Although the private key in the crypto wallet is designed very complicated, in fact, account holders still need how to secure a crypto wallet. A crypto wallet is like a bank where someone keeps their wealth to protect against crime or theft.
However crypto wallets are not always safe from hacking, cybercrime is also growing along with the growth of financial technology. Blockchain technology is suspected to be very difficult to hack but hackers are always trying to find loopholes to steal cryptocurrency in various ways.
That is why for crypto traders or investors it is very important to how to secure crypto-wallets. Because it is their money.
- 1 What is Crypto Wallet?
- 2 Why Secure Crypto Wallet is Important?
- 3 How to secure a Blockchain wallet?
- 4 How to secure ETH wallet
- 5 How secure is a wallet app?
- 6 How to secure a Trust wallet from hackers?
- 7 How to secure a Metamask wallet?
- 8 Conclusion
What is Crypto Wallet?
This crypto wallet is a software program that serves to receive and transfer cryptocurrency tokens in a blockchain network. Simply put, a crypto wallet is a bank account, where users use it as a place to store money, transfer money to other accounts, and other functions.
But the basic difference between a crypto wallet and a bank account is that a crypto wallet doesn’t actually store crypto coins, but it’s just a record of the transaction, amount, or value of the cryptocurrency. While the coin or cryptocurrency is actually in a ledger that is connected to a computer in the Blockchain network.
This crypto wallet consists of a private key, this is a unique and complex sequence of characters, which is very difficult if we remember them in our brain memory. This private key is the key where we need it when opening a crypto wallet account.
Furthermore, crypto wallets use public addresses, although this is also a unique string of characters, this address is the point when someone will transfer crypto tokens to other users.
So the recipient of the crypto token must share the public address with the sender. Unlike the private key, it must be kept by the wallet owner securely, because its credential, must not be known to others.
Why Secure Crypto Wallet is Important?
Crypto wallet security is very important because it will be the access or entrance for users to see the amount of cryptocurrency, sending crypto coins, or receive funds to other users.
If the user loses the private key, then he will lose access to his wallet so he can’t send funds or see the amount of cryptocurrency stored in the wallet.
Some wallets don’t just use one private key, sometimes when you create a new wallet, you will be given a seed phrase that you have to write down manually and store securely. It will be a backup key in case you lose your private key for example. Seed phrases contain 12-13 random words that you must save by manually typed them on paper. But you can also save it in a notepad, as long as it’s safe.
While there are crypto wallets called cold wallets, and hot wallets. A hot wallet is a wallet that is connected to the internet, while a cold wallet is an offline wallet because it is not connected to the internet.
There is also the term custodian wallet and non-custodian wallet. Custodian wallets refer to users who have full control over their wallets. While non-custodian wallets refer to the control of wallet management by third parties on behalf of users. For example, a wallet provided by an exchange is called a non-custodian wallet.
How to secure a Blockchain wallet?
To secure a blockchain wallet there are three important steps you need to prepare.
- The first step is to verify your email. Set for every wallet provider account login to send a code to the user’s email address. This can prevent you if you don’t think you’re trying to log in but receive a login code email. That means someone trying to break into your wallet needs to enter the required login code.
- Enabled 2-factor authentication, allows users to receive SMS login code or Yubikey, or Google Authenticator. This layer of 2-factor security is very good and safe unless you share the login code with the thief.
- Write down a seed phrase that can be useful when you lose your private key, it’s better to write it down on paper and keep it safe and protected.
- Make a backup of your wallet information, if you store your wallet information on your computer, making a backup with paper or a flash drive will come in handy when you have problems with your computer.
How to create a secure bitcoin wallet?
As an important prerequisite before creating a Bitcoin wallet. Your computer must be clean from malware. Update your antivirus, your internet connection must also be secure, so your information is unlikely to be stolen.
It’s good that you don’t just use one wallet, for example, if you store large amounts of Bitcoin, create a paper wallet, or use a hardware wallet it will be much safer.
