The year 2022 has been a challenging one for the cryptocurrency world, with numerous crypto projects and firms collapsing, resulting in people losing their investments and even their life savings. This has highlighted the significance of common sayings in the crypto community, such as "Not your keys, not your coins."
In this article, we will discuss how to keep your crypto secure and avoid falling victim to scams, hacks, and other risks.
One of the main safety issues people face with crypto is scams. Many users get lured by promises of unrealistic returns on investments or fall prey to scammers online. It's crucial to remember that if something seems too good to be true, it probably is. It's important to do thorough research and exercise caution before investing in any crypto or NFT project.
Another common safety issue is centralization. Many users keep their crypto on exchanges or platforms that can get hacked or go bankrupt, resulting in the loss of their funds. This is why self-custody, or controlling your own keys, is essential.
By using a hardware wallet or other cold storage solutions, you can have full authority over your funds and reduce the risk of losing them due to centralization issues.
One of the most critical steps in self-custody is to properly secure your private keys or seed phrase, which is the key to accessing your crypto funds. It's crucial to store this recovery phrase in a safe, secret, and offline location. If you lose or forget your recovery phrase, there is no way to recover your funds, so it's essential to take this responsibility seriously.
Computer viruses and malware are another common threat to crypto security. Software wallets or storing seed phrases on computers or cloud storage solutions like Google Drive or iCloud can be risky, as hackers can exploit vulnerabilities and gain access to your private keys.
Using hardware wallets, which are physical devices that store your private keys offline, is considered one of the safest ways to protect your crypto.
Double-checking crypto addresses and websites is also essential to avoid making mistakes that can result in the loss of funds. Crypto addresses are long and complex, making them prone to errors. There are even malware programs that can swap an address to a hacker's address when you copy/paste, so it's crucial to be diligent and verify the addresses before making transactions.
Fake crypto apps have also become a significant problem, with scammers creating fake apps that look identical to legitimate ones. These fake apps can trick users into transferring funds, resulting in the loss of their crypto. It's essential to download apps from trusted sources and double-check their legitimacy before using them.
Lastly, many DeFi (Decentralized Finance) protocols are not thoroughly audited, which can pose risks to users. It's important to do research and only use well-audited and reputable DeFi protocols to minimize the risk of losing your funds.
In conclusion, while there are risks associated with using cryptocurrency, following proper cybersecurity best practices can significantly reduce the risk of losing your funds.
It's important to be cautious, do thorough research, and use secure storage solutions such as hardware wallets to keep your crypto safe.
Remember, it's not just about how much you earn in crypto, but how much you can keep. Stay informed, stay vigilant, and keep your crypto secure.
Be safe !!
Blog by @CryptoRick423 🎸
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