It’s almost impossible to be a member of the blockchain and crypto space and not be familiar with the blockchain’s strong security. Blockchain technology offers one of the best ways to secure transactions and information, but why do we keep hearing about million-dollar scams, hacks, and thefts of blockchain-based cryptocurrencies? Aren’t they supposed to be safe and secure as well?
Well, they are but it depends heavily on us, the users.
By removing intermediaries, cryptocurrencies reduce fees and delays which makes them an attractive alternative to traditional options. But this comes with a cost: you are responsible for managing your own assets. In other words, you have to be your own bank which requires some knowledge and work.
Cryptocurrencies’ great features attracted many users worldwide and it’s not a surprise that many scammers and cybercriminals are taking advantage of this space as well. But here’s the good news: all you need to do is be aware of these attacks and follow a few easy practices to stay safe!
Here are a few tips and guidelines that will help you keep your crypto assets secure:
Phishing attacks and malicious applications are two common attack vectors that you should watch out for. In both attacks, the attacker tries to steal your personal information by luring you into clicking on a link to a malicious website or installing a fake application that seems exactly like the original one.
The best way to avoid these attacks is to check the content of your emails thoroughly before taking any action. Never click on the suspicious links in your emails and always download apps from the official websites. Installing a secure antivirus and keeping it updated will also help to avoid malware like ransomware.
Never underestimate the power of a strong password. Always use a combination of letters, numbers, special characters, and symbols. It goes without saying that using public information like your name or birthday is always a bad idea.
Try to set different passwords and never use just one password for all your accounts. You can use a Password Generator tool to create your passwords and a good Password Manager will help you keep track of all your passwords.
2FA or two-factor authentication will add an extra layer of security to your account. With 2FA, attackers need more than your password to gain access to your account. Many crypto exchanges and wallets offer 2FA so don’t hesitate to enable it. It’s a straightforward process and usually involves sending a PIN code to your phone number or an Authenticator app.
You can use this tutorial to enable 2FA for your DIFX account.
Keeping all your crypto assets on an online exchange is probably not the wisest move. It’s better to keep only a small portion of your crypto online that you can afford to lose. Save the rest in air-gapped cold storage, like hardware wallets.
DIFX has a great solution for this. By using Fireblocks services, one of the number one global custodians of crypto-assets, DIFX provides its users with fully-insured crypto wallets to protect its customers’ funds from cyber-attacks, human error, and employee fraud.
A Seed Phrase is a series of words that you can use to retrieve your private key. You should manage your seed phrase with extreme care and store it across various secure locations and devices. It’s important to have it saved in both digital and physical forms.
We may plan for a long-lasting life, but the inevitable eventually happens. It’s better to be ready and have the proper plans in place before our time is up. One way to make sure that your crypto assets won’t be gone forever is to share your private keys and seed phrase with your trusted loved ones. You can also make a plan for the location of your seed phrase to be shared with the heirs once you’re gone.
DIFX provides its customers with a tool to secure their fortune for the future. With the DIFX Nomination scheme, you’ll be able to pass on your crypto assets to your family and loved ones. Read “Fear not, your digital assets are secured even after your death!” article to learn more about DIFX Nomination Scheme.
You can always make a small transaction to just test the network before engaging your funds completely. Try to use QR codes for the transaction address and always double-check the address after copy-and-pasting to avoid Clipboard Hijackers attacks.
Cybercriminals are everywhere, waiting to target their next victim. Never share your crypto holdings in conferences, meet-ups, or online forums and social media. Especially don’t mention the online exchanges your crypto is stored on. You can also keep your assets in different wallets to minimize the risk.
And last but not least, always Do Your Own Research. Whether it’s an investment opportunity or a new crypto exchange you want to try, research on your own to make an informed decision. Simply put, don’t trust or follow others blindly.
Always check out the official website and social media accounts, the project’s team members, and the white paper, and trust your instincts. If something sounds too good to be true, it probably is.