Crypto wallets are the only way for you to store your digital currencies safely. Without them, it wouldn’t be possible to send, receive, or even store cryptocurrencies. And this is why they are so important.
The best crypto wallets for desktop support a large selection of coins and is easy to use. Besides that, it should also be secure and come with a host of other features such as built in-exchanges or cold storage integration. Finally, it ideally should be hosted by a trustworthy wallet service provider.
Unfortunately, the runway popularity experienced by tokens such as Bitcoin, Ethereum, and other cryptocurrencies have turned wallets into a popular target for cybercriminals and hackers. As a result, hackers have stolen billions in 2022 alone, and this number is continually rising.
But before we go into the details, let’s take a look at:
What Types of Desktop Crypto Wallets Are There?
Simply put, a desktop crypto wallet refers to software or a device that stores your tokens in a secure environment. Desktop crypto wallets may sometimes refer to hot wallets that are accessible via your PC’s web browser, or a web browser plugin. These types of wallet are the most ubiquitous and are free-to-use.
Another type of crypto wallet available is the cold wallet. Cold wallets are hardware storage devices that store your crypto keys offline. Doing so prevents hackers from gaining access to them via your internet connection.
For this reason, cold wallets are often used to store large quantities of cryptocurrencies. As an added plus, these wallets can be physically secured in a safe or strong box for added protection. But there is always the inherent risk that the device may be stolen, get damaged, or simply lost.
Because of this, it is important for you to create multiple backups stored in separate locations. So this allows you to regain access to your assets in the event of a disaster. Do keep in mind that there have been cases of people getting locked out from their own wallets.
Is it Possible to Hack a Desktop Crypto Wallet
The answer is a strong yes. Hackers have been doing this for years through a variety of methods. And some of the most common methods are:
These happen when cybercriminals use a combination of trickery or social engineering to access your crypto wallet. They may sometimes pose as a member of the wallet’s customer service or some other authority figure. Remember: never reveal personal information such as your password to anyone.
In other cases, you may end up being cheated by frauds who create fake crypto wallets. These work by attempting to trick users into depositing funds into a fake wallet. Once they’ve received the money, the wallet suddenly vanishes overnight.
Hacks can range from brute force attacks to access your account or malware. In many cases, the hackers who manage to access your wallet will drain it of all funds and disappear. Oftentimes, the victim has no idea what’s going on until it’s too late.
Besides individual wallets, hackers also target the crypto wallets themselves. After accessing the wallet’s network, the hackers siphon out large quantities of crypto before disappearing. In many cases, the authorities usually cannot do anything to help the victims.
3. Using stolen data.
Making use of stolen data is another common way for hackers to steal/hack your crypto wallet. They do this by gaining access to your private data via phishing or man-in-the-middle attacks. Once they’ve obtained your personal data, all that’s left is to access your wallet and bank accounts.
And so there you have it, the list of ways in which hackers can gain access to your crypto wallet. While you can mitigate some of these risks by investing in a cold wallet and practicing good security hygiene, the danger is still present. This is why I recommend that you continually stay updated with the latest developments in cybersecurity and remain alert at all times.