$3.8 Billion in Cryptocurrency Lost to Hacks Last Year - How to Avoid Them in 2023

$3.8 Billion in Cryptocurrency Lost to Hacks Last Year - How to Avoid Them in 2023

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With the rise of cryptocurrency, and its potential to revolutionize cross-border finances, individuals and businesses have started taking full advantage of digital currency. Unfortunately, this means that hacking has become an ongoing risk for crypto users. With media headlines continuously describing cases of stolen funds due to poor security practices it has become increasingly important to know how to protect crypto from hacks. In this blog post Ill be discussing what experts expect will look like by 2023 – guiding you on what tools and strategies you need currently implement into your workflow for maximum protection against hackers.

Understand the Basics of Crypto Security

A February 2023 report from Chainalysis, a blockchain forensics firm specializing in tracking down fraudulent activity, indicated that 2022 was an unprecedented year for crypto hacking with $3.8 billion stolen from cryptocurrency businesses and organizations. Crypto security involves how to keep crypto safe while managing risks, understanding how cryptography works with data encryption and virtual ownership and how to keep crypto safe that can result in financial loss. Understanding how to securely store digital tokens, as well as how to handle exchanges and activities involving cryptocurrencies, are important steps in utilizing crypto security most effectively. By having a smart strategy for crypto security, individuals can protect their investments in digital currency from potentially malicious actors.

Employ a Multi-Layered Approach to Managing Your Assets

Taking a multi-layered approach to asset management is critical for cryptocurrency protection. Without a comprehensive view of the risks associated with cryptocurrency, massive losses can occur due to unanticipated or uncontrollable events. Implementing protective layers such as vaulting, threat intelligence and timely notification systems are all crucial components of any cryptocurrency security measures. Various tools such as wallets, hardware, and firewalls should be employed to secure cryptocurrency assets. Building a culture of safe cryptocurrency storage practices within an organization is also key in protecting cryptocurrency investments. Taking these steps can significantly reduce the risk of theft or unauthorized access to your cryptocurrency funds while speeding up processes and simplifying ongoing management tasks.

Use Cold Storage Wallets when Storing Large Amounts of Crypto

Storing large amounts of crypto in an offline cold storage wallet is an excellent security measure to protect against pump-and-dump schemes and other malicious tactics prevalent in the crypto space. Cold storage wallets are not connected to the internet, making them significantly less vulnerable than online storage solutions that can be broken into more easily by digital criminals. Furthermore, you can check this article to protect yourself from the pump and dump crypto schemes. As pump and dump schemes have become more common, so have cold storage wallets, with their added safety measures becoming the go-to choice for those looking to store substantial sums of cryptocurrency securely.

Consider Using a VPN to Unblock Websites and Encrypt Data

Using a Virtual Private Network or VPN can help to secure crypto transactions while still allowing users access to the websites they need. A reliable VPN will encrypt data sent from your device, so if it is intercepted by cyber attackers, it cannot be read. Furthermore, a VPN can unblock websites that have geo-restrictions, ensuring access to important information. Additionally, using a VPN will keep your browsing history and IP address hidden, protecting you from tracking by hackers. VeePN is a great example of those VPNs that allow you to access exchanges from any location. Of course, if you want, you can check this useful content, to find numerous reviews. Also, consider using a VPN extension while browsing crypto websites. Why？ Well, a VPN extension can lead you to a secure website, which helps protect your data from potential malware or phishing attempts. But, be careful to use free ones, because free VPN servers can have many security issues, and they are not as reliable. Moreover, free VPN servers can sell your data.

Don't Share Your Private Keys with Anyone

It's important to protect your private keys and not share them with anyone, not even those you trust the most. Sharing your private keys makes it easy for someone to access your digital accounts or valuable assets without permission, which could put you at considerable risk of identity theft, financial fraud, or other malicious activity. Before you consider sharing or entrusting private keys with someone else, make sure that you understand all of the potential risks. Your security is too important to put in anyone elses hands.

Utilize Two-Factor Authorization Where Possible

While many people are aware of the importance of utilizing strong passwords, two-factor authorization is an additional measure that can greatly improve security. Two-factor authorization requires both something you know (such as a password) and something you have (such as a physical token or your smartphone). This makes it much more difficult for an unauthorized person to gain access to your account, even if they have your password. Many major websites and online services now offer two-factor authorization, and it is highly recommended that you take advantage of this security measure where possible.

Regularly Monitor Transactions and Withdrawals from your Wallets

To ensure that your assets are safe, it is essential to regularly monitor your cryptocurrency wallets for any unexpected or unauthorized transactions and withdrawals. This can be achieved through vigilant tracking of your wallets using robust security protocols, such as two-factor authentication, which provides an extra layer of security against hackers and other forms of cybercrime. By deploying multiple wallets and software programs, you can take the necessary steps to actively manage your cryptocurrency portfolio — giving yourself a peace of mind knowing that each transaction is strictly monitored. With these simple yet effective measures, owning crypto assets just became much more secure and organized!

Final Thoughts

In conclusion, using a multi-layered approach to crypto security is essential to protecting digital assets. Utilizing the seven workflow steps outlined in this blog post will increase your level of protection when utilizing cryptocurrencies and blockchain technologies. Cold wallets are best when securing large amounts of crypto; make sure not to share your private keys with anyone, and deploy two-factor authorization wherever possible. Additionally, dont forget to employ a virtual private network (VPN) to unblock websites and encrypt data when using public networks. To stay up-to-date with the trends of cryptocurrency security, be sure to check out this article from Forbes. Thanks for reading and keep your crypto safe!