Crypto users, from newcomers to experienced ones, should not get complacent in securing their assets if they want to be in the game for the long haul.
Key Takeaways
- With the increasing popularity and adoption of cryptocurrency and NFTs, hackers are finding new and improved ways to steal your valuable assets.
- Taking your crypto security seriously is crucial to not getting hacked. All crypto users should adopt strong security habits to keep their tokens safe.
- Phemex, one of the industry’s leading exchanges, applies a high level of security to protect users’ assets.
We hear far too many instances of people losing their cryptocurrency due to hackers, phishing attempts, or simply losing access to their wallets. This article will present a set of strong security routines that will assist users in keeping their tokens safe for the rest of their lives.
Not Your Crypto, Not Your Keys
Assume you intend to keep your newly purchased cryptocurrency for many years. Self-custody is critical since it means that the only person who can access your account and the assets contained within it is you.
When you make a wallet, you generate a private key as well as a corresponding public key.
To receive tokens, public keys serve as the holder's address, which is available to anybody (just like anyone can share their email address to receive messages). At the same time, the private key is required to access the cash housed in the public address and determine who owns the assets. Consider the private key to be your email account's password.
Seed phrases are used as a user-friendly solution for bitcoin wallets because private keys are often made up of a long string of characters. Your seed phrase, which consists of 12-24 random syllables produced by your wallet when you set it up, is your private key in a different format. Seed phrases are often referred to as mnemonic phrases or recovery phrases.
A wallet owner should never share their seed phrase with anybody else. If they misplace it, their cryptocurrency is usually lost permanently. Anyone who obtains access to a wallet's seed phrase gains control of the assets.
Leaving Your Comfort Zone
The most common dangers to cryptocurrency consumers will be through their wallets or exchanges. The following are some recommended tips and best practices for keeping your valuable tokens safe.
Backing up your private keys: always write down the seed phrase and keep it somewhere safe where only you can access it. Do not save your keys in the cloud or email them to yourself because servers can be easily compromised.
Use a cold wallet: Cold wallets are air-gapped devices that keep your private keys and are never linked to the internet. Cold wallets are great for long-term storage because they are nearly impossible to hack.
Network security: Don't be the guy who has their cryptocurrency stolen at Chipotle. When using a public internet connection, use a VPN. Check your home router periodically because you never know if your neighbors are attempting to bypass your connection.
Secure your email: If an attacker has access to your email account, they can rapidly retrieve or change passwords in order to gain access to your exchange account. One simple tip is to delete all backup emails and phone numbers that were used for verification. Enable two-factor authentication instead (2FA). You can also utilize a physical hardware device, often known as a security key, to require hackers to take the device in order to compromise an account. Consider utilizing a secure email service like Protonmail. Be wary of phishing emails and other questionable messages, especially those that include links or attachments.
Use distinct passwords for each and every exchange you use. Using a password organizer like 1Password or LastPass and changing your master password on a regular basis is a simple option. You can also use a random password generator to generate secure passwords that incorporate digits, uppercase and lowercase letters, and special characters.
Browse the web safely by avoiding harmful browser extensions and without saving passwords in your browser. To prevent phony websites that look identical to the real ones, bookmark your favorite crypto sites and use privacy-focused browsers like Brave.
Be wary of SIM swaps: a SIM swap is a harmful operation in which a hacker attempts to convert their victim's mobile service to a SIM card in their control. The hacker employs social engineering techniques to deceive the cell service provider and poses as the victim. The hacker then gains access to any services or accounts that have SMS or email recovery enabled. To avoid SIM swaps, create a 6- to 8-digit PIN that must be entered before you can do anything with your account.
Exchange-specific security: process withdrawals in time-locked vaults with a time limit. It is advised that you "safelist" addresses to ensure that only wallets under your control receive your payments. If your account is compromised in this manner, you will gain valuable time to retake control of the account.
Keeping the chances of being hacked to a minimum will provide you with peace of mind. You may not be concerned right now, but substantial benefits can quickly evaporate if storage security is not treated carefully. Crypto was designed for self-storage.
Consider Phemex, one of the industry's major exchanges, if you want to stock up on your favorite tokens for the next bull run. Phemex has never been compromised. Phemex has put in place a number of strong security measures to ensure the safety of its customers' digital assets.