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October 14, 2022

How To Ensure A Secure Crypto Wallet

How To Ensure A Secure Crypto Wallet

Cryptocurrency and the decentralized finance arena have been marred by hackers and scammers. As this forward-thinking, tech-driven space is packed with emerging technologies and has little in the way of regulation, it’s no surprise that many malicious cyber-criminals use it as their playground.

However, by utilizing a secure crypto wallet, such as Escrypto, and implementing our crypto wallet security tips, you’re sure to avoid hacks, scams, and potentially costly mistakes.

By the end of this article, you’ll be a master of cryptocurrency wallet security, and you’ll understand some of the best practices and why you need to implement them.

Let’s get to it.

How To Secure Your Crypto Wallet

Secure Your Mobile & PC

Buying, selling, swapping, and staking cryptocurrency are all done online, usually via a mobile device or PC. So, our first tip is to secure your devices as effectively as you can. Secure the device your crypto wallet is stored on, making it even more difficult for anyone else to access. Essentially, you should view this as your first security barrier.

Ways you can secure your device:

  • Protect your device with a password, pin code, fingerprint, or facial recognition. Furthermore, if two-factor authentication is available, you should enable it – for your device and the apps housing your crypto wallet.
  • Decline the option to auto-save any crypto-wallet-related passwords. When entering a password, most browsers offer to remember them for future use. If your device gets accessed by someone malicious, they will easily be able to get into your wallet.
  • Never use public wifi. Hackers can easily breach the protocols of public wifi, giving them access to all devices on the network.
  • Turn off auto-updates for crypto wallet apps and operating systems. Sometimes, bugs can be exploited in new updates. Therefore, it’s best to wait a while for updates to be proven safe.

Use Multiple Storage Types

If you had large sums of cash, you wouldn’t put it all in one bank account – so why would you do it with crypto? To keep your portfolio safe, it’s best to spread it across multiple crypto wallets.

Furthermore, we suggest using different types of storage, with the majority of your portfolio being kept in an offline cold storage wallet.

Don’t Store Large Volumes on Exchanges

When people first start crypto investing, they tend to use an exchange to buy and store their tokens. As a beginner, this is an easy and convenient method to use. However, as your portfolio expands, you should seek alternative storage tools, such as a secure crypto wallet.

You shouldn’t keep crypto on an exchange because you don’t legally own it until it’s in your wallet. Some exchanges have stopped users from buying and selling crypto during market crashes or when prices are at an all-time high.

Not only does a wallet protect your crypto, but it also gives you full control over it.

Watch Out for Phishing Scams

As crypto becomes more popular, phishing scams are on the rise. With many people new to the space, and some adopters who aren’t overly tech-savvy, scammers are finding much success. So, you need to be aware of key warning signs:

  • Check apps are genuine before downloading
  • Don’t click on any suspicious links in emails
  • Don’t give any of your crypto wallet key information to anyone

More often than not, a wallet provider will not send you an email asking you to log in, create a new wallet, or transfer crypto to another location. You should immediately report any email you think is suspicious to clarify if it’s official or not.

Beware of Updates & Others Using Your Equipment

As mentioned, auto-updates can be a problem for some users. It’s best to turn them off for your crypto apps and operating system until they’re proven to be valid and safe. Secondly, if you aren’t a tech wizard, and an issue arises with your PC or phone, you’ll have to get a third party to look into the problem.

They won’t be able to access your wallet, but we suggest checking all your security protocols and checking that none of your security settings have been altered.

Keep Secure Copies of Your Private Keys

You’d be surprised how many people lose their private keys, leaving their crypto wallet inaccessible. Firstly, do not keep a copy of your private keys on the same device as your wallet – unless you’ve heavily encrypted the file.

We suggest keeping a hard copy outside of your home. This could be in a safety deposit box. Better yet, you could use Ecrypto’s digital safety deposit box.

Check The Destination Address for Any Transaction

It's incredibly easy to make a mistake when completing a crypto transaction. Entering the wrong destination address is one of the most common ways for people to lose their crypto. Often, these people have simply been attempting to move their own crypto to another wallet they own and wind up sending it to a random address, never to be seen again.

Digital Wallet Security Concerns Summarized

When you’ve chosen an incredibly secure crypto wallet, such as Escrypto, the only major concern you should have is your security practices. As highlighted, much of your crypto wallet security comes down to the actions you take.

Blockchain technology is built to be secure – as are crypto wallets. To keep your crypto protected, take the time to reinforce your systems, learn how best to store private keys, and be wary of phishing scams.

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