As the use of blockchain technology and cryptocurrencies continues to grow at a rapid pace, it has become increasingly crucial to implement robust security measures. According to recent statistics by ImmuneFi, a blockchain security firm, there has been a significant increase in cyber attacks during the third quarter of 2023. The report reveals a surge of 153% in such attacks compared to the same period in the previous year, with 76 cases reported. These fraudulent activities have resulted in a staggering loss of $685 million, which is 60% higher than the previous year’s loss of $429 million. These figures highlight the urgent need for improved security measures. Thereafter, to combat the growing threat landscape faced by the crypto industry.
The Rise of Cyber Attacks, Security Is The Need of the Hour
The increasing number of cyber attacks highlights the advanced tactics employed by hacker groups targeting blockchain projects. As blockchain technology evolves, hackers continuously discover fresh and inventive means to exploit vulnerabilities. In Q3 2023, DeFi protocols experienced the most substantial losses. Therefore, amounting to almost $500 million. Therefore, one can trace back to the fact that DeFi apps often rely on smart contract code. Thereafter, it can be vulnerable if not thoroughly secure.
Smart contracts are a fundamental aspect of the blockchain and DeFi ecosystem. They allow for the automatic execution of contracts. Nevertheless, the automated nature of these contracts can also lead to complications and security risks. With the increasing use of smart contracts in the cryptocurrency industry, it is crucial to prioritize comprehensive security measures. Thereafter, to safeguard against the rising threat of hacking groups that target smart contract vulnerabilities.
Tips to Secure Your Crypto Asset From Hackers
While there has been an increase in global crypto adoption, it has also become a hotspot for cyber attacks. With new crypto-threats coming up every day, it can be risky to make transactions on the platform. Here, we have tips to keep your assets safe and conduct secure trading.
Look for Reliable Exchanges
Before considering any investment, particularly cryptocurrencies, it is crucial to conduct comprehensive research. Unfortunately, the cryptocurrency sector has experienced a significant increase in fraudulent activities, such as scams, phishing attacks, and other attempts to steal sensitive data like private keyphrases. Thus, it is crucial to choose a reliable crypto exchange for your investment.
Use Complex Long Form Passwords
Creating a robust and intricate password is crucial in protecting your crypto wallet from cyber attacks who might try to breach it. To enhance the security of your wallet, it is advisable to mix letters, numbers, and symbols when generating login credentials. This practice can effectively shield your wallet from potential cyber threats such as credential stuffing or password spraying.
Diversify Your Portfolio
It’s common for cryptocurrency users to divide their crypto assets among several wallets as a security measure to safeguard their investments from cyber attacks. This strategy helps to decrease the possibility of losing all funds in case one of the wallets is hacked by cybercriminals. By segregating the crypto assets, users can lessen the impact of potential security breaches and secure their funds effectively.
Keep Your Passwords Safe
To ensure the safety of your crypto wallet, it is imperative to maintain the confidentiality of your password and store it securely. Your password serves as the sole means of accessing your account and conducting transactions. Therefore, any disclosure may result in theft or cyber attacks associated with your profile.
Since passwords are typically complex, a password manager can assist you in remembering them without the risk of forgetting. Furthermore, it is important to select a crypto wallet that provides advanced security features in order to safeguard your assets and information from hackers.
Never Use a Public Wi-Fi
It is crucial to refrain from using public Wi-Fi when conducting cryptocurrency transactions. This is due to the absence of adequate security measures to counter cyber criminals. Hackers employ malware and spyware to gain access to your private data, including passwords. Therefore, to avoid potential security breaches, it is essential to wait until you connect to a private and secure internet connection. Thereby, before initiating any transactions.
Always Use a VPN to Avoid Cyber Attacks
When conducting a purchase on public Wi-Fi, it’s best to have a VPN installed on your device. VPNs function by concealing your IP address and online activity. Thereafter, obstructing hackers from tracing your movements. Therefore, this makes it harder for them to detect potential targets and introduce harmful software.
Use Multi-Factor Authentication
Many cryptocurrency wallets now provide an additional layer of security through multi-factor authentication. Therefore, this process ensures the user’s identity before authorizing access to their wallet. Biometric data, such as facial recognition and fingerprint scanning, are widely used for this purpose. Thereafter, making it exceedingly challenging for cybercriminals to impersonate users.
Always Use an Antivirus Software
As you explore the realm of cryptocurrency, it is crucial to give priority to security measures to safeguard your investments. Therefore, an effective method to minimize the stress of avoiding potential fraud is to install antivirus software that can notify you of hazardous links or fraudulent crypto websites that could jeopardize your crypto wallet. Therefore, whether you are contemplating investing in NFTs or broadening your portfolio, never neglect cybersecurity.
With the cryptocurrency industry’s growth, it is imperative to prioritize comprehensive security measures to safeguard crypto assets from potential cyber threats. To reduce the risk of cyber attacks, these tips will ensure the safety of crypto investments. Thereafter, prevent fraudulent activities in the constantly evolving crypto industry.