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Protecting a crypto wallet is the most critical and challenging task. The safety of valuable assets depends on the quality of their implementation, so this aspect is always given maximum attention. Thanks to this approach, the wallet becomes perfectly protected, and hackers have a minimum chance of getting to someone else’s cryptocurrency. This article will teach you how to achieve such results and what needs to be done for additional wallet protection.

How are crypto wallets protected?

Recovery phrase

To understand a recovery phrase, you must carefully study its definition. It means a set of randomly selected words (12-24 pieces) is automatically generated when setting up a wallet. Their purpose is to restore access to cryptocurrency in case of a breakdown, loss or change of the device used. Also, the recovery phase is an essential element of wallet protection. Only if it is entered correctly will it be possible to manage digital assets. Because the recovery phrase consists of unrelated words and requires their arrangement in a specific sequence, it becomes impossible to enter the correct combination randomly. This ensures reliable wallet protection as long as the recovery phrase remains inaccessible to third parties. At the same time, to determine whether crypto has recovered, the owner only needs to place all the words in the appropriate field. If this is done correctly, access to valuable assets will be opened automatically.

Encryption

To ensure reliable protection of the wallet, it is necessary to ensure that no third party can access the private keys that open the way to managing the cryptocurrency. Different encryption methods are used for these purposes. With the help of special algorithms, it is possible to hide valuable information, even in cases where hackers find a way to penetrate the data storage. At the same time, the wallet owner does not experience any restrictions since they can decrypt the private keys. Encryption is also used as the main way to protect any contacts between the wallet and external servers. It eliminates the possibility of interception of data during their transmission and guarantees complete confidentiality.

Multi-factor authentication

To protect accounts on social networks, online stores, online banking and websites, users are always offered to install multi-factor authentication. It allows you to choose one or more additional verification methods that will be activated each time you try to log into your account. A similar process is used to protect a cryptocurrency wallet. It allows its owner to install an additional wall for hackers on the way to valuable assets. Moreover, in most cases, multi-level authentication completely scares fraudsters. They stop all hacking attempts and pay attention to less protected places where various assets are stored.

A whitelist of withdrawal addresses

To protect wallets, a white list of withdrawals has recently been used. This function is optional and activated at the wallet owner’s discretion. It allows you to set addresses to which you will be allowed to withdraw crypto assets. When activated, sending funds in any other direction will be impossible. This means that even hackers who have gotten to your cryptocurrency cannot transfer all of your valuable assets to themselves. This method of protecting your wallet limits its owner a little. However, in return, he gets confidence that no one will be able to steal his cryptocurrency.

Methods of additional protection

Even though a cryptocurrency wallet is perfectly protected from fraudsters, its owners can further increase the level of security for storing valuable assets. To do this, it is recommended to use several additional methods that will reduce the risk of losing cryptocurrency. Keeping important information secret from strangers is the main one. This method involves restricting access to recovery phrases, passwords used for multi-level authentication, and other data. This approach will reduce the risk of hacking the wallet and protect the assets stored there.

Using a VPN is another way to protect your wallet. Because a VPN encrypts the Internet connection, all cryptocurrency transactions will be carried out outside of unprotected networks. This will eliminate the leakage of confidential information and reduce the risk of hacking the wallet. For the same reason, excluding public Wi-Fi transactions is equally essential. If you do not do this, hackers can intercept valuable data and use it to steal cryptocurrency.

You need to supplement your protection by checking your device for malware. Hackers often use malware to record the data entered and copy all information related to cryptocurrency wallet transactions. Checking should be done regularly using official antivirus programs. This procedure will take some time, but it will provide additional protection for your wallet.

Conclusion

Crypto wallet is a secure software product. It uses various security components that work effectively and minimize the chances of hackers getting other people’s assets. Combining them lets you achieve ideal wallet protection and gain confidence that your cryptocurrency will not become someone’s prey.