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It is possible for traders and investors to lose their cryptocurrency investments due to a wide range of conditions, including theft, phishing scams, computer failures and other types of cyberattacks. For this article, we’ll discuss ways to keep your cryptocurrency safe from hackers and fraudsters. However, do bear in mind that hackers are always on the lookout for vulnerabilities and ways to profit from your crypto assets.

Major Types of Storage

• Cold storage (or an ‘offline digital wallet’) is one of the safest options for storing bitcoin (and other cryptocurrencies), as these wallets are not accessible via the Internet, So, storing the bulk of your crypto in a cold crypto wallet is an excellent solution for holding some of your cryptocurrencies securely. Just be aware that if you lose your cold storage or you forget your private keys, you may (or may not) get the cashback. It’s like losing the keys or password to a safe.
• A hot wallet represents a wallet that is constantly connected to the internet (‘online wallets’); it enables the storage, transmission, and receipt of tokens. Hot wallets are associated with public and private keys, which aid in transaction facilitation and serve as security safeguards.

Always physically record access numbers. If you lose access keys it can be disastrous. The Coinbase wallet is deemed to be one of the safest cryptocurrency wallets in the world, due to its incorporation with the Coinbase Exchange platform which holds most of its assets offline in cold storage. This wallet provides investors and crypto-enthusiasts assurance that their digital assets are safe. But as with any technology, it could be compromised as hackers design methods to steal your coins.

Will I Get My Money Back?

The likelihood of being able to reclaim your digital currency once it has been taken is quite low. While tracking your stolen bitcoin is theoretically achievable by monitoring the blockchain, doing so in practice is made difficult by the anonymous nature of the money, as well as the fact that the thief is most likely to use a bitcoin exchange to convert the currency into regular cash right away. On the other hand, money leaves a trail, and you may be able to follow it to the location of the criminal’s residence. Even if you are successful in tracing the bitcoin using public ledgers, because most cryptocurrency is decentralised, there aren’t many paths you can take to get your money back.

How Can We Avoid Becoming Victims?

• A good Antivirus is imperative, which should always be kept updated. Numerous Antivirus software suites are available. It’s a good idea to use a password manager, ensuring that only strong passwords are used. Do some research to find the application that suits your needs.
• Make use of a secure internet connection when trading or conducting cryptocurrency transactions, and avoid connecting to public Wi-Fi networks, if at all possible. Even while connecting to your home network, use a virtual private network (VPN) for enhanced protection. A (VPN) hides your IP address and geographic location, keeping your surfing activities safe and secret from prying eyes.
• Store most of your crypto in a cold wallet offline (hardware wallet).
• Use a hot wallet for the smaller amounts you will use. Let’s put this into perspective. For example, if you had a wallet full of cash and you were, let’s say, flashing it around in a bar, the inevitable could happen. This may seem obvious but it happens to be the same with crypto if it is stored online for all to see, which may invite a hack.
• As mentioned before, it is advised to store keys and passwords physically (as simple as on a piece of paper) out of harm’s way. Don’t lose them. How many times have you forgotten your passwords as soon as you set them?
• We cannot overstate the necessity of having a strong password when discussing security. According to a recent study, three-quarters of consumers in the United States have used the same password on more than ten different devices, applications, and other social media accounts. According to the report, most of them use the same password in more than 50 different places. Always use a strong and complicated password that is difficult to guess, and change it regularly to keep your information safe. Use a new email address and complex password to set up any accounts. A new, clean email address, that you will only use for the virtual currency account is recommended. The risk of you being targeted via your email account is less this way.
• Don’t discuss with anyone about owning the digital currency. If it is easy to see that you own a cryptocurrency from your social media activity, you are much more likely to be a target.
• Don’t let your browser remember your log-in details.

• In light of recent hacks, investors should diversify their holdings among several exchanges. Invest in multiple cryptocurrency exchanges to spread the risk. Take time to strengthen your general online security. Use sites like ‘Get Safe Online’ and ‘Cyber Aware’ to understand what excellent security looks like and make improvements.