Crypto
Crypto and Cybersecurity: How to Keep Your Cryptocurrency Safe in 2025
Secure your cryptocurrency with key cybersecurity strategies. Safeguard your digital assets from hacks, scams, and vulnerabilities using hardware wallets, MFA, and smart contract precautions.
Cryptocurrency and the blockchain community continue to expand, and 2025 will be no exception. With advancements in blockchain technology, thriving decentralized finance (DeFi) platforms, and the increased popularity of niche virtual assets, securing your digital investments is more critical than ever.
Last week’s report from leading blockchain security platform Immunefi also highlights the risks faced by crypto users, revealing that hackers drained $1.48 billion from crypto projects in 2024, with DeFi being the primary target.
It’s estimated that there are now more than 560 million crypto holders worldwide. With so many individuals owning crypto globally, these assets must be kept safe and protected. While Bitcoin is still the most popular crypto, many other assets have quickly gained popularity among new and seasoned investors alike.
For example, it’s estimated that more than 100 million people own Ethereum alone. Similarly, meme coins are becoming extremely popular as they offer investors the chance to buy in at a low cost and see large gains if the project does well.
According to Eliman Dambell, Ethereum meme coins offer investors a unique opportunity to buy into a project that combines the light-hearted aspect of meme coins with solid utility.
As these coins and other crypto assets gain traction, so do the threats and risks targeting crypto holders. Let’s explore the comprehensive strategies you can use to protect your digital wealth in an era of increasingly sophisticated cybersecurity threats.
Why Is Crypto Safety Important?
Crypto safety is crucial because cryptocurrencies operate in a decentralized system where users are solely responsible for securing their assets. Without proper safeguards, funds can be lost through theft, scams, or hacks, with no way to recover them due to the irreversible nature of blockchain transactions. By ensuring this safety, you protect your digital investments, preserve privacy, and maintain trust in the blockchain ecosystem.
However, as technology advances, it’s becoming increasingly more challenging to keep your cryptocurrency safe. As we move into 2025, you need to understand the strategies to effectively secure your digital assets.
Step #1: Consider Investing in Hardware Wallets
Hardware wallets remain the safest option for long-term storage of cryptocurrencies. These hardware wallets allow users to keep their private keys offline, away from online hackers. Even if your computer or phone is compromised, using a hardware wallet ensures that your funds can’t be accessed without physically interacting with the device.
Before you purchase a hardware wallet, you want to make sure you only buy this device directly from the manufacturer or an authorized reseller. Avoid purchasing hardware wallets from unverified sources or secondhand marketplaces. That’s because these wallets could have been tampered with to include malicious software. Additionally, you want to regularly check for firmware updates from the wallet provider to guarantee your device remains secure.
Step #2: Always Use Multi-Factor Authentication
Multi-factor authentication (MFA) adds a barrier between your assets and potential attackers. Most cryptocurrency exchanges, wallet apps, and blockchain services support MFA, allowing users to pair their accounts with an authenticator app or SMS-based verification.
While MFA is a strong security feature against unauthorized access, be mindful of the method you choose. Authenticator apps like Google Authenticator or Authy are generally more secure than SMS-based codes, which can be intercepted through SIM-swapping attacks.
Step #3: Do Thorough Research Before Engaging with Smart Contracts
The rise of DeFi protocols and blockchain-based applications has brought unparalleled financial opportunities – but also unique risks. Smart contracts, which automate transactions and agreements, are susceptible to bugs or exploitation if poorly coded.
Before interacting with any smart contract, you want to conduct thorough research. Look for audits from reputable firms such as CertiK, OpenZeppelin, or Trail of Bits. These audits evaluate the security of the smart contract and help identify potential vulnerabilities. However, you also want to remember that audits do not guarantee safety. That’s why you should always proceed cautiously, especially with newer projects.
Step #4: Pay Attention to Social Engineering Scams
To trick people into giving up their crypto, scammers often use social engineering. This might involve these hackers sending fake emails, posing as customer support, or setting up websites that mimic trusted platforms to steal recovery phrases or private keys.
Here’s how you can remain safe from social engineering scams:
- Stick to official apps instead of using web browsers for wallets.
- Always double-check URLs before entering any sensitive information.
- Take note that no legitimate company will ever ask its customers for their recovery phrases or private keys.
Remember to stay alert and educate yourself and others about these social engineering scams to help reduce the risk of being targeted by one of these scammers.
Step #5: Always Keep Your Wallets and Software Updated
Keeping your wallets and software up-to-date is crucial because hackers often exploit outdated software. Because blockchain platforms, wallet providers, and exchanges regularly release updates to improve security features or fix vulnerabilities, you want to keep your software and e-wallets as safe as possible by always updating them. To do this, you can:
- Enable automatic updates on your apps and devices.
- Regularly check for firmware updates on your hardware.
- Stay informed about announcements or updates from your exchange or wallet provider.
By skipping these updates, you could leave yourself exposed to preventable attacks.
