Is Your Crypto Secure? What are Some Ways to Keep your Cryptocurrency Safe from Hackers.
Cryptocurrency has always been a hackers paradise. We all have heard about crypto hacks and scams that have occurred since this digital currency started to gain some traction. One of the most noteworthy hacks that ever happened back in 2014 caused one of the biggest crypto crashes ever. This happened when the exchange “”Mt. Gox” got hacked and millions of dollars worth of bitcoin was stolen.
So how safe is it to purchase crypto currency today? Well you can find some comfort in knowing that most exchanges have learned from the errors in the past and are luckily a lot more secure than previously. This unfortunately does not mean that it is guaranteed that a hack wont happen.
From time to time we hear about these hacks occurring where people unfortunately lose a lot of their crypto assets. Luckily this is a bit more far and in between as companies have become smarter in their cyber security.
One such incident that is currently under investigation is the phishing hack that occurred on Opensea. Opensea is currently the biggest and most popular NFT marketplace with millions of dollars of NFT up for sale. Opensea is by no means a small player in the crypto space, and even with this level of authority they too have now fallen prey to a hack and will need to investigate the legitimacy of this occurrence.
There is a saying in the software world, that is not if a platform is hackable, the question should rather be how long until it gets hacked. We live in a age where cyber attacks occur on a daily basis and this of course means that some of these attacks will focus on the crypto marketplace.
The thing is that, most of these hacks actually focus on crypto because of all the opportunities to hack peoples wallets, and if that fails to scam them to hand over their crypto assets. We looked at the potential for NFT scams in a previous post, that explains some of the scams we observed in the NFT sphere.
So now that we have established that there is certainly a risk to having your crypto wallet hacked, although less likely these days, we need to establish ways that you can keep your crypto assets save.
Most people make use of a virtual online wallet. The most popular online wallet is probably “Metamask”. This is a great wallet to use and one I use personally. It provides you with a key phrase when you create your wallet that is not stored afterwards. This means that you need to take care in securing this password. The most secure way is probably just to write it down and put it away somewhere safe. Just make sure you done loose it :)
No really. There have been cases where people have millions of dollars worth of bitcoin in their wallets, but cannot remember their passwords to access their funds. This is definitely not a place you want to find yourself in.
This password ensures some security, but does not mean that an online wallet cannot be hacked. There will always be ways to access these funds. A few weeks ago I read about a new malware specifically made to target Metamask wallets. So if you are unlucky enough to get infected with some of these malware, you might end up loosing all your crypto assets.
Now I don’t want to be a fearmonger, and as I have stated online wallets like Metamask are actually very secure and well trusted by the crypto community, so don’t let this put you off. I just want to raise awareness that anything is possible and that even how small the risk is, it is still there.
So most crypto enthusiasts that take security very seriously will tell you to use an offline wallet. What this means is that you store your cryptocurrency offline on a hardware device that is not accessible from the internet, encrypted and secure. This makes any hacking attempt basically zero. The device quality and correct use of the device will naturally predict its effectiveness.
This takes us to the next point, where quality matters. If you are looking to store your cryptocurrency on a hardware wallet for security, please don’t be cheap. It does not make sense to go the extra mile for security and then buy a sub-par product that might even have vulnerabilities.
So if you decide to go this route, please do some research before making your purchase. There are a lot of YouTube channels that can provide valuable insights into the security ratings of these wallets and how to use them securely. Take the time to do some research to get the hardware wallet that fits your needs and provides you with the level of security that you require.
What is your opinion on the current crypto security? Do you think exchanges have it down and the likelihood of a hack is quite low? Or would you rather opt to purchase a hardware wallet and keep your crypto offline?