Cryptocurrency Security: how to protect yourself against crypto-related hacks

Bianca D. Bianca D.
17 Mar 2022
3 min read
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What does cryptocurrency mean?

Cryptocurrency is a digital currency that uses blockchain technology to secure its transactions. Cryptocurrencies are decentralized, not subject to government or financial institution controls and traded through online exchanges. Bitcoin is the first and most popular cryptocurrency but definitely not the only one relevant in the space today. It is extremely important to keep private information like your backup key, username, and password confidential to avoid having your funds stolen by scammers on the web.  

How much crypto has been stolen over the years? 

As of 2022, there have been many crypto-currency thefts, with hackers stealing an estimated $2 billion in cryptocurrency total. This is an alarming statistic, showing just how easily cryptocurrency can be stolen if you are not being careful. It's important to be vigilant and take steps to protect yourself from becoming a victim of crypto-hacker attacks.

How is cryptocurrency stolen?

Hackers steal cryptocurrency through a variety of methods. The most common method is to use a phishing attack. A phishing attack occurs when an attacker uses a bogus email or website to try and gain access to your personal information. Once they have access to your personal information, they can use this data to steal your cryptocurrency. Another common method of crypto-currency theft is by using ransomware. Ransomware is a type of malware that encrypts files on your computer and demands money to free them. This virus can be difficult to remove, so it's important to be careful when downloading and using files from the internet. And finally, some crypto-currency thieves may use social engineering attacks. Social engineering attacks occur when an attacker tries to convince someone they are about to download a file that will harm their computer or data. They will then take advantage of this person to steal their cryptocurrency.

How can you protect yourself from becoming a victim of a crypto-hacker attack?

Cryptocurrency storage can be done by using either a hot wallet that is online and connected to the Internet or a cold wallet such as a ledger that is offline and disconnected from the internet. The latest is always recommended for large amounts of Cryptocurrency and is considered a lot more secure and less susceptible to cyber-attacks due to it being offline. You get full ownership of your digital assets and you’re still able to make transactions and earn crypto through staking

Take extra precautions when writing down or storing your wallet keys since that is your password to gain access to all your funds stored on that account. Each wallet key is unique to the user and their own wallet created. If they need to log in on another device or their wallet accidentally logs them out, they will need their long backup key to gain access to their funds again. It is very important to store and lock away this code and not to share it with anyone in person on the web. Be sure to back up your passwords and change them regularly. One way to protect yourself from becoming a victim of crypto-hacker attacks is to use a strong password with numbers and characters. Make sure your password is unique and easy to remember so you don’t get locked out in the future when you change devices. 

Furthermore, be on the lookout for phishing attacks, and attempts by hackers to gain access to your personal information. They will often try to trick you into providing them with personal data or signing up for a service they believe will help them get money or other valuable items. A VPN can help protect your online identity and personal data from being accessed by cybercriminals. By encrypting your traffic, you will reduce the chances of your data being intercepted or stolen by hackers. You can protect yourself by reading online cybersecurity guides and following industry-standard safety precautions. If you do become a victim of a crypto-hacker attack, don't hesitate to contact your banks or financial institutions for assistance.

Don't forget to follow us @cryptonezo to stay updated with the latest blockchain and cryptocurrency news

Bianca D.
Bianca D.
About the Author

Financial Crime Investigator & AML Specialist. Crypto Educator NFT Marketing & Crypto Promoter DeFi & Web 3.0 Content Writer

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