Over the past decade, blockchain-based cryptocurrencies have significantly altered the payment ecosystem.

However, cryptocurrencies with their rapid growth are not completely hack-proof.

Though the underlying technology is secure, the digital wallets that are used to store cryptocurrencies are still vulnerable to cyber attacks. However, you can stay safe by keeping your account secure. This article will help you understand cyber attacks, how to know if your account is hacked, and some of the best practices to protect your crypto wallets or accounts.

What are cyber attacks?

A cyber attack is an intentional malicious attack to breach the personal or financial information of an individual or organization. The attacker seeks to benefit from the breached data in some way or the other.

One type of cyber attack is called a “brute-force” attack. The hacker will try to submit multiple passphrases to guess it correctly. The attacker checks all the possible passwords patiently until he finds the right one. If a user uses their last name, date of birth, or other, easily-guessed words, the attacker can crack it.

Hackers will also use a tool known as exhaustive key research. By using a key derivation function, the attacker can guess the right password. Other types of cyberattacks include malware, ransomware, and phishing. However, you minimize the risk to your accounts from cyber attacks through some precautionary measures.

How to keep your crypto accounts safe

Account security is critical, especially regarding cryptocurrencies. Here are some steps to keep your crypto wallets or accounts safe from outside threats:

  • Create strong passwords: Use different characters like letters, numbers, and symbols and create a complex password to make it impossible to crack. Use different passwords for different accounts to avoid a single point of failure. When you create a complex password, make sure you remember it.
  • Activate 2FA: 2-Factor Authentication is crucial for your accounts. Activate it on a site’s settings and protect your account. 2FA adds an extra layer of security so that hackers cannot breach your account.
  • Use cold wallets: Choose cold wallets over hot wallets to store your cryptocurrencies. Cold wallets are not connected to the internet, so they are less prone to cyber-attacks or hacks. Keep a major portion of your holdings in a hardware wallet and use a little portion of crypto in software wallets for trading and transaction purposes.
  • Use secure internet: Always use a private internet connection to avoid hacks and thefts. If you have to use a public WiFi network, use a VPN to keep your browsing private and safe.
  • Never share private keys: If your private keys are leaked, your wallet will surely be compromised. So, avoid sharing them in public and secure your funds.
  • Double-check the details: When you want to send money to other accounts, double-check the recipient’s details. Even when you enter correct details, some malware programs can edit them to access your account. So, check the details multiple times to make sure they are correct.
  • Use reliable exchanges: When choosing a crypto exchange, always look for a reputable exchange that follows high-security standards. By doing so, you can keep your account safe.
  • Beware of phishing emails: Some random emails and links will contain malicious software, and when you click them, they can hack your accounts. Avoid clicking on suspicious emails and links, and double-check the source.
  • Backup your seed phrase: Losing your crypto holdings is gut-wrenching. Keep a backup of your seed phrase. It will help you recover the funds in your wallet.

How to know if your account is hacked?

If you find that funds from your crypto wallet were sent to an unknown address without your knowledge, your account was most likely hacked. Set up notifications for all your crypto transactions to notice hacks quickly, and take immediate action.

Different websites can help you find out if your account has been hacked or not. One of the best tools to check if your account was hacked is ‘have i been pwned?’The site checks your email account and mobile phone for any data breaches. Head over to their website and enter your email address or phone number. The website will check if there are any data breaches. It also checks if your account details are revealed to the public online.

If you confirm that your crypto wallet is hacked, transfer the funds as quickly as possible by creating a new wallet. Change the login details and activate 2FA authentication. If you find that you are left with no funds in your wallet, contact the cyber security helpline, and they will help you recover the funds. Make sure you scan all your electronic devices to avoid the recurrence of hacks.

Bottom Line

Account security is vital for your personal and financial information whether it is an email account, bank account, or crypto wallet. It is better to be safe than sorry when it comes to your private information.