How To Better Protect Your Money From Hackers During Crypto Market Boom

“I got hacked and I don’t even know how it happened,” yelled one cryptocurrency user on. “I left my wallet open in my browser in MetaMask and they entered my wallet. You have lost all saitama, floki and hokk «.

A small cryptocurrency investor, @ltjyaussie He says he was always on the lookout for wallet security issues, but this time he didn’t know what was hitting him. Cyprus-based investor was the victim of a systematic attack. Against all his perceived defenses, they mocked him anyway.

He is just one of millions of ordinary investors, quite a few of them are beginners, who could face similar threats as they try to cash in on the expected bitcoin (BTC) record rally during the last two months of this year and beyond.

So what can retail cryptocurrency investors do to make their money as safe as possible?

Never share your private keys

James Wo, who, as founder and CEO, manages millions of dollars in hedge fund Digital Finance Group, notes that a useful rule of thumb for safeguarding crypto assets is “never let anyone know your wallet’s private keys.” Simply put, private keys are a complex form of password that prevents theft and unauthorized access to your wallet.

Wo cautioned against using unsecured internet connections when transacting on personal devices such as cell phones and tablets. This means double checking the URL of verified websites you visit frequently, especially the ones you use to trade. Or just bookmark them.

“Users are also advised to keep multiple wallets to store their cryptocurrency,” Wo told BeInCrypto in an interview. This will help “protect users’ wallets” and mitigate losses in the event of a breach, he added.

Wo warned that opening “any suspicious and unknown links while performing crypto transactions” could be costly. This is because “hackers insert malicious links in advertisements and emails” or even text messages, to carry out what is known as a phishing attack to steal funds stored in wallets.

Read also NFT JPEG’d service launches CryptoPunks Lending and Chainlink integration

Phishing scams

Phishing comes in various forms, but it generally involves an attacker tricking unsuspecting victims into revealing confidential information or visiting a scam website. Users often receive emails or messages allegedly from a trusted wallet provider asking them to change their passwords or initial phrase.

Once this information is in the hacker’s hands, they will use it to create new login credentials and steal funds.

In other instances, hackers take control of legitimate websites (such as Pancakeswap) and replace them with a fake interface, before tricking users into entering their private keys on the rogue site. Using a virtual private network (VPN) generally solves this problem, experts say, as it encrypts traffic.

“In addition to phishing, there are also malicious mobile apps that have the hidden ability to record user jokes or view user screen activity,” Wo explained. “Retail investors who choose unqualified exchanges to invest or trade also run the risk of losing their money by violating these exchanges.”

Cryptocurrency dust attacks

2017 bull run was largely led by retail investors. Now, with the number of ordinary people investing in cryptocurrencies around the world increasing by almost 900% last year, according to According to Chainalysis, small investors should, once again, play a major role in boosting bitcoin. towards the psychological mark of $ 100,000 this year.

But many remain vulnerable to cyberattacks. Raul Ayala is a cryptocurrency investor from Los Angeles, California, USA One day a coin called key7 appeared by chance in his Coinbase wallet and he didn’t know what to do with it.

Also Read Polker’s Play-to-Earn Game (PKR) Listed on BitMart Exchange – Akon Approved

“y advised me not to try [to] Sell it, otherwise it would end up with my wallet. So I’m not even going to touch it, “said an irritated Ayala, in a tweet. He had just escaped a dust attack, an offensive activity used by cybercriminals to violate and anonymize the privacy of cryptocurrency users by sending a small amount of tokens to their wallets.

” amount of tokens sent is so small that they are hardly noticeable, and that’s where the name ‘dust’ comes from,” says Wo, the hedge fund manager. ” transactional activity of these wallets is then tracked by the attackers, who perform a combined analysis of different directions to anonymize the person or company behind each wallet.”

Dust attacks can be prevented by using wallets that create new addresses each time a transaction is made, making traceability difficult, he added.

Blame it on retail investors

Oleg Belousov, CEO of digital asset exchange N.Exchange, told BeInCrypto that “the best way [to safeguard funds] is to have a self-hosted cold wallet. This is a type of wallet that is not connected to the Internet, where most thefts occur.

It suggests storing funds in hardware wallets like Ledger or Trezor, although recent security tests have revealed that the latter can be cracked within 15 minutes to gain physical access to the wallet.

Belousov prefers that ordinary investors keep their assets in official portfolios of the coins they buy and not in “applications that promise not to be kept” when often “their source code is closed or unverified.”

However, retail investors could be liable for losing their money.

“Believe it or not, most people send their money to scammers on their own initiative, which means that social engineering (phishing) and high-yield investment programs are responsible for 90% or more of scams . Newcomers are victims, ”Belousov said.

Read also ETH price surpasses $ 2K after comments from Elon Musk


All information on our website is published in good faith and for general information purposes only. Any action taken by the reader on the information found on our website is strictly at your own risk.

Source link


Related Posts

© 2024 Cryptocoin