Staying safe and securing assets
When anyone starts their crypto journey, they first need to take some time to research how to protect themselves and their crypto assets. Luckily, we made this article to cover the basics.
For any newcomers reading this, we know crypto is an exciting world, and you can’t wait to get out there, but remember: The crypto and NFTs in your wallet are your responsibility, and therefore you’ll need to look after them. So please, make sure you stay safe on the chain. Here are some key terms to staying safe and securing assets online:
Backups — Dude… Where are my keys?
We’ve all heard the stories of people who lost their keys and threw away fortunes through careless actions. We’re sure you don’t also want to end up central-spread telling your story of how you managed to fumble the bag and lose access to vast wealth. So let’s talk about backups. You’ll be given a 12-word backup phrase when you create your wallet (also known as a ‘seed phrase’). This acts as a password and means if you ever lose your phone, computer, or hardware wallet, assets could be recovered by entering this phrase. Looking after this is vital to ensure long-term success — especially If you’re planning to HOLD. There are many available options for backing up seed phrases. Still, we would recommend physical backups that are not at risk of being lost to fire or water damage in catastrophic events. Also, it can be a good idea to have several copies of the seed phrase and perhaps give one of them to someone of total trust to keep it safe.
Split Holdings — Don’t put all your eggs into one basket!
So we’ll jump right in with a basic one. We are sure you have at some point heard the phrase — ‘don’t keep all your eggs in one basket.’ This is fantastic advice for crypto safety. As we all know, at the end of the day, your coins are only as safe as your wallet. So, if you are ever unlucky enough and find yourself with a compromised wallet, you’ll thank yourself if you’ve still got backup wallets containing funds and won’t have lost everything. It might be a pain to set up, but certainly something we would recommend for anyone with significant funds invested.
Phishing — BAYC owners read this one twice.
The unfortunate truth is that in crypto, there are a bad bunch of people who are out to steal your coins, NFTs, and anything else you have of value. The most common way this happens is through phishing. This is the process of getting someone to give up vital and confidential information by tricking them, most commonly through fake admins or fake websites instructing you to share your seed phrase.
Fortunately, they can be avoided if you just ignore all unsolicited messages incoming from strangers. Just like unsolicited emails, they’re, more often than not, going to be spam. Remember, admins never ask for the seed phrase!
Avoiding lost funds — ‘This transaction is taking suspiciously long…’
Whenever conducting a transaction on the blockchain, remember to double-check these few things before hitting send.
- Make sure the addresses match their desired destinations. It’s best to avoid sending significant transactions until you have confirmed the address is correct. This can be done through extensive checks, but doing a test transaction before any large transfers is also recommended.
- Ensure you are using the correct network. When transacting between DEXs, CEXs, and external wallets, you need to make sure you are sending via the right network. For example, it is no good sending BSC USDC to an ERC20 CEX wallet as these funds may be stuck and either lost or very costly to return.
We know the crypto world already seems daunting, and the following may have left you worried about taking the plunge, but please take our word for it; if you follow the basic safety guides outlined above, you won’t go far wrong.
We hope this article was helpful to you, and please follow our social networks to stay up-to-date.
Telegram main group: https://t.me/LiquidCollectibles
Telegram news channel: https://t.me/LiquidCollectiblesNews
Thanks for reading, see you next time monsters!