And other wallets you can use to send related crypto investments or trading. You keep in the wallet only the required amount of funds.
Create paper wallet a secure Bitcoin wallet
Creating a paper wallet is very easy, it only takes a few steps. Here are the steps.
- Go to the BitAdress page.
- Move the mouse wherever you want, until the indicator shows 100%, or you can also type any text in the box until the indicator reaches 100%.
- A few seconds later the Bitcoin Address appears on the left, and the private key on the right. Continue by clicking “Paper Wallet” in the top menu bar.
- Then click “Print” to printing your paper wallet.
But actually, there is still a risk, because making Bitcoin addresses and private keys via BitAddress is using the internet. If the site is infected with malware, it is very possible that the wallet address and private key information could be recorded by hackers.
Or if your computer has malware, it may make the created information insecure. But so far there have been no stories of using a paper wallet someone lost their funds.
Create Electrum Bitcoin wallet
Electrum is a Bitcoin wallet that provides high-security features and many users have chosen this wallet. Here are the steps to create an Electrum wallet.
- Visit the download page here.
- Choose a file installer wallet to adjust to the operating system of the device.
- Install the executable file you just downloaded.
- Create a new wallet and choose “Wallet with two-factor authentication.”
- Read the disclaimer and click “next”.
- Choose to create a new seed. Click “next”.
- Save 12 seeds which are random words, you can write down them on paper and save them offline. It’s useful for recovery if you lose access to your wallet.
- Retype the 12 seeds that you have saved in the box that appears then click “next”
- Create a strong password to encrypt the wallet. Click “next”.
- Your computer must be connected to the internet for the next step.
- Read terms of service and type your email address. Click “Accept”.
- Scan the barcode on the google authenticator, or use the unique key that appears. Enter the code from google authenticator from the app. Click “next”.
- Bitcoin wallet now ready to use.
How to secure a Binance wallet?
Binance is popular global exchange, it also has a wallet that supports multiple cryptocurrencies. As a large exchange, it can be vulnerable to hacker attacks. Here are some steps you can take to secure a Binance wallet.
- Use a strong password and change it regularly.
- Enable 2-factor authentication (2FA).
- Check the list of authorized devices, make sure you only use devices you recognize.
- Turn on address management to limit wallet addresses to withdraw funds. It allows Binance to send an email confirmation for each new wallet address wallet added.
- Avoid phishing websites, make sure you log in through your real Binance address.
- Follow API guidelines for advanced users. Consider restricted access IP based addresses and create a whitelist to enable IP addresses.
- Use hardware such as the Yubico YubiKey or Universal 2nd Factor.
We’ve already gone with some Binance wallet security tips, however, it is advisable to keep the number of funds in the Binance wallet as needed. Due to several reports on the hacking of Binance Smart Chain which is a smart contract engine compatible with Ethereum Virtual Machine.
How to secure a Coinbase wallet?
Coinbase wallet is separate from Coinbase account, this is an important note for Coinbase wallet users which is a custody wallet, where users have full control over their assets. Users can find Coinbase wallet on the Google play store. Unfortunately, some users have complained about the security of this wallet. Some say they do not receive the coins sent. Some have lost their assets. Time-consuming pending status. Etc. So maybe it makes you will thinking twice to use the Coinbase wallet.
Coinbase’s security system is a bit different from Binance’s, but in general, it’s a secure Coinbase wallet with the following tips.
- Use a strong password.
- Use Universal 2nd Factor (U2F), it’s better than google-authenticator. You can use Yubico. But if you don’t willing to spend money. Google authenticator can reduce the risk.
- Secure your email. It important because will associate with your Coinbase account. Let say if you log in via new devices, it needs confirmation to your inbox.
- Lockdown the mobile account to prevent social engineering fraudster.
- Keep device clean and up to date.
- Make sure you log in via Coinbase’s original site to avoid phishing. Bookmark it if necessary.
- Check regularly your device authorized login. A deleted unauthorized device from the list.
