How Not to Lose your Hard-Earned Money to Crypto Scammers

In the first quarter of 2022, Hackers stole $1.3 billion from INDIVIDUALS, exchanges, and dApps. If you don’t want to lose your HARD-EARNED money to crypto scams, read this guide;

Here’s what I’ll cover in this guide:

  • Mindset
  • Type of wallets
  • Protecting your crypto assets
  • Examples of Phishing tricks to watch out for
  • Resource recommendations

Ladies & Gents, Let’s get in!

First, you must understand that the security of your crypto assets is your responsibility. You and yours alone. As much as crypto exchanges, protocols and dApps have a key role in securing your assets, and the greater onus is on you.

Having this consciousness will save you from lots of pains and regrets. The crypto industry is unlike traditional financial institutions that protect and sometimes insure your funds. Here, the game is different. Master the game, and you’ll win. Else, you’ll lose.

We have two types of wallets, namely:

  • Hot wallets
  • Cold wallets

A Hot wallet is a cryptocurrency wallet that is connected to the internet. Examples of hot wallets are Metamask, Coinbase, etc. They are easy to access, and use, but are more vulnerable to online attacks.

A cold wallet is a crypto wallet that is not connected to the internet. Examples of cold wallets are Ledger, Trezor, etc. Because they are not connected to the internet, they are less-convenient and more secured.

Tips on Securing your crypto assets

i) Have Multiple Wallets

If you frequently interact with crypto platforms, it is advisable to have multiple wallets. You can prioritize what wallet to use on each platform, depending on the platform’s credibility, and your risk tolerance.

ii) Use Ledger and Metamask

Yes, you can use a hot wallet together with a cold wallet. It gives a double layer of security and protection to your funds. Here’s a guide on how to go about it here.

iii) Always revoke permissions granted

Here’s the thing, an average crypto user interacts with lots of dApps and platforms weekly. So, always ensure you review the permissions on your wallets and revoke the ones you’re not using anymore.

iv) Always Triple Check Links

As a rule of thumb, always triple-check the links you’re clicking on. Be it on Discord, Telegram, Twitter, email, ads, etc. Not all shiny offers are genuine. Discipline your thumbs.

v) Keep your seed phrases and private keys private

Just like jealously protecting your banking transaction pins, that’s how you ought to protect your seed phrases and private keys. Preferably, please write it down and put them in a safe place.

DO NOT fall into the trap of screenshotting it on your devices. Anyone that has access to your phone can easily get it. Know this and know peace.

vi) Use secure browsers and/or VPNs

The foundation of your online security is your web browsers. You need to deliberately choose web browsers that prioritize privacy and security. On a flip side, you can use VPNs to make up for the browsers by choosing efficient VPNs.

Some browsers I’d recommend are:

  • Brave
  • Firefox
  • DuckDuckGo

vii) Use Multiple Signatories

This one is for NFT enthusiasts. If you have some high-valued NFT collections, you should have multiple wallet signatories. With it, you can assign 2 to 3 wallets to approve every transaction before execution.

Examples of Phishing tricks to watch out for

Clone or fake websites

Scammers are now cloning websites using a slightly different URL. They’ll create an offer and post it to discords and other channels. Some even go as far as running adverts for the cloned website.

  • MetaMasks won’t email you

When you receive any email like this, avoid clicking on them. They’re scammers that want to have access to your wallets. These trick is also common on TradFi institutions.

I’ll end with this quote by Bruce Schneier

“If you think technology can solve your security problems, then you don’t understand the problems, and you don’t understand the problem.”

Your security is your responsibility.

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Viktor DeFi

Viktor DeFi

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Providing actionable Web3 & Defi alphas, deep-dives, trends, and frameworks. Follow me to never miss any post.