Heard people talking about how to keep your crypto safe on Web3 but not sure how? In this blog we will walk you through all of the key points.
A Simple Way To Staying Protected On Web3
Many of the same principles that keep you safe on the traditional internet apply to Web3. That means being on the lookout for nefarious communications and links. In addition, using complex passwords, two-factor authentication and cold wallets will make you a much more difficult proposition for potential hackers.
Web 3 – An Emerging Ecosystem
The Web3 ecosystem is still very much in its formative stages on the blockchain. The lure of vast sums of cryptocurrencies is enticing for fraudsters who will leverage any weakness they can find. The end game is for Web3 to be virtually impenetrable to hackers but right now there may still be back doors that would-be thieves can exploit. Until then, there are a number of safe practices that all Web3 users should observe to protect their assets.
Practice Safe Security Habits
Always use solid, unique passwords and insist on two or even multi-factor authentication where possible. It is also prudent to examine URLs, ENS domain and crypto wallet addresses for disguised and deliberate misspellings that should indicate you are being directed to a fake website. Never click on links contained in unsolicited emails or social media sites including Telegram or Discord. And be wary of links to open dApps (decentralized applications) because they can easily be forged and redirected.
Never Give Out Your Seed Phrase
Your seed phrase or recovery phrase is your skeleton key to your crypto. If it lands in the possession of someone else, they could take all of your funds.
Use a Cold Wallet
Hot wallets are connected to the internet at all times leaving them vulnerable to hackers 24/7. Cold or hardware wallets take your private keys offline and beyond the grasp of thieves. Using a cold wallet keeps your crypto and NFTs safe because it gives the user the chance to approve or reject any wallet transactions.
Do Your Homework
NFTs have been quite the buzz in the last year making them an attractive opportunity for scammers. Read up about any NFT project to avoid being seduced by anonymous developers and a potential “rug pull” where con artists attract investors to their project and then take off with all of the money before its completion. Always look up the source code of an NFT’s smart contract address. If it is not made available, it is an obvious red flag. When investing in an NFT, create a new wallet address with just enough funds needed to make the purchase rather than using the wallet that contains all of your crypto assets. That way, if you become the victim of a scam, you will only lose what you were prepared to spend on that NFT, rather than everything you owned.
Be Wary of Dapps
Don’t rush in to connect your primary wallet to any dApp. Ensure you are at the site intended and that it is legitimate. And as above, use a secondary wallet to engage with the dApp you desire, rather than leave all of your assets vulnerable.
Don’t overshare personal information online. It can make you a prime target for extortion scams. Ensure any details you give out are 100% necessary and understand how they will be used. Transactional data relating to your primary wallet should never be shared with anyone.
Beware Of Impersonators
It’s not difficult to hide or change your identity online. Fraudsters frequent cyberspace posing as representatives of real organizations with the intention of stealing your crypto. Be extremely suspicious of anyone who randomly contacts you and never give them any personal information. You can check if someone really is who they say by contacting them via an alternative social media channel, asking them to verify their identity.
Spread your Assets
If you own a significant sum of cryptocurrency, consider spreading those assets over several wallets. That way if one is hacked, you haven’t lost everything. Equally, it’s a good idea to use different passwords not just across your wallets but when accessing different Web3 platforms as well. A good password manager can help with this. It means that if one of your passwords falls into the wrong hands, it doesn’t leave your entire crypto portfolio at risk.
Don’t Use Public Networks
Never log on to Web3 via public wifi networks. It will leave your passwords and your crypto assets at the mercy of a third party and any hackers who have already compromised that network.
Want To Know More About Staying Protected With Web3?
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