You never know when someone might hack your wallet and steal your hard-earned Bitcoin. While advancements in technology improve the security of virtual wallets, they also equip criminals with more sophisticated tools for conducting illegal cyber activities such as hacking.
Savvy hackers also have unique strategies like scams to lure unsuspecting victims to their traps and avoid detection. That is why it is not usually straightforward for the authorities to catch them in the act or track them down after committing crimes.
The Bitcoin network has various countermeasures in place to protect users from the threat of hackers. Established crypto exchanges, too, have unique guidelines and tools, including enhanced bitcoin-loophole. live to safeguard their customer’s virtual assets. However, hackers can still find vulnerabilities on those platforms to exploit and steal digital assets. Thus, every Bitcoin user should also take precautions to protect their Bitcoin reserves from hackers. Here are ways to safeguard your Bitcoin from hackers and other cybercriminals.
Avoid Storing Your Bitcoin on Crypto Exchange Platforms
Hackers know that crypto exchanges are the most convenient online platforms where many businesses, investors, and individuals store their Bitcoin holdings. They are also aware that those platforms conduct huge volumes of Bitcoin transactions daily. As such, most hackers are often prowling crypto exchanges for weaknesses that they could exploit, putting users at more significant risks. It would be best if you only used crypto exchanges to store Bitcoin temporarily when buying or selling the tokens.
Use Two-Factor Authentication to Secure Your Wallet
Although having a simple password is convenient since it is hard to forget, it makes you highly vulnerable to hackers. A single-factor authentication might seem secure, but it is also much easier to crack if someone could get your personal information. On the contrary, two-factor authentication provides an extra layer of protection to your wallet, making it very difficult for hackers to compromise.
Store Your Bitcoin Holdings in a Cold Wallet
Virtual wallets are more vulnerable to hacks than cold wallets since they link to the internet. The internet is every hacker’s playground, meaning they could easily compromise your crypto wallet if it is on a web-based platform. The best way to avoiding such threats is by using a cold wallet. Various cold wallet options exist, including hard drives and USB disks, allowing you to store your Bitcoin holdings offline. That would significantly reduce the hackers’ chances of accessing your wallet and stealing the stored Bitcoin.
Create Separate Wallets for Different Transactions
As economists say, never keep all your eggs in one basket. Using one wallet for all your Bitcoin transactions is a risky move that could expose you to massive losses if someone hacks it. Creating separate wallets for different Bitcoin transactions would enable you to avoid losing all your funds when a hacking event occurs.
For example, if you are involved in Bitcoin trading and use crypto to pay for goods and services, it would be best to create separate wallets for each transaction. That would ensure you still have some Bitcoin left in case someone hacks one wallet. It is improbable that hackers would compromise both wallets at the same time since each has unique private keys.
Observe Cybersecurity Precautions
Sometimes, Bitcoin users make themselves vulnerable to hackers by failing to observe cybersecurity measures. Hackers usually embed malware into emails and ads, which gives them access to your personal information and devices whenever you click on them. On the other hand, you may also share your private keys with thirds parties unknowingly. So, try to stay away from suspicious emails and ads. It would also help if you never share your private keys with anyone since they could also be compromised.