How to Protect Your Assets from Hacking: Safeguarding Your Crypto

Imagine logging into your crypto wallet to find your funds gone despite all precautions. This article tells the story of one crypto user’s loss and outlines key safety tips to protect your assets.

ChangeNOW.io
4 min readSep 13, 2024

Imagine accessing your crypto wallet only to discover that your funds have disappeared. You haven’t downloaded any suspicious software, clicked on phishing links, or shared your seed phrase. Yet, despite these precautions, your money is gone, and your seed phrase has been compromised. This is exactly what happened to one unfortunate crypto user.

Let’s delve into this story and review essential security practices to safeguard your assets from potential threats.

The Growing Threat of North Korean Hackers

Recently, it was reported that North Korean hackers have developed sophisticated techniques to steal seed phrases, including extracting them from screenshots stored on your phone. A user on X, The Smart Ape, shared how his brother became a victim of malware concealed in a TV streaming app.

This incident is a stark reminder for all cryptocurrency users, regardless of their experience level, to stay vigilant. Let’s now explore some practical steps to protect your digital assets from cybercriminals.

1. Do Not Store Your Seed Phrase on Your Phone

Your seed phrase is the most critical element of your crypto security, and storing it on your phone exposes you to unnecessary risk. Mobile devices are vulnerable to hacking, and if your seed phrase is accessible on your phone, your assets may be at risk.

Recommendations:

  • Store it securely: Write down your seed phrase on paper and store it in a secure place, such as a locked drawer or safe. This may seem outdated, but it prevents digital theft.
  • Use a hardware wallet: Consider using a hardware wallet (also known as a cold wallet) to store your crypto offline, away from potential online threats.

2. Enable Two-Factor Authentication (2FA)

Two-factor authentication (2FA) adds an extra layer of security to your accounts by requiring a secondary verification method, such as a code generated by an authenticator app.

Recommendations:

  • Activate 2FA: Ensure that 2FA is enabled on all exchanges and wallets.
  • Use an authenticator app: Prefer authenticator apps like Google Authenticator over SMS-based codes, as they offer stronger security.

3. Create Strong and Unique Passwords

Weak passwords leave your accounts vulnerable to attacks. It’s essential to create strong, unique passwords that are difficult to guess.

Recommendations:

  • Complexity is key: Use a combination of letters, numbers, and symbols for a stronger password.
  • Use a password manager: Password managers can help you generate and store complex passwords securely.

4. Stay Informed About Security Developments

The threat landscape in cryptocurrency is constantly evolving. It is crucial to stay informed about the latest security risks and best practices.

Recommendations:

  • Follow reputable sources: Stay updated by following trusted crypto news sites and cybersecurity blogs.
  • Join online communities: Participate in crypto forums and communities to exchange security tips and learn about emerging threats.

5. Be Wary of Phishing Scams

Phishing scams remain a common method for attackers to gain access to your sensitive information. These can come in the form of fake emails, websites, or social media messages.

Recommendations:

  • Verify URLs: Before entering any personal information, ensure the website is legitimate by checking for secure indicators such as the padlock symbol.
  • Exercise caution: Avoid clicking on suspicious links or responding to unsolicited messages.

6. Limit the Information You Share Online

Sharing personal information online can make you a target for scammers. Even discussing your crypto holdings publicly can attract unwanted attention.

Recommendations:

  • Use pseudonyms: In online forums, consider using a pseudonym instead of your real name.
  • Avoid sharing sensitive information: Do not post screenshots of your wallet or other details that could compromise your security.

7. Diversify Your Holdings

Concentrating all your crypto assets in one wallet increases your risk. By diversifying, you reduce the likelihood of losing everything in a single attack.

Recommendations:

  • Spread your assets: Use multiple wallets to distribute your holdings.
  • Consider a combination of hot and cold storage: Keep a small amount in a hot wallet for transactions and store the majority in a cold wallet for added security.

Conclusion

As the cryptocurrency space continues to expand, so do the threats posed by malicious actors. However, by taking proactive steps such as securing your seed phrase, enabling 2FA, using cold storage, and diversifying your assets, you can significantly enhance the security of your crypto holdings. Whether you are new to cryptocurrency or an experienced investor, these measures are essential for safeguarding your assets.

Feel free to share your own security tips in the comments. Have we missed anything important?

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ChangeNOW.io

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