February 8, 2024

Crypto Wallets & Security: Are your Assets truly Secure?

In the ever-expanding universe of cryptocurrency, the buzz around DeFi brings excitement and caution.

Have you heard about December 14th, 2023's cold wallet exploit?

Yeah, the Ledger's!

So, a hacker exploited a vulnerability in Ledger Connect Kit - the one used by various Dapps for Ledger wallet integration. The entire Dapp ecosystem went under risk, with multiple victims drained of $650,000 in assets.

Instances like these bring us to the question - Is your crypto wallet truly secure, or are you exposed to malicious threats?

The Security of Digital Wallets

In the decentralization era, with digitalization skyrocketing, digital wallets are our fundamental way to enter the web3 realm.

These digital wallets provide us access to -

  • Global payments
  • Contactless payments
  • Encrypted security
  • Dapp accessibility
  • Quicker transactions

Traditionally, Metamask has been a favored hot wallet. At the same time, Ledger stood as the primary cold wallet choice until the recent hack occurred, prompting a reconsideration of choices and leaving users uncertain.

Whether you have your assets in a smart wallet or an Externally Owned Accounts (EOA - accounts created by leveraging the concepts of private keys and seed phrase), a hard wallet or a cold, you are at risk of various attacks and hacks like phishing scams, malicious acts, DDoS attacks, and more.

How to Secure Your Digital Wallet - Best Practices

  • Carefully choose the type of wallets: There are a variety of wallet applications to choose from, all with their own merits and demerits. These applications may offer Smart wallets, EOAs, multi-sig wallets, or MPC wallets. The later 2 require meeting the minimum threshold for signatures to complete a transaction. Even during malicious attempts, the minimum signature threshold must be met for transferring assets, reducing the exploitation risks.
  • Avoid Public Wi-Fi: Secure your internet connection always when online. Public Wi-Fi poses security risks and thus should be avoided. A VPN should be considered for added protection against potential threats, as it hides your IP address and prevents DNS leaks.
  • Beware of Phishing: Phishing attacks are becoming more common. Be cautious against deceptive links, especially on Twitter or Discord. Avoid clicking on suspicious links and also be cautious of access requests, even from sources seeming legitimate.
  • Use Strong Passwords: Strengthen wallet security with a more robust and unpredictable password. Avoid using personal information and instead choose a combination of random alphanumeric characters to make it challenging to guess.
  • Secure seed phrase properly: Don't forget to store seed phrases securely, preferably by writing them down on paper and keeping it in a secure location rather than saving them online or over the cloud.
  • Diversify Your Investment: Just as you wouldn't keep all your physical money in one wallet, diversify your digital assets across multiple wallets. This enhances security and mitigates the risk of losing all funds if one wallet is compromised.
  • Keep Software Up to Date: Regularly update your wallet software to receive stability and security fixes. This also applies to all other Software on your device to maintain a secure wallet environment.

Ledger Safe-check

Recent Ledger hack targeted specific dApps (Zapper, SushiSwap, Phantom, Balancer, and Revoke.cash) and stablecoins. And if you used Ledger with these dApps, particularly between December 13th and 15th, 2023, you may be at risk.

For Ledger users concerned about asset security, follow these tips:

  • Immediately update Ledger firmware
  • Avoid clicking on suspicious links or downloading unauthorized files
  • Exercise caution when interacting with Dapps
  • Use a stronger password and enable two-factor authentication
  • Safely store your recovery phrase in a secure location.

Conclusion

In a realm where the safety of digital assets is paramount, implementing these security measures becomes the cornerstone of a robust defense against potential threats. As the crypto space evolves, staying informed and proactive is critical to ensuring your assets remain safe.

PlutoPe Wallet stands high, battling through these challenges, offering enhanced security for assets and transactions. Check out now and experience global payments, contactless transactions, and encrypted security with PlutoPe.

February 8, 2024
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