- Utilize Coinbase Vault to multi email approval withdrawal confirmation. It’s will delay withdrawal by 48 hours.
How to secure ETH wallet
The Ethereum wallet functions to store ETH tokens that can interact with projects on the Ethereum Blockchain. ETH coin security is very important and a priority. The following steps may be able to minimize the risk of theft.
- Choose your Ether wallet carefully. If you don’t use Ether often, hardware wallets like Trezor, Ledger are the best options. For fast Ether transactions, Metamask is another option.
- Make sure the site address is correct. If your transaction is forwarded to an unsecured address. Be careful again because the thief on MyEtherWallet.com uses a redirect similar to the wallet’s genuine site.
- Add ETH directly to Ether wallet instead via smart contract. Because the smart contract is less secure instead of the Ethereum blockchain itself.
- Uses strong passwords with unique characters. Good at least 40 characters.
- Use Universal 2nd Factor like Yubico Yubikey. Or at least use Google authenticator as free software.
- Use VPN to secure your entire connection to all devices.
- Use Web 3 safely. Web 3.0 is a third-generation internet service that uses artificial intelligence to make search smarter.
How secure is a wallet app?
The wallet application is a wallet that uses a smartphone to access it. There is also a risk of vulnerabilities such as having your device stolen. And other vulnerabilities such as bugs that can cause malfunctions.
To minimize this risk, it is important that you read user reviews. User experience is the benchmark for wallet app security. Choose a wallet application developed by a trusted company. That’s a great way to avoid data breaches.
How to secure a mobile wallet
If you use a smartphone that has a crypto wallet application installed and stores a large number of funds in it.
It is very important to protect your smartphone with a screen lock to prevent someone from playing with your smartphone. They can access the crypto wallet if you save the password in the password manager.
Maybe your device has fingerprint authentication to unlock the screen. It’s safer than a swipe code. But the risk is if the fingerprint device is damaged, you have trouble opening the screen.
So you can choose a safe and convenient one because you can also create a complex swipe code as a PIN. It’s also a good idea to install an antivirus to prevent malware because Android is currently one of the targets of hackers because of the large number of users.
How to secure a Trust wallet from hackers?
Trust wallet is one of the most popular crypto wallets. However, some users reported that their Trustwallet had been hacked. This causes their funds to change hands because hackers have access to do so.
How to securing Trustwallet you can do it through account settings. You need to enable a passcode, which serves to confirm each time you log in to your account.
Furthermore, if you make a transaction, for example on Pancakeswap, after the transaction is complete, immediately log out. Then you also need to clear the internet cache to clear your browsing history. Here you can learn via youtube video for securing Trust wallet.
How to secure a Metamask wallet?
Metamask is an ERC-20 Ethereum token compatible wallet. It consists of two parts, namely a wallet and a web browser extension. Can be used on Google Chrome, Firefox, Brave, and Edge to communicate with the Ethereum blockchain.
Here the important steps when using Metamask for the first time to keep your Metamask wallet safe.
- Make sure you download Metamask from https://metamask.io/. Confirm it use an SSL connection.
- Create wallet and setup. It needs two-step. Creating a password and backing up the seed phrase.
- Create a new wallet with a very strong password because Metamask does not support 2FA.
- Use Metamask key vault to secure login. Learn here to use Key vault.
The Metamask wallet has supported the growth of the Ethereum blockchain. But the risk is still possible, you have to control your funds. Do not store unneeded funds in Metamask.
The growth of cryptocurrencies offers a financial solution, but it also comes with its own risks. Perhaps no technology is perfect without flaws.
Swimming in the sea of cryptocurrency investments requires a secure Crypto wallet. Besides, you also have to understand that cryptocurrency investment has its own risks.
You may hear success stories of someone getting rich because of Bitcoin or other cryptocurrencies. You need to also pay attention to some crypto players who failed and went into depression. Do your research and understand the risks, control the flow of your funds so that there is a balance.
Crypto, forex, and CFD investing is a risky business, you should spend within your risk tolerance. You are fully responsible for your funds.
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