Crypto Hacks: 14 Safety Precautions You Cannot Ignore

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To protect yourself from crypto hacks and scams–especially if you’re a beginner–this article is a must-read.

Picture a fast-moving realm where digital money and cutting-edge technology merge — that’s the cryptocurrency industry for you. It’s like a treasure hunt, with the promise of big rewards. But here’s the catch: hidden in the shadows are sneaky scammers and hackers, ready to pounce on the unsuspecting.

The truth is this: the potential for making it big in crypto is exciting, but so is the risk of losing it all. To protect yourself from hacks and scams and prevent the loss of stolen funds, follow these essential precautions:

Crypto Hacks: Protect Yourself Against Unnecessary Risks

1. Keep Your Private Keys Private: Safeguard your private keys at all costs. Never share them with anyone or enter them into any website, app, email, or online form unless you’re certain of the recipient’s legitimacy.
2. Never Share Your Seed Phrase: Your seed phrase, also known as a recovery phrase, is as vital as your private keys. Never disclose it to anyone. It’s your backup to recover your funds in case of loss. Losing your seed phrase could lead to irreversible loss of your digital currencies.
3. Use Reputable Cryptocurrency Exchanges: Choose exchanges with a proven track record for security and safety in the cryptocurrency industry. Research thoroughly before trading and prioritize exchanges like CoinW that offer strong security measures and reliable customer support.
4. Enable Two-Factor Authentication (2FA): Always enable 2FA on your accounts. This extra layer of security adds a code from your phone to your password, making it significantly harder for hackers to gain unauthorized access to your digital assets.
5. Secure Your Digital Environment: Regularly update your operating system, web browser, wallets (especially hot wallets like web or mobile wallets!), and exchange platforms–regular updates help protect against newly discovered vulnerabilities across smart contracts and decentralized finance (DeFi) protocols. Avoid downloading software or apps from untrusted sources. Also, try to avoid connecting your devices to public WiFi.
6. Beware of Phishing Scams: Be cautious of unsolicited messages, emails, or pop-ups asking for personal information, private keys, or seed phrases. Legitimate organizations in the crypto industry won’t request such sensitive information through such means.
7. Be Skeptical of Unexpected Offers: Any unsolicited offers of free crypto (e.g. “send us 10 ETH and we will send you back 15 ETH” — very common on YouTube), prize giveaways, or alerts should be treated with suspicion. Scammers often prey on greed and fear, so avoid clicking on such links, especially when interacting with cross-chain bridges or DeFi protocols. If it sounds too good to be true, it probably is.
8. Stay Vigilant on Discord and Twitter: Be vigilant on social media platforms like Discord and Twitter, as scammers often impersonate well-known figures to trick users. Double-check messages and avoid engaging with suspicious accounts.
9. Err on the Side of Caution: If something seems suspicious or too good to be true, it probably is. Trust your instincts and stay cautious to avoid falling victim to scams.
10. Practice Cold Storage for Large Holdings: If you hold a significant amount of cryptocurrency (this can be anything from a four-digit value upwards), consider using cold storage solutions like paper wallets or hardware wallets. These methods keep your private keys offline, minimizing the risk of online attacks.
11. Research Before Investing in New Tokens: Before investing in any new cryptocurrency or token, conduct thorough research. Look into the project’s legitimacy, team members, use case, and community support. Be cautious of new tokens that promise unrealistic returns or lack transparent information.
12. Avoid Clicking on Random Links: Never click on links from unknown sources, as they could lead to cryptojacking or other security breaches. If your device behaves abnormally, it might be compromised.
13. Verify Direct Sources: When making purchases (of crypto, wallets, NFTs, etc) or entering sensitive information, ensure you’re using official and trusted websites or exchanges. Avoid third-party links that could lead to scams.
14. Stay Informed About Security Trends: The cryptocurrency space evolves rapidly, and new security threats emerge regularly. Stay informed about the latest security trends, hacking techniques and best practices by following reputable sources, blogs, and forums.

By following these precautions, you can significantly reduce the risks associated with cryptocurrency trading and usage, ensuring your assets remain secure and protected.