Can Crypto Wallets be hacked?


To be frank. We all love cryptocurrencies. That's only because it has the potential to double the investment in a very short period of time.

However, like other digital portals, crypto wallets are vulnerable to cyber-attacks, which can sometimes result in individuals losing their entire investments. Despite the threat, there are ways to protect yourself.

Before we get into those, let's discuss some of the techniques hackers use to gain access to crypto wallets.

1. Phishing.

This is one of the most widely used hacking techniques to date. Since users themselves grant access, there is a high chance of people being scammed. Hacker emails with fake website links are sent to potential targets. Once the user enters the authentication details, they are done and dusted.

2. Two-factor authentication compromise.

Almost all cryptocurrency exchanges use two-factor authentication to secure transfers. However, it can sometimes backfire. Hackers use various methods such as simulated cloning, eavesdropping, etc. to intercept authentication messages.

3. Malware

Old tech, but it still works like a charm. The device is infected with the help of a keylogger. Cross-scripting injection is placed in web pages. This way, legitimate users are redirected to malicious websites the moment they enter.

How to protect yourself from possible wallet hacking?

1. Select a non-custodial wallet.

If you have decent cryptocurrency holdings, try switching to a non-custodial wallet. However, in this case, more than ever, you need to take care of your keys. If the keys are lost, you may lose all your belongings.

2. Ditch unregulated exchanges

It is in your best interest to hold your crypto assets on a regulated exchange. Unregulated exchanges bring additional risks. In most cases, there is little proper management. If you lose your money, you have no chance of getting it back.

3. App-based 2FA

If you hold cryptocurrency on a well-regulated cryptocurrency exchange, consider using app-based two-factor authentication. However, this should be done in conjunction with SMS verification. Using application-based two-factor authentication provides an additional layer of security, as SMS-based two-factor authentication is more vulnerable to compromise.

4. Avoid reusing passwords.

Reusing the same password on multiple platforms increases the risk of your crypto wallet being compromised. You can avoid threats by using separate passwords for different platforms.

Reusing your passwords can do significant damage to your online wealth, not just cryptocurrencies. It further leads to crimes like identity theft, which only lead to serious consequences.

The Bottom Line.

Crypto investing is easy to make money. However, it comes with risks. Threats such as cyber threats and high volatility must be addressed. It provides the same advantages like B. No government regulation, high speed transactions and confidentiality can be exploited by hackers. However, phishing attacks are easy to deal with if you are vigilant. Just follow the steps above.