How to Secure Your Crypto Wallet in 2024: 5 Expert Tips

How to Secure Your Crypto Wallet in 2024: 5 Expert Tips

In 2023, the value of stolen and hacked cryptocurrencies significantly decreased when compared to data from past years, a report by Chainalysis concluded.

Illicit revenue for crypto scamming fell by 29.2% and by 54.3% for hacking, aided by a sharp dropoff in decentralized finance (DeFi) hacking, which could signify that DeFi systems are improving their security practices.

However, cryptocurrency holders must also remain vigilant and proactive in securing their assets.

Here are some of the best ways how to protect your crypto wallet in 2024.

Key Takeaways

  • In 2023, crypto scamming fell by around 30% and crypto hacking by more than 50%. However, due to evolving scams and hacking techniques, individual users’ wallets are still at risk.
  • Choosing cold/hardware wallets offers users higher security measures through the offline storage of private keys, though they may be less user-friendly.
  • Keeping wallet software updated is vital for security.
  • Users should scrutinize transactions for potential scams like approval phishing.
  • Double-checking destination addresses, handling links cautiously, and verifying website domains can mitigate the risk of falling victim to scams.
  • Emerging trends like advanced encryption, biometric authentication, and smart contract integration are shaping the future of wallet security.

How to Secure Your Crypto Wallet: Experts Define 5 Crucial Steps

Despite an overall decline in cryptocurrency criminal activities, the ever-evolving nature of scams and hacking techniques means that the cryptocurrency wallets of individual users may still be at risk.

Adopting strong security measures, staying informed about the latest trends, and continuously monitoring wallets for any suspicious activity are some of the most crucial steps that digital asset holders must take to secure their cryptocurrency.

1. Choose a Cryptocurrency Wallet Wisely

Selecting the right cryptocurrency wallet is one of the most crucial steps to keep owned digital assets safe, Jeff Owens, the CEO and co-founder of Haven1, a Layer 1 blockchain engineered to address Web3 security and liquidity challenges, told Techopedia.

According to Owens, a cold/hardware wallet, similar to Ledger, is one of the most secure options users can opt for due to its feature of storing private keys offline. Additionally, such wallet types feature PIN protection and recovery seed phrases but could be a little more challenging for beginner investors to navigate.

However, other experts note that each wallet type tends to balance convenience and security differently, allowing users to choose the best wallet for them based on their security needs and abilities.

Anndy Lian, an inter-governmental blockchain expert, explained:

“Hardware wallets are generally considered more secure but less convenient, while software wallets offer ease of use but are more vulnerable to online threats. Paper wallets, while not susceptible to cyber-attacks, carry the risk of being physically damaged or lost.”

Lian added that users holding large sums of cryptocurrencies could consider cold storage wallets as they are not connected to the internet and are less susceptible to hacking.

2. Pay Extra Attention to Your Passwords and Private Keys

Experts note that setting up a strong password is perhaps the first step in securing users’ cryptocurrency wallets.

According to Haven1’s Owens, some of the biggest mistakes crypto holders make when securing their wallets are weak passwords and the lack of two-factor authentication (2FA).

Additionally, users must also pay extra attention to where they store their private keys.

According to Alvin Kan, the COO of Bitget Wallet, keeping private keys offline as much as possible through hardware or paper wallets prevents hackers from gaining access to them via the internet.

Kan added:

“Pay attention to password security by creating complex and unique passwords, avoiding easily guessed combinations (e.g., birthdays, sequential numbers). Regularly change your passwords and avoid using the same password across multiple platforms. Consider enabling two-factor authentication (2FA) for an added layer of security.”

3. Store Passwords Offline

The more information users store online, the easier it is for hackers to get ahold of it, which is why going back to the old-fashioned pen-and-paper days could keep digital assets held in cryptocurrency wallets safe.

Haven1’s Ownes noted:

“In general, the more information you keep offline, the more secure it will be. If you don’t like the idea of paper, encrypted digital backup held on a physical device, like a USB, is also an option.”

