This is How You Protect Crypto in Your Wallet, According to Expert Mark Venables

Sead Fadilpašić
Last updated: | 3 min read
Source: AdobeStock / 3dsculptor

In an interview with Cryptonews, Mark Venables – an expert in crypto wallets and the founder of The Crypto Merchant – discussed the best practices to keep money safe in our crypto wallets, if and how often we should move our funds to another wallet, vulnerabilities of old and ‘aging’ wallets, how newer wallets improve safety, and what awaits us by the end of this decade in the digital pouch realm.

This is what he had to say.

Be Proactive

Venables argued that the cryptocurrency ecosystem security is an ongoing concern. He warned that there “are various vulnerabilities that users and developers should be aware of.”

These include, but are not limited to, well-known phishing attacks, malware and key loggers, social engineering attacks, centralized exchange risks, and smart contract vulnerabilities.

Not all wallet users are the same, Venables suggested. Instead, he said,

“Users should tailor their security practices based on their specific needs and the type of wallet they are using.”

Therefore, an absolute must in safeguarding one’s cryptoassets, he stressed, is adopting a proactive approach to security.

Users can’t put funds into a wallet and forget about it. Scammers are certainly not forgetting about your money and are constantly developing ways to get to it.

While tailoring safety practices is needed, there are also great general rules to follow.

It is essential that each person regularly updates security practices and makes sure that they are informed about both the current and emerging threats.

As a matter of fact, Venables says,

“Education and awareness around potential risks and scams play a vital role in safeguarding digital assets.”

Don’t experiment with services either – triple-check that they are reputable.

Lastly, it is always good to follow general cybersecurity principles, including:

  • implementing and maintaining strong passwords,
  • enabling two-factor authentication (2FA),
  • having secure backup and recovery,
  • using robust antivirus software,
  • regularly updating wallet and software versions,
  • implementing encryption measures,
  • keep cautious of phishing attempts.

All this may feel daunting, especially to newcomers, but it’s all vital in helping you keep your funds.

Also worth noting, veteran users, while more experienced, are not immune to mistakes and/or scams.

Frequent Transfers to New Wallets Introduce Risk

Yes, users should occasionally move their money to a different wallet, but how often is not an easy question to answer.

Changing wallets too often may actually be detrimental.

Per the expert,

“While occasional wallet migrations for security reasons are sensible, frequent transfers can also introduce risks, such as potential mistakes during the process or increased exposure to transaction fees.”

The frequency depends on several factors, Venables says. There is no one-size-fits-all answer.

These factors include the security of the current wallet, changes in wallet technology, lost or compromised private keys, inactive or abandoned wallets, and transition to newer tech.

The conclusion seems to be that once the above security steps have been followed, users should “carefully balance the need for security with the practicality and convenience of managing their funds.”

Older Wallets Are Vulnerable, Newer Ones Are Not Foolproof

The technology underpinning the wallet industry is evolving.

By the end of this decade, Venables said, we can expect several exciting advancements and trends in the new generation of crypto wallets.

These include enhanced security, improved user experience, cross-chain compatibility, refi integration, mobile dominance, decentralized wallets, improved recovery options, and the integration of new technologies as they emerge.

In the meantime, there is the issue of the older wallets.

These digital purses can be at risk due to outdated software, weak encryption and key management, lack of 2FA – and even discontinued support.

All this makes them more susceptible to social engineering attacks.

Newer wallets do provide significant improvements in security as they aim to address the vulnerabilities and shortcomings of older wallets. However, “no system can claim to be completely foolproof or immune to all risks,” Venables warned.

Additionally, there are still potential areas that remain unaddressed or pose ongoing challenges. These include:

  • user responsibility,
  • centralized exchanges,
  • human error,
  • emerging vulnerabilities,
  • supply chain attacks,
  • regulatory changes.

The Crypto Merchant was founded in 2017 in the US by early crypto adopters, coders, miners, and investors who, as the website states, have “spent an unreasonable amount of time seeking out only the most secure products for your cryptoassets, so that you can buy and invest with confidence.”

The company offers various hardware wallets from several wallet makers, including Trezor, Ledger, Blockstream, KeepKey, and more, as well as bundle deals.

Therefore, another good safety measure is to get a hardware wallet, preferably via The Crypto Merchant, Venables concluded.

Learn more: Bitcoin Wallets Created Before 2016 May Be Vulnerable – Billions at Risk?