Most crypto communities are filled with passionate individuals that want to participate in the future of the blockchain. Hence, for active involvement with a project, a crypto wallet is necessary.
Remarkably, it is through the crypto wallet that crypto enthusiasts easily fall victims to phishing attempts resulting in the loss of the assets held in their wallets.
And so, many crypto enthusiasts wonder — how they can ensure their crypto wallet safety?
Tips on Keeping Your Wallet Safe
As crypto wallets are the tools for managing tokens, it is a good idea to be updated on various ways of keeping them safe. Similar to handling a bank account, users need to learn how to recognize potential threats and act in a way that doesn’t compromise the security of their assets.
Never Share Your Seed Phrase Online
The seed phrase is probably the most important feature of a crypto storage wallet: it basically is the key to accessing your funds on blockchain.
Consisting of usually 12 words, a seed phrase is created at the time an individual opens their wallet and it can be used to set up the account on a different device, restore a lost wallet, and, most certainly, access the available tokens.
This is why scammers infiltrate communities and use fake websites to trick community members into providing such information. To safely store your crypto tokens, it is recommended to note the phrase down and save it offline somewhere accessible only to you.
Scan Your Computer Periodically for Malware
The place where individuals access their wallets is often through their personal computers. This is the most convenient path considering that many wallets can be used as a simple Google Chrome extension. Thanks to add-ons like Phantom or MetaMask in creating a web wallet. But as crypto wallet options develop, potential threats also become more advanced.
Unfortunately, as it often happens in the world of the Internet, the device used to a ccess the wallet could be infected by malware and copy the important information needed to access your wallet, besides accessing other sensitive data stored in your device. This is why it is crucial to periodically scan the computer for any potential threats.
Use a Hardware Wallet Over a Software One
While software crypto wallet options are a free way to store crypto tokens and conclude transactions, hardware wallets keep on improving the safety of cryptocurrency operations with the combination of software, latest technology, and physical access.
So, what exactly are hardware wallets?
These are small electronic devices, reminiscent of USB drives, that can store crypto tokens offline. This means that, in contrast to a web wallet, the tokens aren’t accessible via the browser, and hacking a drive that is not connected to any network is basically impossible. This is the highest possible level of crypto wallet safety.
Even in the case of physical theft of the device, without the private key, the thief will never be able to access the cryptocurrency stored within.
Use a Non-Custodial Wallet Over a Custodial One
Custodial wallets connected directly to the exchange might be a convenient way for a newcomer to enter the world of crypto investing. It does not employ additional, hard-to-remember security features, and the recovery of their password can be done through e-mail.
However, this convenience comes at a price. A custodial wallet is easier for a hacker to take advantage of. The owner of cryptocurrencies relies on the security of the exchange, introducing a third party between them and their funds. In contrast, a non-custodial crypto storage wallet is directly linked to the individual, who is the only person responsible for maintaining the security of the fund on it. In other words, only the owner of the wallet has access to the crypto wallet seed phrase, and if it gets lost, the wallet provider can’t recover it for them.
Never Use a Brainwallet
A seed phrase should never be made up by the individual simply because the associations the person came up with might not only be easy for them to remember but also easy for the hackers to guess. The human brain is unable to be as random as a computer program.
To safely store crypto, relying on a built-in seed phrase generator is a much more fund-sensitive approach. Placing your seed phrase offline through writing it down or engraving, and putting it in a safe location (journal, personal calendar, or even hard box safe) is the right way to do that. But if a user wants to remember the 12 English words generated by a crypto wallet as a backup to the above mentioned methods,mnemonic peg system could be used. Although it is not recommended.
Crypto wallets are a necessary tool for anyone involved in the crypto space. Through the constant development of software and hardware solutions, creating a wallet is a matter of a couple of clicks. This availability poses a serious crypto wallet safety threat, but thanks to the tips listed above, individuals and their crypto tokens will be safer and less likely to fall for scams.
WeCova ensures that crypto communities are safe from scammers by providing helpful information about potential dangers. To help your community be a more secure and friendly place, find out more about our Community Management service.
Contact us now, and provide your community with the care it deserves!