By offering transparency, decentralization, and high tech in finance, crypto has already revolutionized the traditional finance world. But you know there are security risks that we need to talk about, and these security risks are phishing scams and crypto exchange breaches and we have seen several hacking incidents too. So, in this condition, it is important to understand the safety of your crypto assets and what measures are needed.
Understanding the Risks In crypto
As you know, crypto transactions are irreversible, and this is not like traditional finance. The reason is there is no central authority that controls it over the transactions.
Crypto Exchange Hacks: Centralized exchanges are the most common targets for hackers, and these CEXs hold huge amounts of crypto assets.
Phishing Hack Scams: This is not a problem only for crypto. Fake emails and chat messages that take you to phishing pages can easily steal your login credentials.
Keyloggers and malware: Keyloggers and malware are easy to install in your system, and this way, hackers can steal your funds.
Smart Contract Vulnerabilities: It is difficult, but weakness can be the reason for this, and this way coding will exploit to drain funds. This is for the DEfi platforms
Social Engineering Attacks: There are lots of cybercriminals that can disclose sensitive information and there are many ways they do so.
Essential Security Measures In the Crypto World
1. Use Hardware Wallets
Ledger and Trezor wallet are famous as most secured wallets because here you can save your bitcoin offline and that's the reason it is difficult to target throguh malware or phishing.
2. Enable Two-Factor Authentication (2FA)
There are google authenticator available for 2FA in most exchanges and some exchanges like binance has own authenticator. These are the better options over sms verification.
3. Keep Private Keys Private
Your private keys should be private and you should not save it on gmail or any other online files. There should be a seperate pendrive which you can keep offline in a secure location.
4. Beware of Phishing Attempts
There is simple way to avoid this bullshit and that is check url closely before clicking it and also when you entering your credential. Double-check exchanges and wallet addresses before visiting.
5. Use Secure Internet Connections
I have seen many users who use public wifi for crypto-related things, which is not good at all and is highly risky. In this case, using VPN is a VPN or private internet connection is always best
6. Diversify Storage Methods
Diversifying is the one of the most important thing in crypto. Many people keep all the funds in one exchange and this is what the most risky thing. You have to diversify your funds in multiple wallets so that it will becomes a most secure.
7. Regularly Update Software
You have to update your operating system, wallet, and antivirus. Hackers can take this as an opportunity to destroy your passwords.
8. Use Decentralized Exchanges (DEXs) When Possible
Wanna trade directly from your wallet, then DEX is the best and most secure option because they are decentralized.
9. Be Cautious with Smart Contracts
Interacting with the De-fi platform is good, but you have to be careful and check the reviews and security measures of that smart contract; otherwise, you can be a victim.
10. Plan for Recovery
You must have secure backups in emergency situations. In case you lose funds, then you should know how to recover them.
Thanks a lot.
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