Basic precautions when using crypto wallets

Regardless of the wallet used, there is always a threat of losing funds. Let's try to figure out how to reduce the likelihood of a negative outcome.

Currently, there are several main ways to store cryptocurrencies. Earlier, in one of our articles "How to store Bitcoin? Understanding wallets" we have already described the most popular methods for storing crypto savings among users, and also considered their advantages and disadvantages. In this article, for each of them, we will study the probable threats of loss of funds as a result of the actions of viruses or Trojans found on the user’s device.

When storing funds on online wallets or exchanges, the main danger is the loss of access to an account on an online service. In this case, the loss of both access to the service and the email to which the account is registered will be critical.

To register for services related to finance, it is recommended to create a separate email that will not be used for personal correspondence or for registration on other sites. This will prevent it from falling into spam databases and into the hands of attackers, even when using social engineering methods.

Passwords for access to mail and finances must be sufficiently complex to make it impossible to guess them using a simple brute force method. It is good practice to change passwords periodically and avoid using saved/cached passwords; it is better to enter them manually. It is also recommended to secure your accounts as much as possible by activating the maximum number of additional security features - two-factor authentication, IP binding, etc.

Another danger of using online storage is the lack of a 100% guarantee of the reliability of the service itself. We have all repeatedly witnessed hacks, attacks by law enforcement agencies, and simply the closure of crypto wallets and exchanges without explanation, which led to partial or complete loss of client funds. Before using the services of any service that will have access to your funds for any period of time, be sure to carry out at least a basic security check of the service: study all the information provided on the site, analyze the security elements of the service, the organization’s documents, reviews of the service on the Internet, try contacting the support service..

If the user stores funds on a local wallet, then the most vulnerable place is the key file, because if it is lost, the user loses access to his finances. There can be many reasons why there is no access to a file - from simple deletion of the file by mistake or physical damage to the media, to the consequences of the actions of an encrypting virus. In order to increase the reliability of storing funds, it is necessary to regularly create a backup copy of at least the key file, and preferably the wallet. It is advisable to make several copies on different media (flash drives, CDs, etc.), and it is recommended to encrypt the archives with a fairly complex key.

Also, a file with keys, as well as its password, can be stolen using malware, which we described in our article "Safety of funds: viruses in search of wallet.dat". The most effective method of dealing with them is to install a high-quality anti-virus software package.

The safest way is to store funds on a hardware wallet because the key never leaves the device itself, and operations require physical interaction with the user, making software key theft virtually impossible.

To perform any financial transactions, it is advisable to use an isolated system: a virtual machine or a separate device (computer, smartphone, etc.), which will be disconnected from the network and turned off after the operation is completed. This system must be equipped with an active firewall and comprehensive anti-virus software with the latest, constantly updated malware signature databases. The system should be used exclusively for working with finances. Visiting any other sites, installing any software and connecting any unverified media must be strictly prohibited.

Regardless of the method of storing and maintaining crypto savings, constant vigilance is necessary. When making transfers, you must carefully check the destination address because... it can be replaced when copying via the clipboard - "Payment security: Trojans that replace the addresses of users' cryptocurrency wallets".

We hope that our recommendations will help our readers preserve their savings and ensure the safety of transactions.