https://cryptoslate.com/crypto-losses-hit-67-million-in-february-pushing-yearly-losses-to-200-million-immunefi/It is very important to create a reminder about accounts security to avoid and minimize loses to the bearest minimum. Hearing about these great losses in crypto is frightening. Let us all be guided so as not to lose our assets to hackers and scammers . hackers and scammers do not hesitate in restrategizing means to overpower every security protocol put in place to guide our investments and assets.
In 2023, it is estimated around $2 billion was lost by investors to scams, rug pulls and hacks. Although the technology is becoming more secure and stable it is pertinent to enlighten users on how to secure their portfolios and many users are more aware of the tricks used to steal assets, there are still ways for thieves to extract your crypto if you aren’t careful.
These are some the do's and don'ts to protect your crytocurrency from hack and scam:
1. Do not store your password and seed phrase on the Cloud
Cryptocurrency wallets store users’ public and private keys while providing an easy-to-use interface to manage crypto balances. These exchanges require you to create an account with a password, and wallets give you extra security through the use of a seed phrase. Seed phrases are a sequence of random words that store the data required to access or recover cryptocurrency on blockchains or crypto wallets. Hackers will often attempt to steal these in order to gain access to your crypto and steal it.
2. Use a hardware wallet instead of an exchange
This is a device such as a USB thumb drive that securely guards a crypto user’s private cryptographic keys in offline or “cold” storage, ready to be used online to complete a crypto transaction whenever you are ready.
Pros: Cannot be accessed by anyone online and is completely secure from online attacks, also prevents loss of crypto from exchanges collapsing
Cons: Could be lost or damaged physically, rendering the crypto useless (although some come with backup features now)
3. DYOR – Do your own research
A rug pull is a scam where a cryptocurrency or NFT developer hypes a project to attract investor money, only to suddenly shut down or disappear, taking investor assets with them.
Here are the things to look out for when thinking of investing in a new or unknown crypto:
– Developers
– Whitepaper
– No liquidity locked
– No external audit
4. Verify fake apps and fake crypto exchanges
These fake apps can be used to steal money, cryptocurrencies or seed phrases and passwords. The best way to avoid these scams are:
Never search for crypto apps directly from an app store. Always find the direct download link or redirect link to the app store from the company’s official website or whitepaper.
Check for the number of app downloads and number of reviews – if these are low this is a red flag
Check the developer of the app, this should be verifiable and come from the official company. Check for spelling mistakes and also other apps made by the developer.
5. Extra security measures
Never click links on emails you are unsure of where they originate from.
Set up Two Factor Authentication (2FA), this means hackers would need your phone to hack you even if they have all your other account details.
Don’t click popups or links that come up on the internet or social media
Be cautious of any messages you receive from people who say they can ‘make you money fast’. These have become popular across social media and utilize fake accounts to try and get your money.
Finally, no crypto protocols or their customer support staff will ever ask for this information from you, so if someone asks for it they are trying to steal your crypto.