In September 2020, a Slovakian exchange reported that hackers were able to cart off US$5 million from its hot wallet accounts. In March of 2019, Bithumb was taken for about $13 million by a hacker.
If you thought those numbers are huge, wait till you learn about the $1 billion in cryptos that were stolen from Bitfinex in 2016.
The fact that such large exchanges and platforms can suffer breaches mean that just about anyone can be had. That does not have to be you, though. That is why we have come up with a piece on the best security protocols to follow when holding and trading cryptocurrencies.
Wallets/ Exchanges
First things first, make sure you are trading and holding your cryptos on trusted platforms only. We do not want to endorse any, but some players have been around for a long time. That does not mean the tide can’t sway anywhere tomorrow, but they have an established track record of trust.
When choosing wallets, make sure to know the distinction between cold and hot storages. Look for the one that best attends to your needs, and you are good to go. Finally, be wary of the platforms you are using even if they seem to be the real deal. Hackers are incredibly smart these days, creating fake platforms to look like the real thing so that you trust those.
Password Habits
Passwords are a strong defense against any cyber threat. In the same vein, they could also be a weak door. It all depends on how you have treated your password creation process.
As a rule, with passwords, we recommend:
● Using a password generator to come up with the best passwords
● Storing your passwords in a password manager
● Never using the same password for more than one account
● Never sharing your passwords with anyone
● Changing your passwords at a frequent, manageable pace (could be twice in a year, once every quarter, etc.)
To buttress your strong password, enable two-factor authentication for an extra layer of security.
Network Security
Your network is just as important to your cryptocurrency security as is any other thing. You might not know this but hackers can breach your internet connection to hijack your data. That data includes your interaction with your crypto wallet, exchanges, and other platforms.
With that data, they can retrace your steps and steal all of your money.
We don’t want that to happen. Thus, we recommend:
● Never connecting to free and public Wi-Fi networks
● Downloading a VPN to encrypt your internet traffic
● Updating the firmware of all devices connected to your internet network
● Changing the router details such as default name and password
● Updating all apps on all connected devices
● Segregating the internet connection on which your units are connected.
Final Words
Human error remains one of the largest causes of data breaches and hacks. It is in your best interest to update yourself regularly on how to stay safe online – and implement the knowledge base also. By doing so, you stand a better chance against hackers looking to get you for all that you have.