Can Cryptocurrency Wallets be Hacked

Cryptocurrency wallets operate similarly to a Bank account. Just like how a Bank account stores fiat currencies, cryptocurrency wallets are used to store all types of digital currencies. Operated with a base technology known as “Blockchain”, it works with a protection program known as “Cryptography.”

What is Cryptography, you may ask?

It is an advanced mathematical algorithm that protects its data by distributing details of transactions on nodes of all servers in the Cryptocurrency world. It is much easier to hack and manipulate data stored in a file rather than one stored in pieces across a vast room. cryptocurrency wallets work with two main keys; the public key and the private key. The public key is also known as the wallet address, this is similar to a bank account number, but it contains alphanumeric codes instead. The public key can be given out at will without causing harm to your wallet. 

The private key is the most crucial part of any cryptocurrency wallet and should be protected judiciously. The private key is a wallet link to the blockchain and contains all information of transactions of the wallet. Access to your private key gives way for hackers to manipulate your wallet. The private key is more like a secure code meant to be known by only the user of the account, and it is not expected to be given out. With the protection technology blockchain works with, it is almost impossible to hack a cryptocurrency wallet.

The next question most users have in mind is, “Can my cryptocurrency wallet be hacked?” To put it simply, the answer is Yes, your cryptocurrency wallet can be hacked.

Most times, hacking a cryptocurrency wallet results from the user’s negligence, but sometimes it is as a result of just connecting your wallet to the internet. 

TYPES OF CRYPTOCURRENCY WALLETS

There are five main types of cryptocurrency wallets, each presenting its own strengths and weaknesses. (For the complete list of cryptocurrency wallet types, you may want to read How Crypto Wallet Works.)

• Online wallet: This wallet runs on the cloud and can, therefore, be accessed on multiple devices. Its ability to be used in various devices is its greatest strength. Unfortunately, this is also the reason for its greatest weakness as its more susceptible to hacks. As such, extra security is required for the protection of the wallet.

• Hardware wallet: Hardware wallet keeps users private key on a USB. This is one of the safest wallets as it is offline most of the time and will only be connected if plugged into a system. This type of wallet is expensive; which is the weakness it possesses.

• Mobile wallet: The mobile wallet is an application downloaded on the phone. Its strength lies in its mobility and ease of use, allowing payments to be made in just a few seconds. In the case of phone hacks or loss, your wallet might be at risk.

• Desktop wallet: Similar to the mobile wallet, it is a wallet installed on a desktop or PC. Aside from its dependency on your desktop or PC, it can also be risky if your system gets infected or hacked.

• Paper wallet: Also known as the “cold storage”, a paper wallet is the most secure type of wallet. It is a physical reference to a public and private key, sometimes in a sheet of paper. Its advantages over the other wallets is its non-reliance on the internet, which eliminates the risk of being hacked.

HOW CRYPTOCURRENCY WALLETS CAN BE HACKED

The cryptocurrency wallet is undoubtedly the most secure wallet in the world. However, it does have its shortfall. To best safeguard your digital assets, it is highly recommended that you avoid:

Downloading of insecure applications on Appstore

Giving out your wallets private key 

Using vulnerable browser extensions

Connection to an insecure Wi-Fi

Registration to cloned websites 

Opening suspicious Emails (also known as) email phishing 

NEED A SECURE CRYPTOCURRENCY WALLET?

Introducing LinqCash. LinqCash is a Payment Gateway Wallet, it offers a user-friendly interface that is easy to use even for beginners.  Its secure data encryption method ensures your data remains private. On top of the positive reviews online, LinqCash provides a competitive rate for cryptocurrency transactions. So, how do you get started using LinqCash? 

• Sign up at LinqCash so you can be assigned a cryptocurrency Wallet
• Once done, just transfer your Bitcoin to your LinqCash wallet address

In conclusion, for a fast, effective, and secure cryptocurrency transaction, sign with LinqCash and experience fast and secure cryptocurrency transactions today!

Disclaimer: The blog content above does not constitute financial advice in any way whatsoever. Nothing published by LinqCash constitutes an investment recommendation, nor should any data or Content published by LinqCash be relied upon for any investment activities.

LinqCash strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.