How To Keep Your Crypto Safe

如何保护您的加密货币

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<h2>Safeguarding your Crypto Assets </h2>
A distinctive feature of crypto is the ability to be your own bank. Taking responsibility for your capital instead of entrusting it to a third party means taking responsibility for your own capital. This is a large tenet of the blockchain community that has risen up in opposition to traditional banking.
 However, this dogma also has some drawbacks. Firstly, being your own bank using crypto comes with a high degree of responsibility. When you hold your own cryptocurrency, you are solely responsible for securing it, managing it, and protecting it from loss or theft. This means that you must be very careful with how you store and use your crypto, as any mistakes or oversights can result in irretrievable loss.
In addition to that, being your own bank also means you need to be very adept in all the technical aspects in relation to managing your crypto assets, which can be daunting, especially if you are still relatively new to the world of crypto. You will need to take time to understand terms such as private keys, public keys, software wallets etc. At first glance, these terms may seem theoretically easy when you read them online, but it can be a lot more challenging when you apply them practically.
Now, how do we solve this issue? 
<h2>Getting into Crypto </h2>
The most important step to starting off your crypto journey is to learn how to store your crypto safely first. Keeping your funds determines the entry point where bad players can access your funds. The first thing they need to know is where your funds are, everything else is just how to get there. 
But when you think of the "where" in terms of crypto, things get confusing. It's not the same as storing a tangible asset like a gold bar because crypto exists on the public ledger of the blockchain. You can't simply lock that away in a safe! When you store crypto, what you're really protecting is the keys that give you access to your funds. This is where the term not your keys, not your coins comes from. You can think of your private keys as the things that make the tokens yours. Your crypto is connected to a wallet, and this is effectively the place where your crypto exists from a practical perspective.
 If you have access to a wallet you have access to the funds. Each wallet type comes with differing levels of security and practicality. Balancing between practicality and security is the standard by which you manage your funds.
<h2>3 Different Types Of Wallets</h2>
There are 3 types of wallets to store your crypto and they are: custodial wallets, hot wallets, and cold wallets. In many cases, people compare custodial wallets with cold wallets on a scale where cold wallets are the most secure but least practical. 
1. Custodial/ Centralized wallets 
They are digital wallets managed by a third party, like a bank. They are easy to use, and you can usually get also a debit card connected to your account. But you don't control your private keys, so you don't technically own the assets. If the exchange goes bankrupt, you could lose all your assets.
2. Hot wallets
Hot wallets are any wallets used on devices that connect to the internet. Because a hot wallet can connect to the internet, you can quickly access your funds and create new transactions. This makes hot wallets great for everyday use. Software wallets like mobile, desktop, and browser-based wallets are hot wallets because the device the wallet is stored on can connect to the internet. They are considered less secure because wallet information and data are stored on devices that can access the internet. This introduces the risk of being exposed to malware, hackers, and online threats. 
3. Cold wallets
A cold wallet is a crypto wallet that can't access the internet. With cold wallets, the secret recovery phrase is generated offline. This keeps it safe from online threats. Because the secret recovery phrase is never exposed to the internet, cold wallets are more secure than hot wallets. There are two main types of cold wallets, which are hardware wallets and paper wallets.
<ul><li>Hardware Wallets </li></ul>
They are small hardware devices that store your secret recovery phrase offline. To access the funds in a hardware wallet, you need to connect it to another device, like a computer. A hardware wallet provides top-level security because the secret recovery phrase and private keys never leave the hardware wallet. This means the information that controls access to your funds is never online, which protects it from malware, hackers, and online threats.
<ul><li>Paper Wallets</li></ul>
Paper wallets are generated offline, and the secret recovery phrase, private keys, and addresses are written down and stored on paper. By generating the secret recovery phrase offline, the wallet is protected from online threats. The downside is that funds stored with a paper wallet are not readily accessible, because you need to import the paper wallet into another wallet, such as a hardware wallet or hot wallet, to access your funds.
<h2>General Safety Tips</h2>
