Here’s a New Year Resolution For You: 5 Best Ways to Protect Your Crypto

Dec 19, 2022

In the first 10 months of 2022, cyber criminals stole a staggering amount of 3 billion dollars from crypto wallets and exchanges. This is not only a new negative record, but it also emphasizes the need for more learning regarding the security of crypto assets.

The recent attacks against crypto investors may have left you wondering what you can do to improve your digital security. Is it a good idea to keep crypto on an exchange, and what should you watch out for? Should you save a screenshot of your password in case you forget it? In the following blog post, we will answer all these questions and more. Additionally, we will show you how to avoid falling victim to crypto fraud.

Use a strong password to protect your crypto

One of the most important steps that you can take to protect your cryptocurrency is to use a strong and unique password. A strong password is essential for preventing unauthorized access to your accounts and protecting your assets from hackers and other malicious actors.

A strong password should be at least 8 characters long and include a mix of upper and lowercase letters, numbers, and special characters. Avoid using easily guessable passwords, such as your name, date of birth, or simple patterns, as these can be easily cracked by hackers.

It is also important to use a unique password for each of your accounts. If you use the same password for multiple accounts, a hacker who gains access to one of your accounts can potentially use the same password to gain access to your other accounts.

A password manager can be a useful tool for generating and storing strong, unique passwords. It allows you to create a different, random password for each of your accounts, and stores them securely for you. This can help to prevent you from using the same password for multiple accounts and make it easier to manage your passwords.

Pro Tip: You can check the strength of your password using this security tool.

Use an authenticator app (2FA)

The first time you buy cryptocurrency, it's usually on an exchange. A hacker who gets access to this account can withdraw your crypto to their own wallet address.The best way to thwart these attacks is to turn on two-factor authentication (2FA) in your exchange app for withdrawals.

An authenticator app is a security tool that allows you to add another layer of protection to your accounts. Authenticator apps generate one-time codes that you can use to verify your identity when logging in to your accounts. This can help to prevent unauthorized access to your accounts, even if your password is compromised.

To use an authenticator app, you will need to install the app on your smartphone or other device. Most authenticator apps are available for free from the App Store or Google Play. Once you have installed the app, you will need to set it up with the accounts that you want to protect.

To set up an authenticator app with an account, you will typically need to follow these steps:

  1. Log in to the account that you want to protect.
  2. Go to the account's security settings and look for the option to enable two-factor authentication (2FA).
  3. Follow the instructions to set up 2FA with your authenticator app. This may involve scanning a QR code or entering a secret key provided by the account.
  4. Once 2FA is enabled, you will be prompted to enter a one-time code from your authenticator app when logging in to the account.

One important thing to keep in mind when using an authenticator app is to keep a backup of your account recovery codes. These codes are provided by the account when you set up 2FA, and they can be used to access your account if you lose access to your authenticator app. Make sure to store your recovery codes in a safe and secure place, such as a password manager or a physical copy in a secure location.

Overall, using an authenticator app is a simple and effective way to add an extra layer of security to your accounts and protect your cryptocurrency from unauthorized access. Be sure to set up 2FA with your authenticator app on all of your accounts that support it, and keep a backup of your recovery codes in case of any issues. If you have lost access to your device and want to reset the code on our platform, follow these steps here.

Back up your seed phrase properly

It is essential to securely back up and store your crypto seed phrase, as it provides you with exclusive access to your wallet and its funds. A crypto seed phrase is a randomly generated set of words used to restore the private key to your wallet in the event of device theft, damage, or loss. Without the seed phrase, you will be unable to access your wallet and its funds.

That's why it is important to make sure you back up and store your crypto seed phrase in a secure place. Ideally, this should be an offline location that cannot be easily accessed by anyone else - such as a safe, safety deposit box, or secure physical storage device like a Ledger. It is also important to make sure that you keep your seed phrase safe and secure at all times. This can be done by encrypting the backup file or simply storing it in a secure location.

In addition, it is also important to make sure your seed phrase is written down on a piece of paper or other medium that cannot be easily destroyed or misplaced. This is to ensure that you are able to recover your wallet if the need arises. By taking the necessary steps to back up and store your crypto seed phrase properly, you can ensure that your cryptocurrency is safe and that you have peace of mind knowing that your assets are protected.

Pro Tip: It's important to enter your seed words in the exact order in which they were originally displayed when recovering a cryptocurrency wallet. Make sure not to rearrange the order of the words when writing them down, as this could prevent you from successfully recovering your wallet.

Check the URL and avoid fake software / apps

Crypto scams are becoming increasingly sophisticated, and crypto users need to be extra cautious to avoid falling victim by checking the URL of any website before entering any personal or financial information.

Scammers often use imposter websites that look identical to original websites, with the only difference being a single letter in the URL. By closely examining URLs, users can ensure they are accessing a legitimate website rather than a phishing site. It is also important to pay attention to the page’s security indicators, such as an ‘SSL Certificate’, which is an encrypted technology that provides secure communication on the web.

Another tip to avoid falling victim to crypto scams is to perform research on the company or website before engaging in any transactions or activities. It is essential to read reviews, study customer feedback, and do your own due diligence before conducting financial transactions online.

Avoid Public Wi-Fi and use a VPN service

When it comes to cryptocurrency transactions, it's important to be cautious about where you access the internet. While free public Wi-Fi at a coffee shop or restaurant may seem convenient, it's important to be aware that other people nearby may be able to intercept your internet traffic using tools like Wireshark. This means that they can potentially see which websites you are visiting, including cryptocurrency exchanges or other crypto-related sites.

While this doesn't necessarily mean that your crypto is at risk of being stolen, it could attract the attention of scammers, who may be more likely to target you if they see you making high-value crypto transactions or simply browsing crypto sites. To avoid this kind of unwanted attention, it's best to avoid using open public Wi-Fi for crypto transactions.One way to protect yourself when accessing the internet for crypto transactions is to use a virtual private network (VPN) service. A VPN encrypts your internet traffic, making it much more difficult for anyone to intercept and view your online activities. This can provide an extra layer of security for your crypto transactions and help keep you safe from scammers. These services typically cost between $5 and $15 per month, but you may be able to get a lower rate by paying for multiple months or years in advance.

Pro Tip: Here is a list of well rated VPN service providers.

If you're someone who feels uncomfortable holding your own keys or keeping up with the latest security measures, Cake DeFi is the perfect solution for you. With its unique security features and cash flow capabilities, you can rest assured knowing that your assets are safe and easily accessible. So why wait? Join the Cake DeFi community today and take control of your financial future!


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