But Miami’s growing crypto scene comes with a significant risk: the dangers of holding digital assets.
On Tuesday, police arrested a Miami man, accused of torturing a crypto trader and holding him hostage for weeks to gain access to his Bitcoin wallet, in New York City. William Duplessie, 33, is one of two suspects who reportedly held the man captive in a Manhattan townhouse for nearly three weeks.
While your crypto is theoretically safe from hackers, online sleuths, and con-men when properly stored, criminals can swiftly steal your crypto with a "wrench attack" (read: a repeated wrench to the head until you give up your precious passwords).
If you hold cryptocurrency, it's crucial to take proactive steps to protect your assets — from both virtual and physical threats. Here are five essential tips for safely storing your crypto:
1. Keep Your Crypto Private
One of the most important ways to protect your cryptocurrency is to keep it private. Don’t discuss your crypto holdings with others, whether in person or online. The goal is not to attract unwanted attention, whether from hackers or, as in Duplessie's case, criminals seeking to steal your wealth.2. Use a Hardware Wallet
Hardware wallets like Ledger and Trezor are some of the safest ways to store cryptocurrency. These devices store your private keys offline, making them immune to online hacks. Unlike software wallets connected to the internet, hardware wallets allow you to store your crypto securely, away from potential cyber threats.The wallets, however, come with a 24-word seed code that opportunists can use to steal your funds, even without the hardware wallet. Some users mistakenly believe the hardware wallets protect them against theft, but the 24-word seed code is the most important thing to guard. Place the printed code into a safety deposit box for secure storage. NEVER store this code digitally or online.
3. Enable Two-Factor Authentication (2FA)
Two-factor authentication (think Coinbase or Kraken) adds an extra layer of security to your online crypto. Even if someone obtains your password, they cannot access your account without the second factor.Do not, however, use 2FA SMS. Bad actors have pretended to be ones with the crypto wallets and convinced phone carriers to port the actual holder's phone number to a device they control (essentially a SIM swapping scam) and receive the 2FA SMS texts themselves.
The scheme might sound convoluted, but it's just another day for a hacker. So do yourself a favor and use a 2FA.
4. Be Cautious with Public Wi-Fi
Public Wi-Fi networks are unsecured and, therefore, easily hacked. Never access your crypto wallet or make transactions when connected to public Wi-Fi, as it increases the chances of someone intercepting your data.If you need to access your crypto accounts on a public network, use a VPN (virtual private network) to secure your connection.
