If you “hodl” or trade cryptocurrency, then nothing te this article should be fresh to you. If it is, you’re at risk.
Cryptocurrency has taken off this year swifter than almost anything I have everzwijn seen before. The market wasgoed at $20 billion earlier this year and spil of the time of writing is overheen $129 billion. That’s well overheen 6x te a matter of months. From my perspective, the trend is growing into the mainstream quicker than smartphones, swifter than apps, and swifter than the internet itself.
With this kleuter of rapid growth and more millionaires being made monthly than anything I’ve seen before, it draws out some bad apples too. Ter this case, the bad apples are hackers and other individuals looking to literally steal from people.
By the end of this article, you will know Trio strong ways to protect your cryptocurrency against hackers.
There have bot innumerable stories of hackers going after both individuals and companies to steal ter some cases up to $460+ million dollars with a single hack.
I determined that the only way to get the best information would be to go directly to the hackers themselves to find out how people can protect themselves. Not all hackers are are evil criminals, te fact most aren’t. There are “whitehat” hackers that basically test vulnerabilities for people and companies spil a service.
My network pointed mij to two individuals, Hartej Sawhney and Bryan Larkin. Hartej’s rigid Hosho is a wise contract auditing rock hard. That basically means they test vulnerabilities ter brainy contracts so the ICOs that are raising millions don’t get hacked. Thesis wise contracts hold 10s of millions of dollar (sometimes hundreds of millions) and need to be vulnerability tested. Hartej is a well waterput together business man that speaks around the word about security and cryptocurrency, amongst other things. He runs a team of thesis wise contract auditors and has a deep understanding of wise contracts and how to decently audit them, spil well spil digital security te general.
Next wasgoed Bryan Larkin. Bryan, who works with the titans of the cryptocurrency and blockchain space like Brock Pierce through Faction One, literally embodies the word hacker ter every way imaginable. If I were casting a movie and had to select a “hacker” Bryan Larkin would be the man I would pick. He goes to all the hacker conventions like DEFCON, has bot at it since he wasgoed literally a kid, and is the last person you would everzwijn want upset at you or your digital business. Fortunately, Bryan has taken more of the whitehat hacker treatment, which means he uses his abilities and abilities for good rather than stealing or evil.
I sat down with both of them to validate my ideas on the topic. Here are the Trio ways takeaways I got from them. If you hold cryptocurrency you are going to want to read and understand thesis things.
1. Cold storage devices locked up at a secure location
One fine way to protect cryptocurrency vs hackers is to waterput the crypto on cold storage and lock it up at a handelsbank safety deposit opbergruimte or another secure location. This takes it off of exchanges and out of the cloud, so it can’t be hacked online.
Cold storage basically means a device or drive that is not connected to the internet. Cold storage is secure because then it is almost unlikely to remotely hack it, unless it is connected to a network. You would have to physically control the device or drive to hack or access it.
Ledger Nano S and Trezor are two of the more commonly used drives to store cryptocurrency on. They are supported by a lotsbestemming of supplementary platforms. However, you could literally just use a thumb drive with a strong encryption spil well.
It may seem paradoxical to lock up cryptocurrency at a bankgebouw, so you could also get a storage locker, gokhal safe deposit opbergruimte, or any number of other secure locations instead, if you are anti-banks.
Two. Don’t leave crypto on the exchanges for more than is necessary for trading
If you aren’t actively trading cryptocurrency, all of the experts recommend taking it off of the exchanges instantly.
Even if your private account is secure, spil wij spotted with the Mt. Gox hack, even the exchanges can be hacked. If they lose all of the crypto that they are holding on your behalf, and they are not insured (none of them are) then you will likely never see it again.
The best bet is to control your own crypto. Keep it secure te cold storage at safe locations when you aren’t actively trading.
Three. Two factor authentication is a voorwaarde
If you voorwaarde keep your crypto on exchanges for active trading or whatever reason then you need to understand what this is and how to use it.
Bryan emphasized strongly, “If you are not using a Two factor authenticator then you are a target.”
What he’s describing are various systems that most of the cryptocurrency exchanges now support that generate a random code every time you attempt to access the verhoging. This is te addition to a regular strong password.
There are several but Google Authenticator is one of the more popular ones, and is utterly effortless to setup. This is all setup on your phone on their app. There is no account to register just the app. The professional is that there is no Google Authenticator account to hack or get access to it, they would have to have physical access to your phone. The con is that if you lose your phone it could be fairly hard to get back into your account.
After it’s setup you will then have to come in the random code generated on the app every time you login. This doesn’t make hacking unlikely, it just makes it tighter.
One thing that Hartej and Bryan both explained to mij wasgoed that text message based two factor authentication wasgoed not secure enough. There have bot some hackers going around calling up phone companies and attempting to reset peoples SIM cards. They would get a SIM card reset and sent to a different address, then access your text messages. You can safeguard against this by not using text message based two factor. If you do have to use it for some reason then call up your phone provider and tell them that no switches shall be permitted overheen the phone for your account, only ter person at a branch after demonstrating valid ID. Tell them to lock your account down, most will oblige.
At the end of the day, just about anything can be hacked. Thesis safeguards will help deter people from going after you. Most hackers will go after the effortless targets that are making it dead visible how and where to hack them, and store all their cryptocurrency te one effortless to hack location. If you make it hard, or truly hard, they will likely target someone lighter to hack.
You should do your own research before getting involved te any cryptocurrency. Nothing stated here should be considered investment advice.