How to Secure Your Crypto Wallet App from Hacks

If you think your crypto wallet is safe just because it’s on your phone, well, you need to think about it again!

In 2024, almost $2.2 billion was stolen from crypto platforms alone. It’s an almost 21% year-over-year increase, which highlights how real and urgent the threat has become.

Hackers are increasing day by day. They target mobile wallets, crypto exchange platforms, and even individual users. One single ignorance or a cleverly disguised phishing message can lead to unimaginable loss.

No matter whether you are just holding a few crypto tokens or are managing a digital portfolio, it is important to secure a crypto wallet app.

Do you know what the good news is? You don’t need to be a cybersecurity expert to protect your crypto assets. You just need to be informed in advance. That’s what this blog is all for!

Let’s talk about how to protect a crypto wallet from hacks!

Understanding the Risks

Before we get into the details of how to prevent crypto wallet hacks, it is important to understand the threats that put your assets at risk. Here are some of the most common risks you should be aware of:

• Phishing Attacks

Fake apps, websites, and emails are designed to trick users into revealing their wallet credentials, seed phrases or mnemonic phrases (recovery phrases). These attacks can lead to instant asset loss.

• Malware & Keyloggers

Hackers can use malicious software to record your keystrokes, take screenshots, or gain remote access to your device. All this is aimed at stealing your wallet information.

• Fake Wallet Apps

Cybercriminals regularly upload counterfeit wallet apps to app stores. These apps often replicate the genuine ones and steal user information once downloaded.

• SIM Swapping

Attackers hijack your phone number via your mobile provider. This allows them to bypass crypto wallet 2FA authentication and access your wallet or exchange accounts.

• Insecure Wi-Fi Networks

Using public or unprotected Wi-Fi can expose your crypto wallet app to man-in-the-middle attacks, where any potential hacker can intercept sensitive data as it is transmitted.

• Weak Passwords & No 2FA

Many users still rely on simple passwords and don’t enable 2FA. This creates an easy entry point for hackers to attack your crypto wallet or for credential stuffing.

Best Practices for Securing Your Crypto Wallet App

Let’s come to the main section. In this, we’ll discuss the key crypto wallet security tips you need to pay attention to, especially in 2025. Have a look!

Secure Setup

Start by downloading your wallet app only from official sources. You can use a trusted and updated device and avoid public networks during setup. When creating your crypto wallet, securely back up the seed phrase offline, but never store it digitally. Ensure that you set a strong, unique PIN or password, and consider using a hardware wallet for added protection. A secure setup is your first and most important defence against future hacks or data loss.

Enable Two-Factor Authentication (2FA)

One of the studies from Microsoft discovered that integrating multi-factor authentication in crypto wallets can prevent up to 99.9% of attacks. Also, two-factor authentication (2FA) increases the security of your wallet since it adds an additional layer of verification to access your funds. Thus, always enable 2FA or consider professional crypto wallet app security solutions to keep your assets safe.

Use Multi-Signature Wallets

Multi-signature wallets (or multi-sig) require more than one non-public key to authorize a transaction. This further provides an extra layer of security. That’s because a single key isn’t enough to provoke transfers. For instance, you can install a wallet that requires at least three out of five keys to sign a transaction. This is particularly effective for large companies or enterprises, where several events are concerned.

Protect Recovery Phrases

Your recovery phrase (which is also known as a seed phrase) is the only way to restore your wallet if your device is lost or damaged. Keep in mind that you write it down and store it offline in a secure location, and never take screenshots or save it to cloud storage. For added security, you must consider using metal backups or split storage methods, as they are the best way to store the recovery phrase. Also, remember that anyone with access to your recovery phrase can access your funds.

Use a Cold Wallet for Long-Term Storage

Cold wallets, also known as offline wallets, are not related to the internet. These are perfect for long-term storage of cryptocurrencies and other digital assets. While cold wallets are safe, one must be cautious while using them. Also, choose a reputable wallet and ensure it has security features that protect your crypto wallet from phishing and other cyberattacks.

Leverage MPC Wallets

Multi-Party Computation (MPC) wallets boost security by eliminating the need for a single private key. Instead, multiple encrypted key shares are distributed across devices or parties, which makes it nearly impossible for hackers to compromise the wallet through one entry point. This reduces the risk of loss or theft and improves recovery options. MPC technology is ideal for institutions and individuals looking for decentralized security.

Use Burner Wallets for Airdrop

Airdrops often require connecting your wallet to unfamiliar websites, which can expose you to scams or malicious contracts. To reduce risk, consider using a burner wallet, which is a temporary wallet with no valuable assets for claiming airdrops or testing new platforms. This way, your main holdings remain safe even if the wallet is compromised. Once the airdrop is claimed, transfer the tokens and discard the burner wallet. This is one of the crypto wallet security best practices that you must adopt.

Common Mistakes Users Make (and How to Avoid Them)

Even the most well-informed crypto users can fall into security traps. Here are some of the most frequent mistakes and how you can avoid them:

Storing Seed Phrases in Emails, Cloud Storage, or Screenshots

Saving your seed phrase in digital formats like email drafts, cloud drives, or screenshots may seem convenient, but it is extremely risky. These platforms can be compromised by malware, phishing attacks, or unauthorized access. If a hacker gains access to your seed phrase, they can instantly take control of your wallet and drain your assets.

To stay safe, always store your seed phrase offline. Or, you can consider writing it down or engraving it on a metal plate and keeping it in a secure and private location.

Clicking Phishing Links (Fake Airdrops, Support Scams)

Phishing attacks are among the most common tactics that hackers use to trick users into sharing sensitive information. Fake airdrops, support accounts on social media, or fraudulent websites may ask you to connect your wallet or enter your seed phrase. Once you do, your funds can be stolen instantly.

Thus, always verify links and double-check the sender’s identity. Always remember that legitimate services will never ask for your seed phrase or private key under any circumstances.

Reusing Weak or Common Passwords

Using simple or easy-to-guess passwords like “123456” or reusing the same password across multiple platforms puts your crypto wallet at serious risk. Hackers often use leaked databases and automated tools to crack weak credentials. If one account is hacked, all linked services, which include your wallet, can be hacked too.

You must use strong and unique passwords for each platform. Ensure that the password contains a mix of characters, numbers, and symbols. This is one of the best crypto wallet app safety measures that you must remember.

Ignoring App or Software Updates

One of the common mistakes in wallet security is ignoring app and system updates. They don’t realize that these updates often contain critical security patches. Running outdated versions of crypto wallet apps, browsers, or operating systems leaves you exposed to known vulnerabilities that attackers can exploit.

To protect your assets, consider enabling automatic updates or regularly checking for new versions of your wallet app and device software. Staying updated ensures you benefit from the latest security improvements and bug fixes, and will keep your wallet protected against cyberthreats.

The End Note

That’s all for this blog!

As the crypto ecosystem continues to expand, so do the methods of cyber threats. Thus, it has now become important to secure your crypto wallet app.

From protecting your seed phrase to leveraging technologies like MPC wallets, every security measure you take plays a key role in protecting your digital assets.

And, if you want to build a secure crypto wallet app, reach out to the experts at Technoloader!