. It goes without saying that open data (such as date of birth, physical address, relatives’ and pets’ names and the like) are not a good choice for any type of password, especially for a crypto wallet. Another advice is to avoid parts of passwords which have been used already elsewhere (it will simplify the password mining for a hacker). Random passwords are a very good solution, however, they might be quite hard to remember. Thus, it is not very secure to store them in browsers, use a special digital storage (password manager) instead, where one can not just create a strong password, but also keep it safe and then input the details during the login session when needed.
• MFA (Multi-factor authentication). One of the best security measures ever invented. It is a stronghold with several consecutive ‘gates’, each of them needs its ‘key’ to open, and it is impossible to get access otherwise. Passwords are just one stage, but there are also security tokens, SMS-code proof, biometrics, etc. There are several types of WFA depending on the number of layers (2-factor, multi-factor, SMS-code). The more layers the better (for example, a villain can get access to a SIM card or a gadget and use the notification sent to them. Such ‘SIM swaps’ have become very frequent lately, if the gadget is lost, it’s better to block the sim). Having a number of layers helps not to lose control of the wallet. Even if a scammer or a criminal takes over a SIM, without password and other type of authentication (such as biometrics) they would fail to take the wallet over.
• Beware of scams. Phishing is one of the most frequent types of attacks performed on crypto wallets, as it depends on the human factor and does not need the attacker to spend time on password mining. Scammers send malware via email, links to fake websites, etc. trying to make a wallet owner disclose sensitive information (personal data or the private key). The first advice is to keep out of suspicious sites and never enter an exchange unless being sure that the website is correct. Also beware of strange letters (especially random, with mistakes and from strangers, which contain suspicious information) and never disclose any sensitive data, however persuasive and trustworthy the stranger seems. Double check the details of a payment before sending them (especially the address. One letter, changed in it, might be overlooked, but this address is fake).
• Storing eggs in separate baskets. Cryptocurrency trading had better be separated from personal accounts (social media, mail, etc.) and work accounts and devices. A special email address should be dedicated only to the wallet, instead of using existing ones, otherwise it can open a back door to a hacker, who surfs through the mailboxes. Public computers and workstations are not a good place to access the wallet. Almost any stranger can have access to your sensitive data there, such ‘invitation’ may lure even an honest person (an IT maintenance specialist, for instance). The best choice is a dedicated smartphone or a pad, but if it is ‘too much’, a personal phone or a laptop nobody but the owner has access to is also a reasonably safe choice. Moreover, if an owner has a number of wallets, each of them needs a separate email.
• Staying private. Stay as private as possible. Public Wi-Fi is a bad choice to enter cryptocurrency exchanges. Even more, using VPN services is highly advisable, as it creates encrypted tunnels and helps to avoid eavesdropping or tracking personal activities. Also the less information can help to track the wallet owner’s identity – the better. Personal information may help the hacker or scammer to get access to the key and take hold of the wallet. Not only private keys should be kept secret (which is a must), but other types of information as well. It is not a good idea to boast about gains and rewards in social networks or at corporate parties in diners, attracting hungry criminals. Trading activity, information about transactions or exchanges should be secured as well.
• Multiplying wallets. There is a practice to put each coin in their own wallet. If an owner has several coins or tokens, each one should be kept separately. Even in the case of one currency wallet there might be a wallet for daily transactions, with the rest of your coins stored in another. In this case, even if one wallet is hacked, the majority of your coins and tokens stay safe.
• Updating strategies. Frequent updating of the software will help get important patches and keep safe from discovered vulnerabilities. The updates may be set up automatically or manually, but anti-malware and antivirus software updating is also especially important. Also it is important to stay up-to-date with the latest crypto news (including recent hacks, scams and new prevention strategies) on special websites and from specialists’ reviews to get to know the enemy and build the defense in time. 

Conclusion

Nothing can be called absolutely safe by itself. There are always those who are ready to test the security for the sake of taking over someone’s wallet. However, taking several simple and reasonable steps might help to make one’s coins and tokens more secure and keep out possible hackers and scammers.