The high profile hacking this month of the Poly Network (600 million) and the Liquid Exchange (100 million) has again reminded us to take security seriously when it comes to cryptocurrencies. Despite these high profile hacking however, the price of cryptocurrencies still continues to rise.
Now is not the time to give up on crypto especially if you are a long term investor. If you plan to keep your crypto long term, I highly suggest you follow these recommendations:
1. Store Coins in a Hardware Wallet
Unless you are about to perform a buy/sell transaction, you should always keep your coins securely in your own hardware wallet. Take a look at the ones from Ledger (Nano S and Nano X). These devices are so secure that they can keep your coins safe even if your exchange is hacked or if your PC contains malware. This is because your private keys only resides on your hardware wallet and is never exposed to your PC. Your recovery phrase is also displayed in the hardware wallet screen and are not transmitted to your PC. If you ever lose or damage your hardware wallet, you can buy a new one and restore your keys to it with your recovery phrase.
2. Move Coins to Exchange/Platforms only temporarily
If you want to perform transactions on your coins (e.g. buy/sell), most of the time this can only be done on your exchange/defi platform. In these cases, if your coins are in your hardware wallet, simply move them to your exchange/defi platform and perform your transaction. After you complete the transactions, remember to move back to your coins to your hardware wallet for safe keeping. Never leave your coins in the exchange long term unless you are ready to lose them.
3. Observe Proper online habits
Your online habits will ultimately determine whether you will get scammed or not. Attackers may choose to get to you directly through phishing mails and social engineering. Remember not to open links or emails from unknown/suspicious sources. Try to keep your personal information private and do not disclose too much information about yourself online. Hackers may attempt to take advantage of whatever information you post online and may use it for identity theft or even conventional mugging.
4. Crypto Giveaways and Fraudulent Support
Scammers will try to get your coins through various means. They may ask you to transfer coins to them to get giveaways or to enter your recovery phrase onto a website to fix an issue you are having. Take note that there will never be crypto giveaways requiring you to put in your coins. You should never share your recovery pass phrase to anyone including legitimate tech support. These are just 2 scam methods. Just remember, if it is too good to be true, it probably is a scam.
The world of cryptocurrency is an exciting place today with projects kicking off and prices going up. Unfortunately, this kind of success also attracts criminal minds. Nevertheless, as long as you stay safe and follow these recommendations, you should do just fine.
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