<ul><li>Protect your devices: Many hacks come from easily detected viruses such as keyloggers and ransomware. Use trusted antivirus software on all the devices you have funds. You should also give your system a thorough scan with the antivirus software at least twice a month.</li></ul>
<ul><li>DYOR: A common phrase used by crypto traders everywhere that simply means carrying out complete due diligence into a project before investing. You can do this by reading the white paper of a particular crypto project, researching the content of the website or social media channels or engaging with the community to get the inside scoop of the project. By getting as much information as you can on a project, you can make a better judgement of the project and possibly avoid potential rug pulls.</li></ul>
<ul><li>Create strong passwords: A good password is always your first defense. Choose a password with a variety of letters, numbers, and symbols. Use a unique password for each wallet, if someone gets one password you don't want them to have access to all accounts. When available, use 2FA. This gives a second point of verification by creating a code to enter alongside your password. The most common 2FA app is Google authenticator.</li></ul>
<ul><li>Keep seed phrases private: Store your unique phrases on a physical piece of paper, and keep it in a secure location. Don't tell anyone where this is or how to access it. These phrases will be the only way to recover your funds should something happen, like losing your wallet.</li></ul>
<ul><li>Diversify: You don't want all your eggs in one basket, or even one type of basket. Distribute your funds over different wallets both physical and digital, using a variety of exchanges, and hold a variety of crypto assets. This keeps a single disaster from wiping out all your funds.</li></ul>
<ul><li>No public internet: Don't connect a device with your funds to a public connection. Anyone connected to the network can identify your computer, and potentially cause harm</li></ul>
<h2>Avoiding Crypto Scams</h2>
There are many types of crypto scams. Some of the most common include: 
<ul><li>Phishing scams</li></ul>
Crypto phishing scams often target information relating to online wallets. Scammers target crypto wallet private keys, which are required to access funds within the wallet. They would send an email to lure recipients to a specially created website asking them to enter private key information. Once the hackers have acquired this information, they steal the cryptocurrency in those wallets. 
<ul><li>Pump and dump schemes</li></ul>
This involves a particular coin or token being hyped or shilled by fraudsters through an email blast or social media such as Twitter or Telegram Groups. Due to FOMO ("Fear of missing out"), traders rush to buy the coins, driving up the price. Having succeeded in inflating the price, the scammers then sell their holdings – which causes a massive crash as the asset's value sharply declines. This phenomenon has occurred countless times in crypto projects with no intrinsic value. 
<ul><li>Fake celebrity endorsements</li></ul>
Crypto scammers sometimes pose as or claim endorsements from celebrities, businesspeople, or influencers to capture the attention of potential targets. Sometimes, this involves selling phantom cryptocurrencies that don't exist to novice investors. These scams can be sophisticated, involving glossy websites and brochures that appear to show celebrity endorsements from household names such as Jackie Chan or Elon Musk. 
<ul><li>Giveaway/ Airdrop scams</li></ul>
This is where scammers promise to give you free cryptocurrency of an emerging hyped project. Clever messaging from what often looks like a valid social media account can create a sense of legitimacy and spark a sense of urgency. This supposed ‘once-in-a-lifetime’ opportunity can lead people to transfer funds quickly in the hope of an instant return.
There are a few things that never occur in a legitimate crypto airdrop to keep in mind. They are:
<ul><li>Unsolicited deposits into your wallet. Legitimate airdrops will not occur without you being notified.</li><li>Airdrops that ask you to attach your wallet to a website in order to receive the coins. This is not a common practice and the website you tie your wallet to could be spoofed.</li><li>Capital investment as the incentive to receive the airdrop. Legitimate coins will not seek capital investments in exchange for airdropped crypto.</li></ul>
<h3>Final Words</h3>
The blockchain and crypto industry is currently still at its nascent stage with no formal regulations as of today. Due to this, there are many unscrupulous players in the industry that are always looking to make a quick buck by capitalizing on the carelessness of others.
 To counter this, you need to always practice keeping your crypto safe at all times. Using the cold storage method is the safest way to store your keys, but at some point, you will have to connect your storage device or enter your keys to access your crypto.
 To solve this, you can opt to using an offline device only when you need to access and use your keys and then store the device in a safe place to prevent hackers from stealing your crypto.

Public Relations @ MaskEX Global

Ayman Shaat

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