In blockchain, it can be said that Crypto and DeFi are fertile ground for those passionate about investing in virtual currencies. However, this is also an opportunity for hackers to rampage, causing significant damage to investors. Therefore, you need to equip yourself with security tips to protect your assets. This article will suggest 4 Crypto Asset Protection Tips to help you avoid security risks and protect your assets.
Identify the Attackers of Your Crypto Assets
Popular Scams in Crypto
Technology is like a double-edged sword because the more it develops, the more scams of hackers will arise. If network security is lax, they take advantage of security holes to easily steal information and assets. Some of the famous tricks can be drawn as follows:
- They will fill your ears with promises of huge profits.
- Taking advantage of people’s trust, they can entice you to invite many users for a specific commission or fee.
- Through familiarization and help, they will ask for Private keys, Seed phrases.
A direct attack on the project
Defi is considered fertile land but is very young in security measures. Therefore, a more sophisticated trick instead of hackers defrauding users, they will choose to attack your account directly through security holes and steal assets.
You could first assume that it doesn’t affect simple wallet connection activities. But there will be an impact on those putting money into the project, such as providing liquidity or depositing money into loans.
So, how can security be made to be effective? Here are four tips to help you safeguard your cryptocurrency investments.
Four tips to protect Crypto assets effectively
Passphrases and Private Key will have the same usage as famous but extremely important security methods. Therefore, we will take Passphrase as an illustration for you to imagine 4 Tips to protect Crypto assets.
Choose a safe storage place.
The first way in 4 Tips to protect Crypto assets is to choose a safe place to store them. The first job after you create a wallet is to keep the Passphrase. Archiving will help you avoid forgetting. You can keep to one of the following tools:
- Google Docs, Google Sheets…(Online)
- Word, Excel, Phone Notes…(Offline)
- Also, you can write it down on paper if it’s your habit.
Passphrase encryption
One of the 4 Tips is Passphrase encryption. In addition to choosing the right storage location, you also need to encode the Passphrase with many disruptive characters, such as:
- You can choose a few characters in the Passphrase and then change them according to your own rules.
- Remember the encoding.
This will make it impossible for other people to see the Passphrase but also unable to access it. However, if you accidentally forget the decryption key, it will make the account immobile, and you will not be able to access it. Another way to prevent forgetting is to write it down on paper and store it in a secure place like a safe…
Use multiple wallets for different activities.
An essential way of the 4 Crypto Asset Protection Tips we would like to recommend is to use a variety of flavors. In the investment world, many believe that “you should not put all your eggs in one basket,” so you should prioritize this way.
Because DeFi creates a diverse operating environment, you can create multiple wallets to secure personal assets, increasing the experience when participating in many projects. If the risk occurs when you put all your money into one wallet and join the testnet, and immediately encounter a scam project, you will not lose all your money.
You can categorize as follows:
- Main wallet: You can divide wallets with functions such as holding top coin (ETH, BTC, …), low carb… The feature of these positions is a limited connection with projects.
- Testnet Wallet: You should give a particular amount depending on the total amount available to experience. In this wallet, you can connect to a lot of projects.
Use Private Email
Email doesn’t usually have much to do with decentralized wallets but involves the CEX exchange. Many brothers use one email for many things, from work and personal stories to account creation. So if the email is leaked, the floor’s security is also significantly reduced.
Therefore, you need to create separate Emails for your own purposes in order to expose it; it also reduces the damage significantly. In addition, the above reason is also part of the birth of the decentralized wallet; you should balance keeping on the exchange and the decentralized wallet.
Typical cases of security incidents
Access to scam app
Because of many preeminent features and great opportunities, many people like to experience Testnet in order to have the chance to receive Retroactive. However, connecting to a less reputable application is also a potential risk.
Therefore, you need:
- – First, you need to check the project’s credibility through the project referrer, viewing backers, the project team, or simply web design on the site…
- – Revoke: Revoke will help you disconnect from the project entirely. Therefore, once you can access the project, you should revoke your wallet.
The wallet is faulty and does not show Passphrase.
If one day there is a problem of not showing information due to something wrong with you, you cannot delete the wallet without saving the Passphrase. Instead, you need to contact the project to find the right solution. That’s why we always recommend keeping vital information to avoid mishaps.
Closing thoughts
The blockchain sector now offers various security methods to keep your cryptocurrency safe. The simple advice is beneficial in keeping your money safe throughout the cryptocurrency trading, storage, and use process. Understanding the trade-offs is crucial since each storage option has advantages and disadvantages.
As always, do proper research into where you’re putting your money or crypto. Remember, “not your key, not your coin.”
