5 Ways to Avoid Being Hacked


We have put together this guide to help individual investors prevent crypto hacking.

How to Prevent Crypto Hacking – For Individual Investors

Just as there is a chance of theft or fraud when using offline stores, there is always a possibility of falling victim to hacking due to the fact that crypto services are offered online. Hacking may occur due to operational issues with the service itself, but it can also occur due to user error. Because there is no way for investors to recover losses due to their own mistakes, investor caution is advised.

What investors need to remember is that responsibility for protecting crypto assets fundamentally lies with the user. But just as a bank can be robbed, a hacker can break into a user’s crypto wallet – essentially their private bank – and take their assets. With no insurance and nobody to hold responsible, how can you project your crypto assets against hacking?

Use 2-factor authentication

The first step to preventing hacking is to set up 2-factor authentication (2FA). When logging in to your crypto account, your wallet ID and password are the first authentication factor. 2FA means that after this identification process is completed, an additional authentication step is added.

This additional authentication is done via a unique code that it frequently created and activated. To receive the unique 2FA code, the user needs their phone. SMS or email 2FA can be easily intercepted if the hacker accesses your email account or transfers your phone number to a new device. Therefore, Google’s OTP app ‘Google Authenticator’ is often recommended as a 2FA method because it is free and generates a new code every 30 seconds.

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The cloud is the enemy of security “Offline storage is key”

Many users store their private key in a document, or store an image of the private key with WhatsApp, Kakao Talk or other messengers, in Google Drive or Dropbox, etc. This is very dangerous.

Hot wallets, which are connected to the internet, are convenient because they are accessible anytime. Users can trade anytime without having to move funds. However, their fatal flaw is that they are also convenient for hackers to attack remotely. The most common hot wallets are stored on desktop computers, exchanges or mobile.

Hot wallets should only be used briefly when users want to execute a trade. Otherwise, assets should always be transferred to a cold wallet for storage. A cold wallet is a physical device that is kept offline and stores keys. By storing keys on a personal device, they are kept out of reach of hackers. The private key to a crypto wallet should always be stored on an offline external hard drive or kept as a hard copy at home. The most common form of cold wallet is a hardware wallet.

Public Wi-Fi can also be targeted

There are many places where people use public Wi-Fi, including libraries, hotels, cafes, and airports. However, logging into crypto service accounts, wallets and exchanges while connected to public Wi-Fi can be risky.

Public Wi-Fi is less secure as it is designed to be used by numerous, unspecified persons. It is relatively easy for hackers to access these networks and connected devices. Man-in-the-middle attacks, malware attacks, and Wi-Fi sniffing are all examples of hacks over WiFi.

To avoid this risk, do not connect to public Wi-Fi when trading or checking your assets. It’s best to turn off your Wi-Fi to disable automatic Wi-Fi connection. Instead of using public Wi-Fi, you can connect to the internet using a wireless internet adapter (dongle) or by setting up a hotspot on your phone.

Beware of file downloads/emails on your laptop or mobile phone

Before clicking on any email or file download from your laptop or mobile phone, always first check if it’s from a trusted source. The downloaded file might contain malware.

Once malware is installed, it can be used to run various hacking commands. Malware can read your private key as you enter it and send it to the hacker, or even give the hacker access to your account and allow them to see your screen. Do not foolhardily click file links in emails or posted on communities such as Telegram, Facebook, Kakao Talk, Reddit, etc.

Use different passwords for your accounts

Using the same or similar password on several accounts makes all of them equally vulnerable. If a hacker hacks any one of your accounts, it’s only a matter of time until your remaining accounts are hacked too. All security experts emphasize that a unique and strong password for each account is an essential element of online security. If you have too many passwords to remember, one solution is to use a separate password manager.

With constant innovation comes constant change. Even though technology is intended to make life easier, that does not mean you can neglect managing your assets or take their safety for granted. Measures such as using a hard wallet with 2-factor authentication, using different passwords, accessing your account from a private internet connection, and refraining from downloading suspicious emails and files are the first steps to protecting your hard-earned assets.

Disclaimer

All investment strategies and investments involve risk of loss. Nothing contained in this website should be construed as investment advice. Any reference to an investment’s past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
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