Basic Safety Principles

Cryptocurrencies have brought many interesting opportunities, but they are also full of risks and dangers for the inexperienced. Follow the three basic security principles outlined below to reduce some of the risks associated with holding, using and trading cryptocurrencies.


Support for Your Security

Due to the nature of the Internet, information can spread very quickly, and sometimes in undesirable directions.

There are many people with malicious intent who use nefarious tactics in an attempt to steal your cryptocurrency. Most threats and attacks are usually broadly targeted and work like a network, trying to lure in everyone who is gullible and inattentive enough, and not necessarily targeted individually. However, if you unintentionally share your sensitive information, more sophisticated and targeted attacks are possible.


Recommended:

  • Consider the risk of bragging about your successful trading operations;

  • Do not distribute your previously used addresses;

  • Be careful when mentioning your balance;

  • Do not distribute information that is associated with your offline identity;

  • Use encrypted communication channels.


Think a little. Those few satoshis in your addresses could be worth significantly more in the coming years. Or not. In the meantime, you can even get rid of your cryptocurrencies. But does it matter? Take note that potential attackers could be distant relatives, just envious strangers and acquaintances.


Protect Yourself

Users of both the traditional banking system and cryptocurrencies often fall victim to such scams and scams. However, when using cryptocurrencies, the burden of responsibility falls on the shoulders of the end user, mainly due to the lack of trust and immutability of processed transactions.

Banks, considered fiduciaries, have complete control over your money. They are regulated and cooperate with each other, making it easier to prevent and combat fraud. If you become a victim or make a mistake while transferring money from your bank account, you can usually ask for a chargeback. In cryptocurrencies, once transactions are broadcast to the network and confirmed, they become irreversible.

Be carefull. Learn about common phishing tactics, what keyloggers are, and many other threats covered by Binance Academy. Becoming aware of these dangers will help you keep your coins safe.

Using a strong and unique password and enabling 2FA for your account should be the first step to improving your overall security.

We should not forget about protecting ourselves from ourselves, since we tend to make mistakes sometimes. Making a typo while creating a backup, sending tokens to the wrong address, or simply making the wrong decision can compromise your security and cause a lot of inconvenience.

“Measure twice, cut once,” says a proverb that many of us heard from our parents. This is becoming increasingly relevant when it comes to using and protecting cryptocurrencies.


Be your own bank

To ensure accessibility to your coins and maximize their security, it is recommended to store your private keys offline. Although exchanges are generally much safer than they used to be, it is still recommended to only keep a significant amount of money in an exchange account if you are an active trader. Additionally, like money in a bank account, unless you actually own or have exclusive access to your private keys, you cannot claim ownership of your coins in name only.

For the first time in history, you have the chance to own a digital asset just like you would own cash or a piece of precious metal. Unlike these other forms of assets, you can back up your cryptocurrencies on a piece of paper and securely access your assets anywhere in the world.

Of course, storing and protecting these access keys to your cryptocurrencies brings a lot of danger, as stated in the previous section. Luckily, there are tools ready to help with these problems and allow you to take full advantage of these new technologies.

Mobile phone software and wallets offer a wide range of features and are usually very easy to use. The big disadvantage from a security perspective is that they are connected to complex online environments using your smartphone or PC. These factors provide many opportunities for viruses and hackers to gain access to your coins; therefore, inexperienced users should only use them to store small amounts of cryptocurrencies.

Paper wallets, which store your private keys on a piece of paper (or engraved on a metal plate), are often considered one of the most secure ways to store private keys. However, they are quite difficult to use and are usually for one-time use.

Hardware wallets tend to offer the best combination of ease of use and high security. These handheld devices protect private keys from malware and hackers by keeping them offline, but they will cost you between $70 and $200 and require physical confirmation for most actions.

Remember that security is never absolute or perfect. Take the time to update your knowledge base from time to time and regularly check your potential weak points.

This article was provided by Trezor.io