Most cryptocurrency users, especially DEFI users, have read stories of Wallet hacks. Some have experienced it themselves. Among several ways by which a wallet can be hacked, I want to bring to the notice of my followers, two common ways wallets are compromised.

1. Failing To disconnect From Dapps and other Smart Contracts after Usage.

Most Defi users usually make this mistake. I call it a mistake because by approving the first Smart contract call, you give the Smart contract permission to spend the tokens in your wallet. Irrespective of the fact that some Smart contracts have limited permission and some have unlimited permission, by not disconnecting from a Smart contract after usage, you expose your wallet to hacking.

The hack can come in two ways;

When the Smart contract was created to have unlimited permission, the funds in the connected wallet can be spent without the approval of the wallet owner.

When the Smart contract has limited permission which of course shouldn't be able to spend tokens without the wallet owner's permission. If the smart contract is compromised along the line. The limited permission can expand and the hacker can access the funds in the connected wallet.