Step #6: Look into Diversifying Your Crypto Storage
You want to avoid putting all your eggs in one basket. In the context of securing your cryptocurrencies, storing all your digital assets in one account or wallet increases the risk of losing everything if that wallet gets compromised or hacked. Instead, you want to use a combination of storage methods, which could include:
- Hardware wallets for long-term storage.
- Software wallets for day-to-day transactions.
- Custodial wallets on trusted exchanges for convenience when trading.
When you spread your holdings across different wallets, you reduce the potential losses from a single breach.
Step #7: Secure and Protect Your Recovery Phrases
Also known as your seed phrase, your recovery phrase is the master key to your wallet. If you lose this recovery phrase, you lose access to your funds. And, if someone else steals this seed phrase, it means they can steal everything in your wallet. However, you can keep your recovery phrase safe by:
- Use waterproof and fireproof metal backups for extra protection.
- Writing it down on paper and securely storing it – like in a deposit box or safe.
- Avoiding digital storage – don’t save it on your phone, computer, or cloud services.
Remember to never share your recovery phrase with anyone, no matter how convincing they might seem.
Step #8: Only Use Reputable Services and Exchanges
Not all platforms and exchanges are created equal. Even though decentralized platforms are gaining traction, centralized exchanges remain crucial for trading and liquidity. That’s why you should consider only using well-established exchanges with strong security measures. When you do this, you gain:
- Insurance against hacks.
- Storage of funds offline in cold wallets.
- Features like transaction limits and withdrawal whitelists.
For added security, you want to transfer your funds to a private wallet after trading, as opposed to keeping them on the exchange.
Step #9: Be Careful with High-Risk Investments
The rise of niche assets like NFTs and meme coins has captured the attention of many investors. While some may deliver impressive returns, others can be scams, such as pump-and-dump schemes or rug pulls. To avoid falling victim:
- Only invest what you can afford to lose.
- Research the project, its team, and its tokenomics thoroughly.
- Use on-chain analytics tools to detect suspicious activity or patterns.
Approach high-risk investments cautiously, and don’t let the fear of missing out cloud your judgment.
Step #10: Start Preparing for Quantum Computing Threats
As quantum computing advances, the cryptographic algorithms protecting blockchains could become vulnerable. While practical quantum attacks are still years away, the crypto community is already exploring quantum-resistant solutions.
Keep an eye on developments in this area and stay informed about projects implementing quantum-proof measures. Proactively adapting to this future threat can help secure your investments in the long term.
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The Delaware House of Representatives has passed a bill that would prohibit the operation of cryptocurrency ATMs across the state, citing growing concerns over fraud and consumer protection. The legislation, now headed to the state Senate for consideration, would require all existing crypto ATMs to be shut down and removed within 90 days of enactment.
What the Bill Proposes
House Bill 123, as reported by Decrypt, targets the proliferation of cryptocurrency kiosks that have become common in convenience stores, gas stations, and other retail locations. Lawmakers argue that these machines are increasingly used to facilitate scams, particularly targeting elderly and vulnerable residents who may not fully understand the technology. The bill would make it illegal to operate, maintain, or permit the installation of a cryptocurrency ATM anywhere in Delaware.
Why This Matters for Consumers
Cryptocurrency ATMs allow users to buy or sell digital currencies like Bitcoin using cash or debit cards. While legitimate users appreciate the convenience, regulators have flagged them as high-risk for money laundering and fraud. The Federal Trade Commission has reported a surge in scams where victims are directed to deposit cash into these machines under false pretenses. Delaware’s proposed ban reflects a broader state-level push to rein in unregulated crypto financial services.
Similar Actions in Other States
Delaware is not alone in taking a hard line. Indiana, Tennessee, and Minnesota have previously enacted comparable restrictions or outright bans on crypto ATMs. These measures often include licensing requirements, transaction limits, and mandatory disclosures. The trend signals a growing skepticism among state legislators about the consumer safety risks posed by unmonitored crypto kiosks.
What Happens Next
The bill now moves to the Delaware State Senate, where it will undergo committee review and potential amendments. If passed, Delaware would join a small but growing list of states with explicit bans. Industry advocates argue that such laws could stifle innovation and push transactions underground, while consumer protection groups praise the move as necessary to prevent financial harm.
Conclusion
Delaware’s legislative action highlights the ongoing tension between cryptocurrency adoption and consumer safety. As the bill advances, stakeholders on both sides will be watching closely. For now, the message from Dover is clear: protecting residents from crypto-related fraud is a priority that may outweigh the benefits of unregulated ATM access.
FAQs
Q1: What is a cryptocurrency ATM?
A cryptocurrency ATM is a kiosk that allows users to buy or sell digital currencies like Bitcoin using cash, debit cards, or other payment methods. Unlike traditional ATMs, they are not connected to a bank account.
Q2: Why does Delaware want to ban crypto ATMs?
Lawmakers cite a rise in fraud cases, especially among seniors, where scammers trick victims into depositing cash into these machines. The bill aims to eliminate this vector for financial exploitation.
Q3: What happens to existing crypto ATMs in Delaware if the bill becomes law?
