Since its advent as an actual market in the global economy, the cryptocurrency market has only grown in value and popularity.
When it first started out, the market had a value of only a few dollars and many claimed it to be a fake market for fake currencies that don’t have any real value. Today, that same market is worth trillions of dollars and it is booming more and more with each passing day.
Whoever had faith in the market early on invested early in it and are crypto billionaires now. Their success stories have moved many investors to take action and invest in cryptocurrencies and if you too want to be one of them then you can click here to do so.
These investors primarily open their wallets on crypto trading platforms to get easy access to cryptocurrencies and trade with them without much hassle.
It is strongly recommended that you diversify and divide your portfolio by opening various trading wallets.
To ensure their maximum security, it is also crucial to maintain a unique password for each of these wallets, according to superferry.com.ph/crypto-genius-opinie-2021-oszustwo-czy-nie/.
However, this fact is lost on many investors and most of them apply the same password for each of their crypto trading wallets. This can have extremely drastic consequences in terms of account security and in this article we will tell you exactly why you should never use the same password for all your crypto trading wallets.
Read the article till the end so that you don’t miss out on crucial details.
You become vulnerable to hackers
One of the simplest and most major threats to your crypto trading wallets is a hacker. Hackers, provided enough time and resources, can easily access and hack your account which can cause you to lose all access to your crypto wallet and trading account.
From there, the hacker can simply make investments on your behalf or transfer all your crypto to their own anonymous public address.
One sure way of inviting hackers is by having the same password on all your trading accounts. By not changing your password from time to time and assigning an unique passcode for all your wallets, you leave your wealth in the hands of a hacker.
This can cause your wallet to have immensely vulnerable security which can be exploited by a hacker with relative ease.
If you want to reduce the risk of hackers accessing your wallet and taking all the crypto assets you have, we strongly recommend that you ensure your wallets don’t have the same password and instead have an unique passcode for each single one of them.
You can lose access to all your accounts at once
The main reason why investors open multiple accounts and divide their portfolio is to reduce the amount of damage a hacker can cause to them.
Supposing a hacker finds out the password to one of your crypto trading wallets and accesses it, there is a very large chance that they will try the same credentials of other popular trading platforms to get access to your accounts without even putting in too much effort.
Most of the time, this works out pretty much in their favor because many people have the habit of keeping the same password across all their wallets and devices.
That’s why it is so necessary that you keep an original code for each and every single one of your trading wallets so that even if one of them is compromised, you can be assured that you still have the rest protected by maximum security.
Having the same password can also mean losing access to all your personal social media accounts
While losing your trading wallets is a big shock in itself, it can multiply ten folds if the same malicious third party accesses your social media accounts as well.
You’d be surprised to know that many people keep the same password for each and every single one of their accounts. This implies that there is a very likely chance that a person who has the same password for their trading wallets also has the same password for their social media accounts.
Financial loss is nothing compared to a complete breach of your and your loved ones privacy which can be easily used against you in the form of blackmail.
They can also get access to files and documents that are extremely confidential in nature for your job and life. Or alternatively, access to your credit and debit cards which can further give them incentive to loot out your cards as well.
If you want to ensure that this doesn’t happen with you in the future, make sure you retain a unique passcode for all wallets. As an added safety measure, try to keep a different password for your social media accounts as well.
You risk all your crypto assets to get stolen
Your trading wallets have direct access to your cryptocurrency wealth. If a malicious third party accesses your trading wallets, it indirectly means that you lose all control of your cryptocurrency unless and until you take quick actions.
In today’s modern world where cryptocurrencies are constantly hitting new ATHs (all-time-highs), this risk can prove to be extremely expensive.
Your own acquaintance or friend can get potential access to your wallets
Many people who use the same password for their wallets tend to do so because they want a simple password that they can remember everywhere.
This is often their, or their loved one’s, birthdate, phone number or a series of their favourite numbers. While this knowledge is not available to a malicious third party hacker directly, it is available to your nearby acquaintances and friends.
Some of these individuals will have no problem trying out your passwords on your trading accounts once they discover you are a crypto trader.
This is not uncommon and has happened before in millions of cases and it is necessary that you take the crucial steps to prevent it from happening to you.
There are several reasons why you should never use the same password on multiple trading accounts and in this article we provided insights on exactly that.
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