5 ways to keep cryptocurrencies safe

By Grace Ormsby

August 10 2020
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Like normal money, cryptocurrencies can be vulnerable to theft, but there are ways to minimise the risks, according to an encryption specialist.

NordLocker’s Oliver Noble has highlighted how “although a bitcoin itself cannot be stolen, a private key that ‘opens up’ your digital wallet and allows you to sign your transactions can”.

He said that cyber criminals who are looking for easy money will use brute-force attacks, malware, phishing, social engineering and other tricks to make their way into victims’ virtual wallets.

“Fortunately, developing some basic cyber security habits will help you protect yourself from cryptocurrency theft,” Mr Noble continued.

Here are his five top tips for cryptocurrency investors:

Don’t talk online about your cryptocurrency

“It’s always better to keep to yourself your financial status or your plans to treat yourself to a purchase.”

According to Mr Noble, social media platforms and online forums are places where messages about having a digital wallet can draw unwanted attention and make you a target.

Use advanced protection for your private keys

While there are many ways to store your private keys, one of the safest methods is to keep them encrypted.

The encryption specialist has explained that “no hacking attack on your mobile or desktop wallet can cause you damage if you encrypt its contents first”.

Split your cryptocurrencies between different wallets

Like you should with real money, the best way to keep possessions safe can be to store them in different places.

“If one gets broken into, the rest remain untouched.”

Always use a VPN when making online transactions

A VPN service “creates a virtual tunnel between you and the sender or receiver of your funds”.

That way, no outside actors can intercept it.

Beware public Wi-Fi especially – Mr Noble said free networks are often unsafe and allow hackers to access your private data, including your digital wallets.

Use 2FA for an extra layer of security

Two-factor authentication enhances the security of your online account every time you log in.

Consistent changing of passwords makes it extremely difficult for hackers to access the account.

About the author

Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

About the author

Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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