The CEX Armageddon is a harsh reminder that security matters. "Not your keys, not your crypto," rumbles again. The events of last year have shown that security is a neglected topic. People got rekt due to many CEX firms collapses, mainly because they held most of their portfolio on those platforms. "They are safe, I am in good hands" was the most famous quote.
We offer a breakdown of must-have crypto security measures plus top tips to protect assets and reclaim full control.
1. Not Your Keys, Not Your Coins
The words are classic, and you probably heard many times about this mantra. If you let tokens on exchanges, they are not truly yours, as custodial ones can lock your access to your funds, and you will not be able to withdraw anything.
Furthermore, hackers are always on track to hunt exchange funds and DeFi platforms. ChainAnalysis has reported that October 2022 was the biggest month in the biggest year ever for hacking activity.
This should ring as an alarm bell for all of us.
2. Never Share Your Private Keys/Seed Phrase
There is a huge flow of scammers that try to trick you into putting your seeds/keys on their websites. They usually use FOMO or big warnings to make you act fast, giving your private info without thinking about it.
"If you immediately send me "X" of your crypto, I will give you back twice."
"Congrats, you have been selected for a fast airdrop. Fill out the form with all your private info!"
Never share anything with anyone, plus check the authenticity of who writes to you.
Despite our efforts to educate ourselves and others about these pitfalls, we're still seeing an increase in the number of people falling for them.
3. Use Strong and Sophisticated Passwords
Never use the same password twice since hackers target crypto services. Have multiple passwords for sites. Make your passwords contain at least 15 characters to ensure your funds will be hard protected.
4. Use Multiple Wallets
There are wallet options to choose from in the crypto world. We have the hot wallet option and the cold wallet option. However, it is always best to choose an air-gapped one. This is because they are more secure than those directly connected to a PC.
5. Separate Bitcoin from Altcoins
This is something that people usually do not know. You can reduce a potential surface attack by having a hardware wallet, $BTC dedicated and one to altcoins.
To simplify, it is the set of ways an unauthorized entity (attacker) can enter or extract data from a system. This attacker can even get to the point of creating a fraudulent signature (unlikely but possible) or injecting malware. You can set up more than two wallets for safety.
6. Write Down Your Seeds
There are two schools of thought:
-Those who write down on paper
-Those who engrave them on tab steel.
7. Buy Wallets from Official Merchants
Do not buy a hardware wallet from Amazon or even external sites. Someone could manipulate the device during the supply chain and save the original seeds.
Final Thoughts
As much as you try your best to be safe, we have seen that the final decision always comes down to you as an individual. You are your bank. Try your best to be safe and follow the above steps.
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