Bitget Wallet’s Kan added that the backup process for hardware wallets often includes managing a recovery seed phase. For heightened security measures, it is recommended that users write the recovery seed phrase on paper and store it offline.

4. Regularly Update Software

Failing to update the firmware of hardware wallets is another issue that may leave certain users more susceptible to hacking attacks.

Updates often include bug fixes and stricter security measures, making them an integral part of securing your cryptocurrency wallet.

5. Be Wary of All Transactions

According to Chainalysis’ report, while scam revenue in 2023 was down, approval phishing scams became more prominent last year. In approval phishing, scammers trick users into signing a malicious blockchain transaction that gives the scammer access to the victim’s wallet.

The report highlighted that in 2023, approval phishing scammers stole $374.6 million from cryptocurrency wallets.

Value in $ stolen through approval phishing scams May 2021 – November 2023. Source: Chainalysis 

Haven1’s Ownes noted that it is important for users to double the destinations of transactions several times before approval.

“For example, even if the first and last digits of an address look right, it could be subject to a mirroring (or “address poisoning”) scam, where scammers trick users into sending funds to a fake address that closely resembles the real one. Last month, a crypto user lost $69 million worth of wrapped Bitcoin to such a scam.”

Additionally, Bitget Wallet’s Kan said users should handle links and file downloads with extra caution and always double-check website domains to avoid phishing sites disguised as official websites.

Future of Crypto Wallet Security

Advanced encryptionbiometric authentication, and smart contract integration are some of the first steps in emerging trends that aim to protect digital assets stored in wallets.

Lian noted that integrating biometric data for user authentication provides a more secure and personalized way for users to access their wallets. Meanwhile, using smart contracts to automate security protocols reduces the risk of human error, thus further boosting security measures.

Kan explained that Bitget Wallet is already implementing some new security measures, such as MPC and AA wallets that divide private keys into multiple parts or execute transactions automatically through smart contracts in order to offer users an extra degree of security.

He added that secure multiparty computation (SMPC) is another emerging trend that works to boost the security of cryptocurrency wallets by enabling multiple parties to jointly compute a function while keeping their own inputs private.

“Within the context of encrypted wallets, SMPC can facilitate secure distributed key generation and management functions without exposing individual keys to risks,” he explained.

The development of decentralized identity solutions (DID) also strives to make the authentication process more secure by letting users verify their identity without having to expose their personal information. Integrating DID into encrypted wallets can help prevent identity theft and fraud.

The Bottom Line

Despite a recent decline in crypto crimes, securing your cryptocurrency wallet remains crucial in ensuring your digital assets’ safety. New scams and hacking techniques continuously threaten individual users.

Key steps to enhance security include choosing the right wallet type, using strong passwords, enabling two-factor authentication, keeping private keys offline, and regularly updating software.

Additionally, as the industry evolves, new advancements in crypto wallet security offer more robust ways to safeguard investments, including the emergence of biometric authentication, secure multiparty computation (SMPC), and decentralized identity solutions.

 

Source: https://www.techopedia.com/how-to-secure-your-crypto-wallet

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j

How to Prepare for Bitcoin Halving in April 2024: Expert Tips & Projections

How to Prepare for Bitcoin Halving in April 2024: Expert Tips & Projections

Bitcoin halving is the most anticipated event of the crypto industry that occurs once every four years. According to the Bitcoin halving countdown, April 18, 2024, is the date when Bitcoin is expected to mint its 840,000 block and subsequently undergo its fourth halving.

From an investor’s perspective, halvings are seen as milestone events that have ushered crypto bull markets. For miners, halvings bring challenging business conditions where miner revenues are cut by half and production costs per Bitcoin theoretically double.

In this article, we conduct an in-depth Bitcoin halving analysis, as well as provide potential post-halving price scenarios and tips for both investors and miners from industry experts on how to prepare for the fourth Bitcoin halving cycle.

