Crypto Wallets & Security: Are your assets truly secure?
Tags: beginners, discuss, security, blockchain
Published: 2023-12-17 09:02:13

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 Contract Kit - the one used by various Dapps for Ledger wallet integration. The entire Dapp ecosystem went under risk, with multiple victims drained of a total 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 EOA, 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
**1. Use MPCs or Multi-sig Wallets:** Consider MPC or Multisig Wallets, as they require multiple transaction signatures. Even during such malicious attempts, the minimum signature threshold must be met for transferring assets, reducing the exploitation risk.
**2. Avoid Public Wi-Fi:** Secure your internet connection always when online. Public Wi-Fi poses security risks and thus should be avoided, and a VPN should be considered for added protection against potential threats, as it hides your IP address and prevents DNS leaks.
**3. 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.
**4. 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.
**5. 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 online or over cloud. 
**6. 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.
**7. Implement 2FA:** Different wallets may have varying 2FA methods; opting for them adds an extra login step, thus adding a barrier against potential risks. 
**8. Backup & Encrypt Your Wallet:** Keeping a backup of your wallet protects against computer failures and aids recovery in case of theft or loss. Additionally, encrypting your wallet or smartphone adds an extra layer of protection. Setting a password for fund withdrawals can protect against thieves.
**9. 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 - recently updated on December 14th to address the hack.
- 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.