If you are familiar with the crypto space, it would be no surprise to you that the issue of security is vital because, unlike fiat currencies, cryptocurrencies do not enjoy the same level of protection and insurance. While blockchains and smart contracts may prove to be secure and transparent, their usage also creates possibilities for online attacks and hacks. This could be a result of negligence on the part of the sender or the craftiness of the hackers or cyber attackers. Thus, the level of total security within blockchains is limited by human factors. From improper private key management to phishing attacks, there are numerous ways traders and investors could lose their investments and digital assets.
Atomic Wallet Hack
On June 2, 2023, users raised alarm about the loss of their assets on the Atomic wallet. The wallet had been attacked and hacked with $35 million worth of crypto assets being stolen from the users.
While others claim that the wallet lost more than the stated amount, there is an ongoing independent investigation to trace and possibly recover the stolen assets. The investigator which uses the alias ZachXBT, known to assist hacked projects, announced that one of the largest victims had lost $7.5 million in Tether.
Atomic Wallet is a non-custodial decentralized wallet that allows its users to have full control over their assets. Atomic Wallet allows users to back up their keys and store them locally on their devices. Hosting up to 500 cryptocurrencies, Atomic Wallet claims to have up to 5 million users. The wallet’s support team is collecting the addresses of users in the hope to manage the loss. This attack is just one of the many attacks witnessed by the crypto space. Some of the recent attacks include Jimbos Protocol’s $7.5 million exploit and a hostile proposal that took over Tornado Cash’s governance sometime in May.
Though there can never be a foolproof process for securing your cryptocurrencies and digital assets, it is extremely important to take all measures necessary to keep them safe.
What is a cryptocurrency wallet?
Cryptocurrency wallets are used to store crypto private keys which allows you to have access to your digital assets. These wallets can be either digital or physical. Digital crypto wallets include apps and online services while physical wallets refer to hard drives and USB sticks.
Your private keys are unique sets of strings of characters, both letters, and numbers, that act as a digital signature to your stash of crypto assets and should not be made public. They are your passcodes and can be used to authorize any transaction.
Some of the ways that you can secure your wallet include:
- Set up two-factor authentication:
By simply adding another layer of security to your wallet, you can reduce your chances of getting hacked. Two-factor authentication method usually requires extra verification when there is an attempt to log into your account. You would receive a one-time verification code through email or sms and can reject the login request if it was authorized by you. This stops the hack attempt since the hackers can not access the code unless you send it to them.
2. Use a strong password:
To enhance your security level, make use of an alphanumeric password. You can also add symbols to make it stronger. Also, consider changing your password often. Hackers could trail a wallet for a long time and bide their time. By frequently changing your wallet password, you make your wallet difficult to hack.
3. Use more than one wallet:
Ever heard of the phrase ‘do not put all your eggs in one basket’? It can not be any more true in this case. By putting your assets in multiple digital wallets, you share your risks and reduce the chances of incurring heavy losses all at once in the event of an attack.
4. Keep a look out for phishing ploys:
Phishing is a scam trick that causes users to give away their sensitive information such as their credentials, passwords, and login details. Some of the ways to get ahead of this trick include checking out the authenticity of the website or email used to contact you. Instead of using the link sent directly to you, head to the official site of your wallet and ask for support where you can clarify if there has been any issue with your account. Avoid clicking on shady links that would require your details.
5. Always update your software:
Usually, app and service updates include improved security features that make your wallet less vulnerable to attacks.
6. Use secure and safe networks:
When trying to access your wallet, ensure to use a trusted internet network. Avoid loose and public networks as they could be a gateway for hackers to access your information.
The ecosystem is crawling with blackhats and hackers. It is only necessary that users implore due diligence and carefulness to reduce the chances of losing their assets. By diligently following the different steps outlined in this article, one can reduce the chances of losing funds to hackers who are constantly waiting for a slip-up.
Written By Anthonymark
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