Crypto

Crypto and Cybersecurity: How to Keep Your Cryptocurrency Safe in 2025

Published

1 year ago

December 4, 2024

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.

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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Crypto

Crypto Demand Hits Underwriting

Published

11 hours ago

February 18, 2026

Press Room

A growing share of young, affluent investors now hold part of their net worth in cryptocurrency — and many are reluctant to liquidate those positions to buy a home. Non-QM lenders are beginning to adjust.

Newrez has formally integrated eligible cryptocurrency holdings into its non-agency underwriting framework, allowing borrowers to use digital assets for qualification without selling them. The move places crypto alongside traditional securities accounts within the company’s Smart Series product suite, reflecting a shift in how borrowers structure their wealth.

Other non-QM lenders are moving in the same direction. Newfi Lending recently expanded its Sequoia DSCR program to allow borrowers to count a portion of Bitcoin and Ethereum toward reserve requirements without liquidation. Under Newfi’s guidelines, up to 25% of Bitcoin and Ethereum held in a Coinbase account and up to 50% of crypto ETFs or mutual funds held at institutions such as Fidelity or Schwab may be applied toward reserves, with total crypto capped at 50% of required reserves.

How It Works

Under the updated framework, eligible cryptocurrency holdings may be considered as part of the asset analysis when qualifying a borrower. Crypto is not accepted as currency for down payments, and borrowers must still close in U.S. dollars.

President of Newrez, Baron Silverstein

“The suitability is the same,” said Baron Silverstein, president of Newrez. “All we’re doing is accepting crypto assets to qualify, so it would be no different from looking at somebody’s securities account.”

Silverstein described the rollout as a measured first step within the non-agency channel, structured around established underwriting discipline rather than a new risk model. “We felt that, at least in the non-agency space, that this was an appropriate first move for us,” he said.

He noted that the approach mirrors how the GSEs treat other volatile assets held in securities accounts. “The GSEs are very prescriptive about the haircuts that they allow or require for assets in an individual’s securities portfolio account,” Silverstein said, pointing to holdings such as gold futures that also fluctuate in value.

Newrez evaluated crypto using a similar framework. Silverstein emphasized that the program does not alter core underwriting standards. “When you benchmark it in that manner, it really just becomes evaluating a price regression analysis and then what haircuts you feel are appropriate from a risk perspective on consumer-owned crypto,” he said.

Why Now?

Silverstein said demand among younger investors, ages 18 to 40, helped drive the decision, noting that borrower balance sheets increasingly include digital assets. “When we have conversations with clients — you hear it more and more — customers say they have crypto as part of their investment strategy,” he said.

The company’s press release cited the expanding global cryptocurrency market and noted that an estimated 45% of Gen Z and Millennial investors (also considered future homebuyers) own crypto.

Survey data from Coinbase shows nearly half of young investors own cryptocurrencies and rank crypto second only to real estate as a top growth opportunity. A YouGov investment trends report found Millennial and Gen Z investors are more likely to own crypto than a retirement account and are as likely to own cryptocurrency as they are to own real estate.

“My kids own crypto; I don’t,” Silverstein said. “I’m an old dog, and they have grown up in the digital age. They’re a lot more comfortable with the digital experience and using digital tools with what they do every single day.”

At the same time, Silverstein acknowledged that traditional agency programs have not yet adapted to recognize crypto assets for mortgage qualification. He framed Newrez’s move as a response to generational change.

“I think that the new customer is likely going to have crypto as part of their investment,” he continued. “That’s why I felt like this was a really good first step into the approval process for when they decide to buy a home.”

What It Means for Loan Officers

For loan officers, the update expands the range of borrowers who may qualify without restructuring their balance sheets.

“I think this will be a really big benefit for loan officers to support their customers,” Silverstein said. “If a customer comes to them and says, ‘look, 50% of my assets are in crypto,’ then they absolutely will have an option to say, ‘yeah, that can work for this type of mortgage.’”

Reaching those borrowers may require different referral strategies. A November survey from crypto infrastructure company Zerohash found that 35% of wealthy young Americans earning between $100,000 and $1 million annually had moved money away from advisors who do not offer crypto exposure. More than half of those reallocations involved between $250,000 and $1 million. The study found many younger investors rely on friends, family and online platforms such as YouTube for financial information.

Silverstein said he expects both advisors and competing lenders to adapt. “I would be surprised if you don’t see others follow suit,” he said. “That’s just my guidance and gauge on how competitive our industry is.”

The Bottom Line

Crypto is no longer a fringe conversation. For a growing segment of borrowers, it’s a meaningful line item on the balance sheet.

For loan officers, that shifts the initial discovery conversation. Instead of asking whether assets exist, the better question may be where they are held — brokerage account, retirement fund, or digital wallet. Borrowers who appear liquidity-constrained on paper may be asset-strong, but unwilling to trigger a taxable event or exit a volatile position to qualify.

Non-QM lenders are beginning to structure policy around that reality. Originators who understand which investors will recognize crypto, how haircuts are applied, and where caps apply can turn what looks like a declined file into a viable approval.

The opportunity remains limited by volatility and investor overlays. But as more wealth migrates into digital assets, the ability to navigate crypto within underwriting guidelines may become a competitive advantage rather than a niche skill.

Crypto

Gamma Prime Brought the Tokenized Capital Summit to Hong Kong on February 9, Showcasing its Tokenized Global Marketplace for Private Investments

Published

23 hours ago

February 18, 2026

Press Room

Gamma Prime Brought the Tokenized Capital Summit to Hong Kong on February 9, Showcasing its Tokenized Global Marketplace for Private Investments – Press release Bitcoin News

Crypto

Best Cryptocurrency Stocks To Keep An Eye On

Published

1 day ago

February 17, 2026

Press Room

Galaxy Digital, Bitfarms, and HIVE Digital Technologies are the three Cryptocurrency stocks to watch today, according to MarketBeat’s stock screener tool. “Cryptocurrency stocks” refers to shares of publicly traded companies that derive significant revenue from, provide services to, or hold substan