9 Tips to Secure Your Bitcoin and Crypto Wallets You Must Follow (Updated 2024)

One of the most prominent promises of blockchain-based technology and cryptocurrencies is their security.

However, over the past few years we have seen hundreds of reports of investors and traders losing their valuable crypto savings, and the reasons vary. From improper private key management, hacked exchanges, and phishing scams, there are many ways bad actors can attack your savings and potentially steal them.

In Bitcoin and crypto, you are your own bank. But, unlike traditional banking, the biggest disadvantage is that in almost all cases, once the digital currencies leave your wallet, there is no way to return them. There is no insurance.

This is why it is extremely important to do everything possible to guarantee the safety of your crypto holdings.

Your cryptocurrency is only as safe as your wallet

Users should understand that the threat to their cryptocurrency is not through the blockchain, but rather through their wallet or exchange. Information can be tracked and stored at the provider level, and this includes your private key. This can then be accessed by hackers, allowing them to steal your savings.

The competition between the different digital wallets is growing as the number of people using cryptocurrencies is also increasing.

This is why it becomes important for users to be very selective when it comes to the wallet they use. As a general rule, you should only use cryptocurrency wallets developed by reputable companies with a proven track record. For this, you can visit our trusted crypto wallets guide or check out the seven best non-custodial crypto wallets.

However, after doing this, there are many things you can do to guarantee the safety of your Bitcoin and other cryptocurrencies. Here are nine tips you absolutely need to know and stick to.

Don’t put all eggs in one bag: Also use cold storage

This is not only a good practice when it comes to investing, but also when it comes to security. You should never put your entire cryptocurrency stack in a single wallet, even if you use hot or cold storage.

The best way to do this is to use multiple cryptocurrency wallets and spread your savings in a way that won’t affect you as much if one of them gets compromised.

The use of cold storage devices is strongly recommended. These wallets are not connected to the internet and as such are almost impossible to hack unless you fall victim to a phishing scam, which is also discussed below. The most popular brands are Trezor and Ledger.

Be careful with your mobile device and computer

Many of the cryptocurrency wallets also come with a mobile app, and this is one of the things that hackers tend to exploit.

When it comes to managing the security of your mobile-based wallets, there are three things of great importance:

Never use public Wi-Fi. Hackers can break the connected devices. Turn off your auto-updates for both apps and the device operating system (OS). Be sure to stay updated though, in case a security breach is discovered – you better allow time before updating. Always use a 2-Factor Authenticator (2FA) when applicable. This is a timed code that changes, and the most popular application in this field is Google Authenticator. This second layer of security will require a code for every login to your wallet or account. This ensures that it will be impossible to log in without physical access to your device (or to hack it). Never automatically save crypto-related passwords when offered by Google Chrome and any other password saving tools. Protect your computer and phone with an up-to-date antivirus tool.

Another thing to consider if you do a lot of trading is to buy another mobile device or computer that you will only use for cryptocurrency purposes. This device should be clean of any apps, as any app with ill-considered permissions can become a target for hackers and a potential breach.

Service safety

In continuation of the above, it is critical to move your cryptocurrency out of a device that needs servicing. This can include things like software updates, hardware updates, and so on.

You should also never leave your device unattended and under no circumstances lend it to anyone. Even if the person you give the device to is a trusted party, they may accidentally do something to it that compromises its security, whether intended or not.

Back up your wallets

As a general rule, you should always store your wallet’s private keys offline. This way, hackers cannot access them. It is also extremely important to have backups of these private keys – also stored offline.

Additionally, it is highly recommended that you also store a backup of your keys outside of your home – this way you will have access to them in the event of an incident such as a fire, earthquake, or whatever compromises the integrity of your home.

Although it may sound surprising, a recommended place to store your private key would be your bank’s vault. Of course, this should only be a backup – you should always have access to your private keys when you match them.

Beware of phishing scams

Phishing scams have been increasing in popularity over the past few years as more and more people get involved with the cryptocurrency.

There are many ways someone can compromise the security of your device, including through fake Google, Facebook and YouTube ads, fake apps mistakenly uploaded to the App Store and Google Play Store, phishing domains that target popular and existing impersonate websites, and so on.

Once you send your private key to a phishing scam website, you can rest assured that your cryptocurrency holdings will be gone within minutes, if not seconds. The worst part is that it is usually very elaborate, and even experienced people can fall for it, as the details are sometimes so hard to see. They usually look exactly like the original.

That’s why it’s critical to never visit websites you don’t trust or are outside the scope of your computer’s protection. Double and triple check the apps you download and be 100% sure that they are the official ones and not fake.

We reported about an unfortunate user who downloaded a similar app from the famous Exodus crypto wallet. This incident resulted in him quickly losing almost $80,000 worth of Ethereum (ETH) and NEO coins.

Double check the destination address

One of the challenges cryptocurrency users face is that if they get the address wrong, the funds can be lost indefinitely with no way to get them back.

This is why you should always triple check the address you send to for any payment transaction. There are also malicious programs that can modify a simple “copy and paste” procedure so that you end up pasting another address that belongs to the bad actor.

A common way to guarantee the safety of your transfer is to first send a micropayment and then send the entire amount.

Check the URL locks

When using a web wallet, make sure that there is an SSL security mark in the address bar of your browser. It stands for a secure website seal and ensures that your browsing is encrypted.

The website should start with HTTPS rather than HTTP, and you should see a lock next to the URL.

Avoid storing a large portion of your crypto on exchanges

Although many of the exchanges currently leading the market are considered safe and even have insurance, it is never a wise idea to leave the bulk of your crypto on exchanges.

Remember, not your keys = not your bitcoin!

You should never hold more than you need to trade on exchanges, because if it gets hacked, your money is as good as gone. We have seen many big name exchanges, the most recent of which is KuCoin falling victim to hackers. In addition to exchanges being hacked, your crypto could be put at risk if the company running the platform is subjected to law enforcement.

Keep your possessions private

There is a common saying in the cryptocurrency field about the old fashioned $5 key attack. What this means is that someone can threaten your health or your life with a wrench that costs $5 at most stores and get you to give them your private keys.

Although you can use technologies like multi-signature wallets and so on, in most cases the attacker won’t really care.

This is why it is absolutely essential to never brag and brag about your cryptocurrency to anyone. No one needs to know exactly how many bitcoins you own or that you own at all. Keep it to yourself, and there’s no way you’ll be targeted for it.