Operators would have 90 days to shut down and remove all machines. Failure to comply could result in penalties. The timeline is designed to give businesses a reasonable window to adjust.
Key Takeaways
Word Play With a Warning
Robert Kiyosaki, the author of the best-selling personal finance book “Rich Dad Poor Dad,” is recasting a familiar piece of investing advice. In a post on X, he argued that many investors only believe they are protected, adding:
“De-Worse-ified means they think they are diversified, but they have all their diversified assets, such as gold, silver, Bitcoin, stocks, bonds, real estate, and oil, in one asset class.”
His point is that spreading money across many holdings does not help if those holdings all move the same way in a crisis. When a liquidity shock hits, correlations rise and supposedly diverse portfolios can fall in unison, leaving investors “de-worsified” rather than diversified.
The commentary is consistent with the stance Kiyosaki has pushed throughout 2026 as he recently named bitcoin among the safest investments for the year, grouping it with what he calls real assets. He has repeatedly listed gold, silver, oil, food, bitcoin, and ether as his preferred holdings, framing them as scarce stores of value that printed money cannot dilute.
He has paired that view with stark price calls, setting a target of $250,000 for BTC by year’s end alongside a longer-term goal of $1 million. At current levels, the move would require a gain of more than 230%. On the precious metals side of things, he recently suggested a possible $200-per-ounce silver level this year, calling the metal’s climb a signal of mounting financial stress.
Kiyosaki’s broader thesis is darker still, warning investors of a historic market crash that he ties to surging global debt and fragile private credit markets, urging followers to build income streams, learn trade skills, and accumulate hard assets before the storm.
Timing Is Everything
The “de-worsified” warning arrives at a tense moment for markets, especially as bitcoin posted its worst week since the 2022 collapse of Sam Bankman-Fried’s FTX exchange, sliding below $60,000 as record exchange-traded fund (ETF) outflows and risk-off sentiment gripped the sector.
That is exactly the kind of broad drawdown scenario (where bitcoin, equities, and other assets fall together) that Kiyosaki has used time and again to illustrate his point.
That said, he has become an increasingly polarizing voice within the broader economic landscape, with skeptics pointing out that his crash predictions are frequent and his price targets aggressive (and that he has issued similar warnings for years). Supporters argue his core message of owning scarce assets, avoiding hidden correlation, and preparing for volatility is a reasonable hedge against an era of heavy money printing and rising debt.
Whether or not his $250,000 bitcoin call lands, the distinction he is drawing is a real one, as true diversification really does depend on owning assets that behave differently (not simply owning many of them). In a market where everything from gold to crypto to stocks can move on the same macro headlines, that lesson may matter more than any single forecast.
North Carolina lawmakers on Tuesday advanced a bill to protect consumers from cryptocurrency kiosk fraud.
House Bill 920, which passed the House with a 115-to-0 vote, aims to regulate an industry that its author claims is unregulated in the state.
“It’s the wild, wild West,” Rep. Neal Jackson, R-Moore, said during a committee discussion on Tuesday. “There is no regulation whatsoever in North Carolina. That’s what we’re trying to do here.”
Lawmakers cited a growing amount of fraud as the reason for the bill. About $389 million in losses were reported last year through cryptocurrency ATMs, a 58% increase from 2024, according to the FBI. The majority of those impacted are 60-plus.
The bill now goes to the Senate for consideration. It seeks to:
- Require licenses for all kiosk operators under the Money Transmissions Act.
- Place operators under the supervision of the Commissioner of Banks.
- Require fraud warnings and transaction receipts for every transaction.
- Require compliance and consumer protection officers that are always available.
It also seeks to place limitations on transactions in an effort to reduce fraud, requiring a $2,000 daily limit for the first 30 days for new customers and a $5,000 daily limit for existing customers, who would qualify after 30 days.
While other states have service fees between 20% and 30%, Jackson suggests putting a cap at 14%.
State Rep. Tim Longest, D-Wake, expressed concern about having the kiosks at all in the state. He said the bill’s protections could be stronger.
“These machines can be the subject of fraud, basically facilitating fraud on seniors and other vulnerable individuals and in those cases,” Longest said. “… In crafting regulations, I think it’s important that we ensure consumers are adequately protected by those regulations and I do not believe that, under the language of the bill currently before you, those regulations are sufficient to protect consumers.”
Jackson pointed to this bill as an effort to regulate, not shut down, cryptocurrency kiosks in the state and said there are even more consumer protections in place.
David N. Tente, the executive director of the ATM Industry Association, said the bill — and others like it — is problematic because it requires operators to provide refunds to fraud victims in certain instances.
“In most cases, the cash in the ATM/kiosk does not belong to the operator, which means that returning any of it would be, technically, theft,” Tente said. “If you give someone cash for something, and you change your mind after they leave, you probably won’t get it back.”
He added: “We certainly feel sorry for those being scammed, but there are very simple things you can do to avoid it.”
Tente said these kinds of scams have existed for centuries, adding: “They are still here — just using different means of payment.”
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