How to prevent theft and leakage of U in crypto wallets

How to prevent theft and leakage of U in crypto wallets

  After peaking in price in late 2017 and subsequently fading in popularity, cryptocurrencies like Bitcoin experienced another more significant spike during 2019 and 2020, reaching $660,000 in 2021 surpassing previous all-time highs. With all of this comes an increase in the number of public hacking incidents as well. Considering that many investors are still unfamiliar with the system and may not know how to secure their investments, hackers have come up with some clever ways to steal funds. Some of the most prominent thefts have occurred in obvious places: some hackers have even blatantly changed tokens tied to one wallet to tokens on another or copied a project's official website, details to social media, and victims who fall for it can only watch as their tokens are stolen and they cannot be recovered, only eaten.

Next I will analyze a few of the current mainstream ways to store tokens.

Hot Wallet

    Online wallets are also known as "hot" wallets. A hot wallet is a wallet that runs on an Internet-connected device such as a computer, phone or tablet. This can create vulnerabilities because these wallets generate.Private Key  ; coins to these devices connected to the internet. While hot wallets can be very convenient in the way that you are able to access and trade with your assets quickly, they also lack security.

    This is the easiest way of storage to be stolen, as I wrote in the beginning, hackers will go through various ways to fool you and make you authorize your wallet access to them on their phishing website, at this point as soon as you connect to your wallet and enter your password on their website or ask you to fill in the helper words, this means that your wallet has been hacked, you may ask what can be done about it There is one way, that is, you realize that your account may be hacked, then you have to enter the wallet at the highest gas fee to transfer all the coins in your wallet to another wallet account, here, remind you that it is better to register several wallets, spread out the coins, do not put all the tokens on a wallet account, also can prevent the account from being hacked into can quickly transfer assets.

Cold Wallet

    Cold wallets, too, are the most secure storage option. The simplest description of a cold wallet is a wallet that is not connected to the Internet and therefore has much less risk of being compromised. These wallets may also be referred to as offline wallets or hardware wallets.

    These wallets store the user's address and private key on something that is not connected to the internet, often with software that works in parallel so that the user can view their portfolio without putting their private key at risk.

    The safest way to store cryptocurrencies offline is through: "Paper Wallet".  A paper wallet is a cold wallet that you can generate for certain websites. Then two are generated, a public key and a private key. The private key can be written or printed on paper, and the cryptocurrency in these addresses can only be accessed if you have that paper. Many people fold these paper wallets into thin sheets and keep them in a safe deposit box at their bank or even in a safe deposit box at home. Paper wallets have no corresponding user interface other than a piece of paper and the blockchain itself; this is the most secure way to store them but also the easiest way to lose them, so the best way is to write more copies and put them in different places.

     There is also the hardware wallet which also falls into the category of cold wallets. While hot wallets are vulnerable to attacks due to the constant internet connection, cold wallets are inconvenient because they do not provide a mechanism to transfer funds and to solve this dilemma, the cryptocurrency industry has come up with hardware wallets - specialized electronic devices designed to store your private keys and ensure that only you can initiate transactions. Most hardware wallets are similar to USB flash drives. To set it up, you typically use a companion program or application and create a new set of keys. These keys can only be accessed by connecting the hardware wallet to your laptop or smartphone. In other words, the private keys are never recorded, copied or transferred to the computer - ensuring complete isolation from the network. In terms of security, these hardware devices function almost identically to paper wallets. The only way for someone to access your cryptocurrency is to steal the device and access its onboard storage. That said, there is a small chance that all hardware wallets can be exploited through their software interface - although the underlying engineering may be foolproof. After all, nothing is unhackable.

Physical coins

    As the name suggests, it is to create a coin entity out, each coin has a corresponding private key, with this private key can open the corresponding wallet address, but this kind of coin-making due to the government of several countries do not allow, so there are not many on the market, but there are many fraudsters to create fake coins to cheat others to buy, so we should take extra precautions when buying physical coins.

To sum up

    There are a few suggestions for you

1. It is best to prepare two devices, one for browsing projects and watching tokens, and the other for buying and selling, and the network environment of the two devices should be well isolated.

2. It is best to use several storage methods to store the tokens, do not put all the eggs in one nest, so as not to break them all at one touch.

3, with a hot wallet to prevent more online fraud, but you may realize that your wallet account may have been hacked into, to immediately transfer assets, do not have a lucky break.