The cryptoverse is a public, decentralised network where anyone can join without sharing their personal details. While the transactions conducted on the Cryptocurrency Exchange in India are public, the identity of the people transacting always remains anonymous. Dusting attacks were created to unveil the identity and reveal information of the crypto wallet, making investors vulnerable to phishing scams. How can you protect your crypto wallet from an attack?
You’ve bought cryptocurrency and are trading on the Cryptocurrency Exchange in India. When you trade, your wallet frequently holds crypto dust. What is crypto dust, you ask? Dust refers to small amounts of crypto that are so negligible, they often go unnoticed. For example, a satoshi (the smallest unit of a bitcoin) is equal to 0.00000001 BTC. Dust is often equal to approximately 200 satoshis, that’s 0.00000200 BTC.
How do you get crypto dust in your wallet? Crypto dust is remnants of a transaction. As they are so small, they are not tradeable. So, how is crypto dust used to unveil your identity? For that, let’s first understand what exactly is crypto dusting.
What is crypto dusting and why is it dangerous?
Crypto dusting or bitcoin dusting refers to a malicious attack on your cryptocurrency wallet. A bitcoin dusting attack is where the hacker or attacker issues a large number of extremely small transactions into a multitude of private crypto wallets. You may not even notice it. The hacker then analyses the transactions sent to these wallets by studying the dust’s movement. So when you try to move the crypto dust, they will be watching. They link the dusted addresses to the crypto wallet holder, revealing your identity and details. How do they benefit from knowing your identity? They can now use this information to launch a phishing scam or even resort to blackmailing you.
How do you prevent a crypto dusting attack?
If you maintain discipline about your crypto wallet, you can avoid falling prey to a crypto dusting attack.
1. Don’t move the dust.
If you have received dust, it is best not to move it so the hacker cannot track its movement. Use apps that allow you to mark the small, unknown transactions in your wallet. This will help you to keep track of them and ensure that you don’t move them on the Cryptocurrency Exchange.
2. Be vigilant with your wallet.
Monitor every single transaction in your crypto wallet with a keen eye. If there is a sudden influx of cryptocurrency tokens, then you know that you are possibly being dusted. Get a wallet app that provides notifications every time you receive new funds, so you’ll be on alert all the time.
3. You are the custodian of your wallet.
Your privacy is your responsibility. Never give out any of your private information on a website or link in exchange for coins or tokens as you’ll unwittingly be giving out data that compromises your privacy.
The cryptoverse is a very resilient network, however, digital wallets are the weakest link in the blockchain. When selecting one, make sure that the wallet provides robust encryption, utilises the best antivirus software and saves your private keys in secure, encrypted folders, just like India’s best cryptocurrency exchange ZebPay ensures.
It’s better to use a VPN (virtual private network). There is no reason to worry if you have crypto dust in your wallet as that doesn’t necessarily mean you are a victim of a dusting attack. If you take the necessary precautions and are vigilant with your balance and transactions, you should be well protected from a bitcoin dusting attack.