Key Takeaways

  • Bitcoin is expected to undergo its fourth halving on April 18, 2024.
  • Historical charts showed Bitcoin prices took between 12 to 18 months to peak post-halving.
  • The introduction of spot BTC ETFs has created unprecedented market conditions.
  • Graeme Moore, the head of tokenization at Polymesh Association, predicted that the price of BTC could go as high as $100,000 past halving in 2024.
  • Anndy Lian, an intergovernmental blockchain expert, predicted that the BTC price post-halving has the potential to surge 10% higher than its all-time high, which currently surpasses $73,000.
  • With more funds flowing into BTC ETFs, Lian added, the BTC price could go up an additional 30% by the end of the next quarter.
  • Yuya Hasegawa, an analyst at the crypto exchange Bitbank, expected a strong rally during the latter half of this year.

How to Prepare for the Next Bitcoin Halving

Tips for Investors

The crypto market is unpredictable, but that shouldn’t keep investors from learning about historical patterns and possible outcomes to stay ahead of the curve.

Here is how investors can prepare for the Bitcoin halving event.

1. No Near-Term BTC Price Increase Guaranteed

Financial markets are forward-looking. Trades are made based on the potential of future returns. Therefore, it may come as no surprise that investors have been accumulating Bitcoin since the fourth quarter of 2023 in preparation for Bitcoin’s fourth halving, having seen BTC prices surge in past halving cycles.

As of March 13, 2024, Bitcoin prices have gained over 70% year-to-date and hit new all-time highs of over $73,000 without seeing a significant correction in the first three months of 2024.

Given the predictable and anticipated nature of halving events, you should keep in mind that rational investors are most likely to buy Bitcoins ahead of the event.

Therefore, the Bitcoin halving event does not guarantee an immediate uptick in Bitcoin prices. We could even see a sell-the-news event as euphoria around Bitcoin halving fades away.

2. Positive Long-Term Impact of Halving

Over the mid-to-long term, halving is expected to have a positive impact on the price of Bitcoin due to the reduction of BTC supply. Supporting this theory is the historical market data that showed that Bitcoin prices surged astronomically over the next 18-month period following past halving cycles.

  • According to Fidelity Asset Management, Bitcoin prices surged as much as 10,485% within 371 days after the first Bitcoin halving.
  • Following the second halving in July 2016, Bitcoin prices rose as much as 3,103% over the next 525 days.
  • Similarly, after the third halving period in May 2020, Bitcoin prices jumped as much as 707% within the next 546 days.

3. Impact of Spot BTC ETFs

The introduction of spot BTC ETFs has created unprecedented market conditions that halving cycles of the past did not encounter.

Since the spot BTC ETFs were approved on January 11, 2024, the popularity of the instrument has created a Bitcoin demand shock.

For reference, the average BTC daily demand on ETF trading days currently stands at 4500 Bitcoins surpassing an average of 921 new Bitcoins minted per day, Coinshares reported.

If the spot BTC ETF remains consistent when the supply of Bitcoins reduces by 50% post-halving, the supply-demand principles of economics tell us that Bitcoin prices might rise.

Tips for Miners

One of the biggest challenges that the BTC halving event poses for miners is the reduction in mining rewards.

Apart from the 50% cut, the halving might also increase competition, heightening mining difficulty and potentially increasing the price of transaction fees.

Yuya Hasegawa, an analyst at the crypto exchange Bitbank, told Techopedia in a note that miners often have to consider how they will manage to operate with 50% less revenue.

“This has affected Bitcoin’s hash rate and the network’s difficulty post-halving, as some of them halt operation until the difficulty drops low enough for them to make a profit again. Some others sell their Bitcoin holdings to make up for decreased cash flow.”

However, Hasegawa added that miners should also consider the release of spot BTC ETFs, which could make the situation a little different.

This is because spot BTC ETFs are buying more than they can produce almost every day, thus overwhelming the BTC supply.

“If the ETF inflow continues to overwhelm Bitcoin’s supply, which it probably will since it already is buying more than the network can produce in a day even before halving, the price may continue to rise post-halving, and that could maintain mining profitability.”

Moreover, miners should also prioritize energy efficiency as the cost of electricity is a major component of mining expenses, Anndy Lian, an intergovernmental blockchain expert and the author of NFT: From Zero to Hero, explained.

This can be done through the use of efficient hardware and access to low-cost energy sources, which can help maintain profitability post-halving.

