Securing Your Cryptocurrency
  • 30 Mar 2023
  • 4 Minutes to read
  • Contributors
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Securing Your Cryptocurrency

  • Dark

Article Summary

Similar to your bank and credit card accounts, you do not want malicious actors to compromise your cryptocurrency accounts. It's imperative to ensure your cryptocurrency is protected, and luckily, the steps to safeguard your funds are similar to protecting any other accounts where sensitive information resides. Here are the 10 steps we recommend you take:

First, if you are new to cryptocurrencies, please check out our on-demand webinar: An Introduction to Cryptocurrency, where BlackCloak Chief Information Security Officer Daniel Floyd discusses the basics of the digital currencies.

Secure Your Email Account

The most important and vulnerable account in your digital life is your email account. Your email can be the doorway to access numerous accounts, including those tied to your cryptocurrency. To learn more about how and why you should secure your email account, check out this client guide.

Secure Your Crypto and Financial Accounts

Secure your financial and crypto accounts in the same way you secure your email accounts:

  • Use a strong and complex password or passphrase that is difficult to guess.
  • Use different passwords for each wallet or account.
  • Use dual factor authentication for additional security. To learn more check out our on-demand webinar: Dual Factor: Adding Additional Security.
  • When possible, use an authenticator app instead of SMS/text-based verification. Authenticator apps help protect against SIM swapping attacks because the verification codes come from the app on the device, not from a message sent to a mobile number.

Secure Your Mobile Devices

In addition to securing your email address, you should also secure any mobile devices linked to your cryptocurrency accounts. Check out our client guides on how to harden your iOS devices, your Android devices and how to shore up your mobile devices on the account level.

Secure Your Browsers

It is also highly recommended that you ensure your browsers are continously up-to-date. Malicious actors can take advantage of vulnerabilities to compromise browsers and potentially steal valuable information and funds. To learn how to keep browsers up-to-date, please consult our client guide on updating your browsers.

Back Up and Protect Your Keys

When you create a crypto account, be sure to back up and protect your keys and recovery phrases. Store a backup of your private keys (in paper, digital, or other form) in a secure location, such as a safe deposit box at your bank. This will ensure that you have a way to access them or restore your wallet in case of loss due to a catastrophic event at your home (fire, flood, theft, etc.)

Diversify Your Portfolio

Avoid holding all of your cryptocurrency in one wallet or exchange. To learn more, check out our client guides on the different types of crypto wallets and exchanges.

Secure your crypto assets and reduce risk of loss by using a combination of hot and cold wallets. Distribute your assets in a way that you minimize the impact if one of the wallets or exchanges is compromised or becomes inaccessible. This will protect you and your portfolio by limiting loss related to theft, device failure or a breach of a single crypto platform.

Beware of Social Engineering Attacks

The social engineering attacks malicious actors use to target other accounts can be deployed to try and compromise your cryptocurrency accounts. It's important to be on the lookout for the hallmarks of a cybers cam. Check out on on-demand webinars on **how to spot cyber scam red flags, what to know when facing off against phishing emails**, and cyberattacks that target your phone, including "smishing" and "vishing."

Use a Secure Network

Always use a secure and trusted network for processing crypto transactions. Never use public Wi-Fi or untrusted networks. You can also use a VPN for additional security when accessing crypto accounts on your home network. A VPN changes your IP address and location, keeping your browsing activity safe and private from thieves and threat actors.

Keep Your Holdings Private

Never boast about or reveal your cryptocurrency holdings to anyone. Keeping the status of your holdings private will reduce your visibility and in turn reduce your likelihood of being targeted.

Doublecheck the Destination Address

A simple way to protect your cryptocurrency from accidental loss is to always verify the receiving address to which you are sending crypto assets. A crypto wallet address is a string of case-sensitive letters and numbers that uniquely identifies the wallet.

Transactions processed for different crypto tokens and coins may be on separate networks and they are not always compatible. If the receiving address is incorrect or incomplete, the funds you are sending might be lost indefinitely. Always check and double-check to verify the receiving address to which you are sending is correct.

A common way to ensure the safety and success of your transfer is to send a small amount to an address to test the transaction. If the transfer is successful then proceed to send the remaining amount.

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