Best Practices to Keep Your Crypto Safe
Use a Cold Wallet for your Crypto
Cold wallets are not connected to the internet unlike hot wallets, therefore they also not prone to cyberattacks.
Use Secure Internet
Make sure your internet connection is secure and use a secure VPN connection. Avoid public networks.
Maintain Multiple Wallets
Diversify your crypto investment across multiple wallets. Use cold wallets for funds you do not need to access and multiple hot wallets for the crypto you use for dApps, buying NFTs etc. Do not put much of your crypto in online wallets – only what you want to use. Store the rest of your crypto in a hardware wallet. Split your funds among many hot wallets (online wallets) and cold wallets (hardware wallets).
Protect your Passwords
Never ever share your passwords or passphrase. Choose strong passwords and do not use the same passwords. Change your passwords regularly. Store your passwords and passphrase offline – safe and secure.
Beware of Phishing
Avoid any unknown or suspicious links. Do not click on links, sent via Discord/Email/etc.
Protect your Devices
Keep your antivirus software active – on your computer as well as your mobile device.
What are Warning Signs for High Risk dApps?
- Guaranteed great returns with little danger of failure.
- Deny decentralized and transparent operations while making claims to the contrary.
- Irrespective of market conditions, a steady stream of returns.
- While claiming to be working with well-known wallets and exchanges, they are not.
- When asked critical questions they will mute you or kick you out of the channel.
How can I Protect my Cryptocurrencies?
When it comes to protecting your crypto, a wallet is one of the greatest methods to go. However, new wallet designs are being introduced on a regular basis. Hardware devices appear to be the better of the two.
Coins and tokens can be stored in these “cold” wallets, which seem like USB drives. Private keys are password-like codes that allow you to decrypt your hardware wallet and access the coins or tokens it holds. While hardware crypto wallets are extremely successful against digital hackers, there is a risk: If you lose your password key, you most likely won’t be able to access the wallet’s contents again
These wallets are also not the best choice, for the funds you would like to use in dApps, as you will need to have them on your web3 wallet for direct usage.
What is the Safest Crypto Wallet?
Crypto wallets are generally safe irrespective of the brand. However, available popular safe crypto wallets include hot wallets like Trust wallet and Metamask as well as cold wallets like the Ledger Nano S or Trezor. The latter wallets especially have a reputation for keeping your crypto assets safe from theft by hackers while warm wallets will be useful for instantly exchanging one cryptocurrency for another and accessing dApps. In short, the safest crypto wallet you can own is a cold wallet (hardware wallet) but the best option is to use multiple hot and cold wallets.
Besides utilizing cold wallets there are many practices that further increase your safety, follow the following steps:
FAQs
Cryptocurrencies currencies can be stored in the hands of third parties, or they can be stored on an online platform that only the user has access to, such as a centralized exchange like Binance. The many crypto exchanges which you may utilize have shown to be prone to security breaches, therefore it makes sense to keep your cryptocurrency out of these accounts and stored on a cold wallet (crypto hardware wallet).
Popular hardware wallets:
- Ledger
- Trezor
Currently this is the safest way to store your crypto. When ordering such a wallet, be sure to order them directly from the original seller and avoid Amazon or other retail services.
Coinbase remains one of the safest web wallets you can use to store your crypto, despite the fact that no online exchange is completely secure. Nearly all of Coinbase’s assets are stored in cold, non-accessible storage to prevent or reduce the possibility of a hack.
All over the internet, you’ll find scam schemes and fraudulent entities involving cryptocurrencies and Bitcoin. Also, it can be tough to tell apart a crypto scam from a legit crypto investment opportunity because scammers improve their techniques often. Forget about the safety nets that banks and other financial institutions provide – this is still like the Wild West and with freedom comes responsibility. You are responsible for keeping your information and funds safe.
DApps are more secure than traditional applications since they don’t have one point of failure, unlike single-server apps. Security for dApps is crucial since they run in a completely distinct environment and work in a different way.
When it comes to choosing trustworthy dApps, you can come to us for anything gambling related or use other sites such as Rugdoc for DeFi dApps.
Reviewed and Fact Checked by Vlad Hategan , NFT Gaming Specialist