Jan 6, 2023 | Updated Jan 6, 2023
A keylogger is a tool deployed by hackers to record keystrokes and access sensitive data from a victim’s computer. In the crypto industry, cybercriminals often use it as an instrument to steal important information.

What is a Keylogger in Crypto?

A keylogger, also called a keystroke logger, is a hardware device or a software program that monitors and records the keystrokes pressed by someone on a computer. Hackers use keyloggers to steal confidential details like private keys, passwords, bank details, browsing history, etc.

There are two types of keyloggers: hardware and software. Hardware keyloggers connect to the computer through a cable, wire, USB port, or built-in device (like a chip). They sometimes have a camera that captures keystrokes or a USB device that sends malware to the victim’s computer to track all information. 

Software keyloggers are software programs that are installed in the victim’s computer to collect data and screenshots. Often difficult to detect, software keyloggers can be in web forms or APIs.

How to Avoid a Cyber Attack From Keyloggers

Here are a few ways to protect against keylogging attacks:

  • Use a hardware or cold wallet to keep your digital assets safe; cold wallets are offline, and therefore not connected to the internet.
  • Use a trusted antivirus software or anti-keylogger to detect any keylogging activity on your device.
  • Avoid opening suspicious links and attachments, or downloading suspect files.
  • Enable two-factor authentication (2FA) and OTPs (one-time passwords) for accessing exchange accounts and wallets, or to conduct transactions.
  • Keep your operating system, anti-malware, and other software applications up to date.

Unspent Transaction Output (UTXO)

Unspent Transaction Output (UTXO) refers to the amount of a cryptocurrency that is leftover following a specific transaction.

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Off-Chain Transaction

Off-chain transactions is a transfer of value or data, including transactions, that occurs outside a given blockchain network.

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Smart Contract

A smart contract is an agreement in the form of a computer program that automatically executes when predefined conditions are met.

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