Cryptocurrencies have always attracted hackers and fraudsters because of their value. Every year, they try to get hold of investors’ money, looking for new methods of scamming.

That’s why it’s important to understand and use security measures to keep your digital assets safe. In this article, we will talk more about cryptocurrency security.

Overview of Crypto Hacks in 2023

According to the recent Crypto Security Annual Report from PeckShield, more than 600 major hacker attacks took place in the crypto space, resulting in a loss of about $2.61 billion in 2023.

While this figure is impressive, it is less than the amount stolen in the previous year, which exceeded $3.6 billion. The number of hacker attacks and scams related to cryptocurrencies decreased by 27.78% in 2023 compared to the same period last year.

This is due to the increased vigilance of the community, the joint efforts of Web3 executives, and the enhanced negotiation tactics of blockchain companies.

Before moving on to security measures, we need to know what exactly cryptocurrency security is.

Crypto security is the measures taken to protect cryptocurrency transactions from fraud and to safeguard digital assets. It involves the use of cryptography to protect information and communications, ensuring that only authorized individuals can access data.

Security measures include protecting user accounts, storing assets securely, and using two-factor authentication (2FA). Cryptocurrencies use encryption to verify transactions, and the security of these transactions is important to prevent unauthorized access and fraud.

How to Ensure Crypto Security

1. Use Two-Factor Authentication (2FA)

Two-factor authentication (2FA) is a security feature that adds an extra layer of protection to your cryptocurrency accounts. Besides your standard credentials, 2FA requires you to provide a second form of identification.

This is usually a unique code generated by an authentication program or sent via SMS. You can install a 2FA app on your smartphone, such as Google Authenticator or Authy. These apps generate temporary codes that change regularly, providing additional security.

2. Use a Unique And Strong Password

It’s important to create a strong and secure password that hasn’t been used anywhere else before. Don’t write down your passwords in easily accessible places. Instead, use a password manager to store and manage complicated passwords, such as 1Password or Bitwarden.

3. Avoid Phishing Scams

Phishing attacks are the most common threats to users. Data by Chainalysis showed that there has been a staggering increase in the number of approval phishing scams over the past two years.

This is a type of fraud that uses fake emails or websites that look like a legitimate source. So be careful when clicking on links or downloading attachments from unknown sources. And don’t forget to check website URLs before entering any important information.

4. Store cryptocurrency in a hardware wallet

If you plan to keep your cryptocurrency investments for a long time, you should use cold storage alternatives such as hardware or paper wallets. This method prevents hackers from accessing your funds because your private keys remain offline.

5. Avoid public Wi-Fi

Use only secure networks and devices to conduct cryptocurrency transactions. Avoid using public Wi-Fi networks to access your accounts, as they are vulnerable to hackers and snooping. If you can’t avoid using public Wi-Fi, use a virtual private network (VPN) for added security.

6. Choose a trustworthy exchange

The number of cryptocurrency exchanges is impressive, but I will tell you those that offer reliable security and protection for your cryptocurrency investments. Taking into account all security measures, the safest are Kraken, WhiteBIT, and Coinbase.

They have the highest percentage of storage cold wallets, WhiteBIT — 96%, Kraken -95%, and Coinbase — 90%. Storing cryptocurrency in cold wallets reduces the risk of theft.

All of them use 2FA or WAF to protect your funds and block hacker attacks. They also have KYC verification and AML checking, which is a big plus for the safety of users and their money.

Conclusion

Cryptocurrency security is essential in the digital age. Therefore, you should be careful and aware to avoid falling for fraudulent schemes. By following the above security measures, you can ensure the safety of your cryptocurrency assets.