You shouldn’t be surprised that your wallet is vulnerable to cyber-attacks even while you have your assets in a cold wallet. There are various means your wallet could be attacked. However, it is worth noting that major hacks happen on exchange platforms, but they could also happen with cold wallets. If the wallet holds a reasonable amount of cryptocurrency, it might become susceptible to attacks.
The crypto community is 100% decentralized, and as such, every transaction is recorded on the blockchain. With this, transparency is unmatched, as every asset in every wallet is visible to everybody with the wallet address. So, if you believe that your wallet cannot be hacked, it can. However, it is important to note that even while your wallet is vulnerable to attacks, there are still various ways in which you can adopt to recover blockchain wallets with ease.
So, one way to stand above any form of attack, even when vulnerability seems inevitable, is by having crypto recovery services ready. These services help you keep your account safe and ensure you have any form of misconduct on the account; your assets can be moved to a more restricted account where it’s much safer.
If you still think your wallet can’t be attacked, take note of the below to understand how your wallet can be vulnerable to attacks.
Sharing Your Mnemonic Seed Phrases
When it comes to cryptocurrency and keeping your assets safe, you should be the only one with access to your seed phrase. This is because, unlike on exchange platforms where you get to input your email and password or have the opportunity to reset passwords, it’s different with cold wallets.
Sharing your seed phrase is one way to put your wallet at risk of being hacked. Once you lose your seed phrases or have them reshuffled, it becomes impossible for you to log into your account successfully. So, always make sure that your seed phrases are kept safe. If you were writing it down, be sure not to have it duplicated more than once. The more duplicates of the seed phrases, the higher the vulnerability to attacks.
Login in on Various Devices
Here’s another means of putting your assets at risk. It would help if you had a separate gadget that holds your crypto assets. Once you begin to log in to your wallet on multiple devices, the rate at which it can get attacked will increase. So, ensure you always have a different gadget to hold your assets.
Depending on how much premium you place on your assets, your assets could be on a separate hard drive, preferably on your desktop computer stationed at home. The probability of recovering blockchain wallets logged on a single device is higher than those logged on multiple devices. Hence, you should ensure that you take notes, or else you could lose your assets in a blink of an eye.
Having All of Your Assets in a Single Cold Wallet
One of the main reasons most institutional investors have their assets across multiple wallets is that having them in a single wallet will highlight the wallet as one of the few wallets with huge assets. The moment the wallet address is highlighted, it becomes prone to attacks. So, ensure you have your assets shared amongst at least three cold wallets.
Although sharing assets is primarily for those with large portfolios, you can also take note of this, as it’s one of those few ways your cold wallet can be vulnerable to attacks. Having all the eggs in one basket is not always the best choice, as anything could happen to the basket at any point in time. Since there are no linkages between two different cold wallets, all of your wallets can’t be attacked at once, assuming you alone know these wallets’ addresses.
It’s never a hard task to recover blockchain wallets if you’ve had the blockchain recovery service enabled. All you need to do is to make sure your wallet is backed up by recovery services that are reliable and effective. Once this is done, it becomes less stressful to worry about your assets being vulnerable to attacks.
However, most crypto recovery services are not as expensive as most individuals envisioned. Even if you don’t have an “expensive” portfolio, you should always prepare. It’s never a wrong idea to have a crypto recovery service at your disposal. The more recovery services you have, the higher your chances of keeping your assets safe.