Digital Media

How To Protect Your Cryptocurrency Wallet

Photo by Mattew Henry via Unsplash

In this age where hackers are trying to scheme people off their earnings, special attention need to be paid in protecting one’s virtual assets. The threats are always new, innovative and imminent, and they come from individuals and regions of the world you would least expect.

The old tricks of phishing, spamming, and trojan viruses are still out there too for the unsuspecting users. One such trojan virus scheme stole $150,000 from a single individual by substituting the hackers digital coins address for the intended and original address. The simplicity of the hack was that it exploited the copy and paste feature that, everyone on the web uses. The victim installed a web clipping software not knowing that this software discretely sends the information of his copied password to a remote server. Even by not doing anything wrong, one may still fall victim.

Many cryptocurrency organisations have gone bankrupt due to bugs, (security flaws), discovered by third parties, which were perfectly exploited before the team could plug the leaking hole. In one instance, a hacker, or it could be a group of people, as their identity is unknown, used the same method to hack Bitstamp and two years later Tether.

Thus, the first way to prevent losing out on your assets is to keep your software updated. The moment a security fix is released, ensure you download. This is to prevent yourself from being a soft and open target. Norman Guadagno, Chief Evangelist of Data Protection at Carbonite noted that many hacks are targeted at old and outdated machines.

In addition, ensure that you use different passwords for the websites and software you access. It may be good to use a password manager – like Google Smart Lock – for this purpose. A recent attack on a children friendly website, built by VTech, led to their parent’s bank details being extracted. These passwords may have been sold in the dark web. Imagine using the password you entered for that account on your Litecoin wallet, things could go sour pretty fast.

Ensure that, when you are disposing or selling any of your devices, you properly delete all personal data you may have on it. Imagine having a Litecoin wallet on your Iphone8 and you wish to get iPhone X, you would want to delete all information incriminating or not. If you do not do this, you may have invariably offered dracula the key to your blood bank.

Also, if you trade a lot, you should consider storing some of your cryptocurrency offline; cold storage. Using Litecoin, (LTC), as example, this method has two visible advantages, in the event of being attacked. First, only your LTC wallet will be stolen and it forces you to be prudent in taking measures. It is helpful if you are computer savvy, you can clone this github repository for and run it on your local server. The project is open source, thus, you would not be breaking any license law. This is like saving your money in a vault and keeping just what you need in a wallet. No one will know such vault exists.