Lian told Techopedia:

“In the past, most miners looked at standard operation costs. I hope they will do more research and stay informed about market behaviors and trends to make educated decisions regarding their operations. They should evaluate their financial health, including debt levels and capital reserves, to withstand potential revenue drops due to the halving. This would also give them a gauge on how fast they expand.”

Bitcoin Price Scenarios to Consider With Approaching BTC Halving Event

Post-Halving Bitcoin Price Action: Analyst Views

Historically, BTC halving events led to the cryptocurrency’s price increases due to the reduced supply of new Bitcoin tokens entering the market.

Lian predicted that the BTC price post-halving has the potential to surge 10% higher than its all-time high, which currently surpasses $73,000.

However, he added that post-halving and with more funds flowing into BTC ETFs, the BTC price could go up an additional 30% by the end of the next quarter.

“It’s also worth noting that predictions vary widely, and the actual outcome will depend on a multitude of factors, including market demand, investor sentiment, and broader economic conditions. Always remember that investing in cryptocurrencies carries risk, and prices can be highly volatile. It’s advisable to conduct thorough research and consider seeking advice from financial experts before making investment decisions,” Lian added.

The launch of spot BTC ETFs earlier this year was a huge success, and their demand could grow even bigger later in the year, according to Hasegawa.

He added that while the Federal Reserve is still waiting for inflation to calm down, there is a possibility they could start cutting rates, which could increase demand for both BTC and ETFs and facilitate more cash flow.

Bitbank’s Hasegawa concluded:

“Furthermore, halving will crunch Bitcoin’s supply, so we could expect that those three elements (rate cuts, ETFs, halving) will together create a strong rally sometime during the latter half of this year.”

Graeme Moore, the head of tokenization at Polymesh Association, predicted that the price of BTC could go as high as $100,000 past-halving in 2024 as the cryptocurrency is already experiencing massive heights.

“We are already seeing the effect of the upcoming halving with a 50% increase in price since February. Bitcoin is now over $72K. In addition, the relentless bid from the new Bitcoin ETFs is proving that the broader market is beginning to see the value in a global, decentralized, provably scarce asset. If the previous cycles are an indicator, the price of Bitcoin will continue to rally into the halving and after.”

Historical Bitcoin Halving Analysis

A study of historical Bitcoin halving charts showed that BTC consistently saw price increases in the weeks ahead of halving events. Following halving events, Bitcoin showed a tendency to trade within a range in the next months.

Following the second Bitcoin halving, BTC price traded range bound between $600 and $800 from July 2016 to November 2016.

Similarly, following the third Bitcoin halving cycle in May 2020, BTC traded in the $8,000-$14,000 range for the next six months before finally breaking out to scale new all-time highs.

Historical charts also showed that Bitcoin prices took between 12 months to 18 months to hit the peak price during the first three halving cycles.

Market catalysts that supported Bitcoin prices during each cycle included the European debt crisis of 2009-2012, the initial coin offering (ICO) boom of 2016, and ultra-low interest rates of the post-pandemic era.

The Bottom Line

The upcoming BTC halving is poised to impact both investors and miners. While historical data suggests a potential for long-term price increases, short-term volatility and uncertainty remain prevalent.

Investors should exercise caution, considering the unpredictability of market reactions post-halving, and conduct thorough research before making investment decisions.

Miners facing reduced rewards and heightened competition must prioritize efficiency and strategic planning to navigate the challenges ahead.

As the crypto landscape evolves with the introduction of spot BTC ETFs, staying informed and adaptable will be crucial for all stakeholders in the Bitcoin ecosystem.

Source: https://www.techopedia.com/how-to-prepare-for-bitcoin-halving

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j

Investing In Memecoins: Essential Tips On How To Find The Next 1000×

Investing In Memecoins: Essential Tips On How To Find The Next 1000×

Investing in meme coins comes with its ups and downs, even for the most seasoned investors. However, one can minimize the risks and maximize the rewards by seeking out and applying the right information. There are thousands of meme coins to select from, and most of them are scams. Therefore, you will need to be at your best in order to stand a chance in this market.

