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How to invest safely
The crypto world isfull of exciting possibilities, but it’s also a dangerous place forinexperienced investors. Block-chain-powered and cryptography-secured currencyare safe, but the intermediary’s security is not always guaranteed. This meansthat the theft of digital crypto assets remainspossible. Here are some ways you can ensure some more safety when investinginto cryptocurrencies.
Maintain online privacy
Avoid unintentionally makingyourself a target for malicious individuals by revealing sensitive informationonline. Consider the risks of mentioning your balances, successful trades andsensitive identifying information online.
Use antivirus software
For added protection, installantivirus software on your devices. Antivirus software is used to prevent,detect, and remove malware.
Use 2FA
Use unique, strong passwordsand enable the 2FA (Two-Factor Authentication) protection for all ofyour online accounts. Also make sure to create a secure password for your mobileprovider account, as hackers have been known to hack into phone numbers.
Subscribe to a secure email service
A secureemail service will offer advanced security features suchas end-to-end encryption to ensure your emails and personal data areprotected from hackers.
Install a VPN
A VPN or Virtual PrivateNetwork reroutes your data traffic through a secure encrypted tunnel,allowing you to access the internet anonymously. A VPN will hide your real IPaddress and replace it with the IP address of a remote VPN server. When you login to your crypto account through a VPN connection, hackers will beunable to view your precise location or private data.
Use a separate device/ burner wallet
It may also be worthconsidering using a separate device solely for crypto-relatedactivities. And, when minting NFTs or trying out protocols, make sure todo so from a burner wallet.
Use a Crypto Wallet
It’s also a good idea to storeyour private keys offline. Exchanges are safer than ever before and as anaverage investor holding funds on an exchange isn’t a bad idea, but there arestill risks. Also, remember that you should only keep significant amounts onexchange accounts if you’re an active trader. Heres the 2 types of wallets youcan get;
- Hot wallets
A hot wallet is connected tothe internet and is the most popular place to store crypto. Examplesinclude Trust wallet, MetaMask, and Exodus wallet. However, asthey are connected to the internet, hot wallets are at a higher risk of beinghacked. Hot wallets are easy to access and therefore useful for makingquick transfers and trades. But, never store large holdings on a hot walletunless you’re actively trading or exchanging.
- Coldwallets
A cold wallet is not connectedto the internet and is, therefore, more secure. The only way to access a coldwallet is with a private key. Cold wallets are typically hardware-based USBdrives. Examples of cold wallets include Trezor, and Ledger. Werecommend cold wallets for maximum security. However, make sure to onlypurchase them from reputable websites. It’s also a good idea to keep fundsin a mix of wallets to increase security.
How to connect Ledger and MetaMask
MetaMask (apopular crypto wallet) can be used in combination with Ledgerhardware wallet for a higher level of security. To do so, complete thefollowing steps:
1. Connect your Ledger Nano toyour computer with a USB cable. Then open your MetaMask wallet in yourbrowser.
2. Click “Connect HardwareWallet” in your MetaMask wallet menu
3. Then, click “Continue” toconnect to your Ledger device and choose the Ledger account you want to connectto.
Private keys & seed phrases
A private key is an encryptedalphanumeric code. In other words, a complicated password. A seed phrase is acombination of words that can be used to access yourcryptocurrencies. Never share your private key or seed phrase with ANYONE.Write them down on paper and store them in a vault. DO NOT save them on anelectronic device.
Educate yourself
Becoming familiar with commonphishing methods will help you invest safely and keep your fundssecure. Phishing is a type of cyber attack where a scammer poses as areputable party to trick people and steal their sensitive information.Malicious actors may send legitimate-looking emails or spoof a real website andchange the wallet address to scam users.
There are many types ofphishing:
Clone phishing: thescammer will alter an email previously sent by a reputable company and includea link to a malicious site, claiming that it is an updated link.
Spear phishing: theattacker collects information about their victim and creates a message based onthis data to convince the individual to download a malicious file or visit amalicious website.
Pharming: an attackerpoisons a DNS record to redirect visitors of a reputable site to a fake onecreated by the attacker.
Email spoofing: a form ofphishing where the attacker spoofs emails from legitimate businesses. Aphishing email may contain links to malicious sites where the attacks stealssensitive information.
Website redirects: sendusers to a different URL by exploiting vulnerabilities and inserting redirectsor malware onto the victim’s device.
Typosquatting: involves directingusers to malicious websites that mimic reputable websites but insert subtlevariations in the URL to trick users.
