How to Secure Your Crypto Wallet

Though cryptocurrency is a popular investment, investors must be diligent about protecting their money. If your crypto wallet gets hacked, you may be unable to seek legal recourse since crypto is unregulated. Learn how to protect crypto from hackers with our security tips below.

1. Use a cold wallet

A cold — or hardware — wallet is a secure way to store cryptocurrency offline. A cold wallet is a device that securely encrypts and stores your private key. Since a cold wallet is not connected to the internet, it cannot get hacked.

2. Have a secure internet connection

When making crypto transactions, use a secure, private internet connection. A virtual private network (VPN) offers extra security by changing your IP address and location to keep your browsing activity confidential. Do not trade crypto using a public Wi-Fi network.

3. Keep multiple wallets

You should put your crypto in a wallet since it’s more secure than keeping your currency on the trading platform. Storing your crypto across many wallets disperses your risk. If one private key gets stolen, your other private keys are still secure.

4. Use two-factor and multi-factor authentication

Two-factor authentication (2FA) and multi-factor authentication (MFA) protect your account by requiring another step besides your account password to log in. When setting up MFA, it’s better to get a push notification from an authenticator app rather than SMS. If you’re the victim of a SIM swap, the hacker would get the SMS text and could log in to your account.

5. Back up information

A backup wallet stores your wallet data in a safe place. If you accidentally delete something or lose your computer, your wallet will still be accessible. Back up your entire wallet regularly to save your most recent bitcoin addresses.

6. Encrypt your wallet

Encrypting your wallet involves putting a password in place before funds can be withdrawn. The password should be strong, containing several types of characters. Keep your password in a secure place — if you forget it, you can permanently lose access to your money.

7. Change your passwords regularly

Use a strong, complex password that does not contain any personal information. Each account should have a unique password, and you should change your passwords every six months. If you have multiple wallets, use separate passwords for each of them. You can also store your passwords in a password manager to keep track of them all.

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