The truth is that there are diamonds among stones; you just have to know where and how to look. These special meme coins have the potential to produce 1000× for investors who caught it early. This article shall explore the risks involved in investing in meme coins, the huge potential, and some promising coins to consider.

For every investment, you have to evaluate the risks and rewards involved in that investment. Therefore, there are basically two factors to consider:

Low-Risk Investment

About 90% of new meme coins are scams, so learning how to avoid the rugpulls will help boost your expected returns.

High Potential/Reward

Having a strong and dedicated team with a long-term vision for the project rather than have a copy-paste project.

How To Avoid Rugpulls And Minimize Risk

With my experience in the crypto space and having analyzed several crypto projects, I can point out the signs of a crypto rugpull. This analysis majorly applies to tokens that are listed/launched on decentralized exchanges like Uniswap and PancakeSwap.

The initial token distribution
One of the early signs of a crypto rugpull is when the dev team allocates a big chunk of the tokens to themselves. Alternatively, they can give up 50% of the token to a crypto celebrity. This is a red flag because they can dump their huge allocation since they didn’t buy like the rest of the investors. A good crypto token has virtually all the tokens put onto a DEX for purchase by any interested party.

Who owns the liquidity pool?
An early rugpull gimmick is when developers of a token put it in a decentralized exchange and ensure they own the entire liquidity pool. This gives them the power to remove the entire liquidity pool anytime they wish, with all BNB and ETH tokens inside it. Always check for the top liquidity providers for new projects. For security purposes, most of the liquidity pool should be held by the burn address.

High transaction fees
When you find out that there are high transaction fees for the transfer of tokens and that these fees are not transparent, it is a sign you need to back out. Always conduct quality research to know and understand the fees beforehand. A high transaction fee is also another tactic to discourage people from selling the tokens.

Maximizing Meme Coin Investment

Remember that we have two goals while investing in meme coins; to reduce risk and maximize returns. Here are the tips on how you can identify the next 1000× meme coin out there:

Does the project have a long-term focus?
Before investing in any meme coin, take out time to explore the token’s community to know what the developers focus on. Do they have a long-term agenda of building a strong community and long-term growth? Are they more interested in trying to pump the price and pressure people into buying? The former is a good thing, while the latter is a red flag. It would help if you also found out whether there is a whitepaper for the project highlighting its real vision and mission.

What is the reputation and track record of the dev team?
Is the team behind the project trustworthy, or are they just filled with empty promises? When they say they are going to get something done, do they follow through to get it done? Are they only making promises just to pump the price? When you find the answers to these questions, they will help you know the future potential of the token. When the development team is not trustworthy, then they have no intention of building for the long term.

Does the token have real meme potential?
In today’s reality, cute tokens easily win market share since most people love to buy adorable and beautiful tokens. A good example of people’s love for the adorable meme is how the Doge community has grown over the last few months.

Promising Meme Coins To Invest In

Following the above analysis, here are a few promising meme coins that investors should consider.

MiniDoge
MiniDoge is the first auto-boost and hyper-deflationary meme coin in the crypto market.

CorgiCoin
CorgiCoin is the Binance Smart Chain (BSC), and it is completely community-owned.

BabyDoge
BabyDoge is a deflationary token created by the fans of the DogeCoin community as an upgrade of Dogecoin itself.

CateCoin
CateCoin is a payment meme coin used to pay meme creators for creating memes on meme platforms.

1000X is just a dream to many, it has a lot of risks that come with it. You need to study the project properly from its team members to their tokenomics. You have to ask them where are their revenue streams too. Lastly, look carefully where they are listed. Some exchanges are safer, more reputable than others. Always do your own research.” Anndy Lian, Chairman for BigONE Asia and Chief Digital Advisor for Mongolian Productivity Organisation commented.

Disclaimer: The information contained on this article is provided for educational purposes, and does not constitute investment advice.

Source: https://www.benzinga.com/markets/cryptocurrency/21/08/22326671/investing-in-memecoins-essential-tips-on-how-to-find-the-next-1000

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j