Protecting Your Digital Assets: A Guide to Cryptocurrency Wallet Security

When crypto was first introduced to the world, it completely changed the way we viewed money. We quickly realized that the physical form of money competed with digital money but we could still use it in the real world. 

Ownership of and investment in cryptocurrencies are now becoming fairly popular all over the world. With more people using digital assets, it leads to more cybersecurity risks. Therefore, you must be aware of how to properly secure your digital assets. 

This is the purpose that crypto wallets serve. It helps you send, receive, and store your crypto.

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Being the gateway to interacting in the crypto economy, crypto wallets can be an interesting target for cyberattacks, as every big digital product. This underscores the importance of crypto wallet security. Below, we’ll highlight some tips for ensuring your crypto wallet is secure. Keep reading to learn more.

Lessons from Casino Table Game Security Protocols

Security protocols for gamers’ favorite casino table games can teach us much about the importance of securing crypto wallets. What goes on at a casino table is serious business, and certain rules guide the conduct of everyone present, players or dealers. 

In the same way, the contents of your wallet are high-value assets and must be treated as such. A few strategies you can learn from casino table security protocols include the following:

• Limit Access: Both dealers and players have strictly limited access to chips during a game. This is important to keep the chips safe from manipulation. Apply the same strategy on your crypto wallets: minimize exposure of your wallet by accessing it only when you need to do a transaction
• Monitor Strictly: Casino tables are strictly supervised, and so should your wallet. Monitor every activity closely.
• The Place of Penalty: Casinos impose harsh penalties to deter players from manipulating chip movement. Understand that the loss of your cryptocurrency in the event of a hack is final, as crypto transactions are irreversible. This is enough penalty for managing your crypto wallet carelessly. The fear of loss is a good motivation for careful management.

The Right Wallet Matters

Hardware wallets are considered the most secure crypto wallets available. This is because they use physical hardware that works effectively to keep your assets stored offline, making it a lot more difficult for people to hack them. 

On the other hand, web wallets, being accessible through a web browser, are online wallets. Though easily accessible to hackers, they make it easier for you to manage your funds since you can log in from any device with an internet connection.

You could even spread your assets across multiple wallets to avoid putting all your eggs in one basket. Some people keep their most valuable assets stored on physical hard drives and the ones they need access to more frequently online. 

Keep It Updated

It is impossible to stress how important it is to ensure your digital wallet software is always up to date. In fact, not only your digital wallet software but also your devices. 

The crypto world is ever-evolving. Valued at over $2 trillion, it is of real interest to genius hackers constantly trying to find a weakness to exploit. Thus, the software of crypto wallets is regularly reviewed. Lessons are learned on how to strengthen the wallet further, and these lessons are diligently applied. 

Software updates often include bug fixes, enhanced encryption, and improved authorization. As a rule, it is best to have the updated version of your crypto wallet because that’s more secure. Obsolete wallets leave you twisting in the wind, as they make you more vulnerable to attack.

Setting update reminders is best, so you won’t miss any updates.

Use Two-Factor Authentication

Two-factor authentication no doubt ensures that your online accounts are extra safe from hackers. How it works? It puts an additional layer of security on your account that restricts access to it.

The one-factor authentication involves using only a password to log into your account. This, as soon as you input your selected password, your account becomes accessible for use. With the two-factor authentication, an additional one-time special code sent to you via email will be required.  

That means that even if a hacker gets your wallet password, it doesn’t give them automatic access to your cryptocurrency, as they still have to bypass the second layer of security.

It is not wise to the careless about your crypto wallet, as digital assets are high-value assets indeed. Crypto wallet security is of utmost importance. You can apply some lessons from the security rules on casino tables, such as monitoring your wallet activity strictly and limiting exposure time. You also want to make sure you keep your wallet software updated, so as not to be sitting ducks for hackers and attacks.