How to ensure the security of virtual currency wallets?

Secure your crypto assets by using hardware wallets for large sums, strong passwords, 2FA, and regularly updating software. Never share your seed phrase or private keys.

Feb 28, 2025 at 11:18 am

• Cold wallets, such as the Ledger Nano X and Trezor Model T, and paper wallets, are almost immune to cyber attacks because they store private keys offline, and are suitable for large-scale and long-term asset storage. However, paper wallets are vulnerable and hardware wallets are at risk of loss.

• Hot wallets, such as MetaMask and Trust Wallet, are easy to use in the Internet and are suitable for daily small transactions. However, it is prone to hacking, such as malicious links and phishing emails, may cause them to be "hit".

• A single sign-in wallet is easy to use, but the security depends entirely on the user. Multiple signing wallets require multiple signatures to trade, which is suitable for teams or institutions, and reduces the risk of single-person operation, but the transaction efficiency is low.

• Single-chain wallets focus on specific ecology and have excellent transaction experience, but are inconvenient to cross-chain. Multi-chain wallets support multiple public chains, and manage multiple ecological assets efficiently, but the operation has certain learning costs.

• Private keys are the key to controlling digital assets. Just like bank card passwords, if lost or leaked, the assets are dangerous. The mnemonic word is the "translated version" of the private key, which is convenient for memory and backup.

• Never take screenshots to save private keys or mnemonics. If the device is hacked, the security of the asset will be seriously threatened.

• It is more reliable to use paper backup. Handwritten mnemonic words on paper and store them in a safe place that is waterproof and fire-proof. Do not record them with network tools.

• The mnemonic words can be separated into several parts and stored in different places, such as part of them at home and the other part is handed over to trusted family members for safekeeping.

• Always be alert to phishing websites and malware, and formal platforms will never require users to enter mnemonic words directly.

• When setting passwords, use upper and lower case letters, numbers, and special characters combinations, with a length of at least 12 digits, so as to avoid easy-to-guess information such as birthdays and names. Strong passwords can also be generated and stored with the help of password management tools.

• Turn on two-factor verification (2FA). In addition to passwords, it adds verification methods such as mobile phone verification code, fingerprint recognition, and facial recognition. Even if the password is leaked, it will be difficult for hackers to log in. Trust Wallet provides a variety of authentication options.

• The wallet software will continue to release security updates and patches to fix potential vulnerabilities. Be sure to update the wallet software and related programs in a timely manner.

• Password managers and operating systems also need to be updated regularly to prevent known vulnerabilities from being exploited by hackers.

• Avoid accessing wallets under public Wi-Fi networks, such networks are unsafe and data is easily stolen. If necessary, encrypt the connection via VPN.

• Be vigilant about links in emails and text messages and do not click at will to prevent entering phishing websites. Try to manually enter the official website address to log in to your wallet.

• Back up wallet data regularly to prevent equipment failure, loss or stolen, and assets cannot be retrieved. Many wallets support mnemonic backup. The mnemonic generated when creating a wallet for the first time must be kept properly.

• You can store backups in different safe locations, such as home safes, bank safes, etc.

• Hot wallets often require authorization of transactions. When operating, you must carefully confirm the authorization object and permissions to avoid leaving authorization loopholes.

• Resolutely refuse to request wallet authorization for applications or websites of unknown origin to prevent assets from being stolen.

• When purchasing a new hardware wallet, first make sure that the packaging is intact and unopened to prevent the purchase of equipment that has been tampered with.

• Set up complex device passwords to avoid being easily cracked by others.

• Regularly update hardware wallet firmware to fix security vulnerabilities and improve security.

• During transactions, carefully check the transaction information to ensure accuracy and then sign and confirm.

• Check the URL carefully. The regular wallet URL begins with "https", pay attention to the spelling, and prevent entry into the forged website.

• Check the web security certificate information to confirm that the website is trusted.

• Don’t click on links of unknown origin at will, especially those seemingly attractive false rewards and discount links.

• Install a secure browser extension to help identify phishing sites.

• If you use a multi-signment wallet, set the number and rules of signing according to your needs. For example, 2 people can agree to the transfer of money in a 3-person account.

• Members participating in multi-signature must properly keep their own private keys to ensure the security of the private keys.

• Maintain good communication among members, prompt transaction confirmation to avoid process delays.

• Regularly check the wallet transaction history to check for abnormal transactions, and take immediate action if found.

• Follow the official information of the wallet provider to see if there are any security vulnerabilities or risk warnings.

• Re-check the wallet security settings, such as password strength, identity verification method, etc., to ensure that the settings are valid.

• Continue to learn virtual currency wallet security knowledge, pay attention to industry dynamics and security incidents, and understand new security risks and prevention methods.

• Do not disclose wallet-related information to others at will, including private keys, mnemonic words, transaction records, etc.

• Be cautious in participating in various virtual currency activities, be vigilant against high-yield temptations, and avoid falling into the fraud trap.