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Warning: Your Crypto is at Risk!

Warning: Your Crypto is at Risk!

Chris Campbell

Posted March 20, 2024

Chris Campbell

One blink of the eye.

In crypto, that’s all it takes to either make or lose a fortune.

That’s what makes this nascent industry both exciting and dangerous. 

And as the allure of quick riches draws in more and more people, it's crucial to remember that this digital Wild West is also a hunting ground for hackers, scammers, and all sorts of unsavory characters.

If you're new to crypto, or even if you've been around the block a few times, it's time to pay attention to the importance of securing your digital assets.

That’s why we put together a quick crypto security checklist. 

Here’s The Thing

Let's face it, many people who strike it rich in the crypto world don't manage to hold onto their newfound wealth for long.

I recently met a guy who put $50,000 into crypto, saw it go to $12 million, did nothing, and watched it drop back UNDER $50,000.

We call that “round-tripping.”

The most famous example is the Dogecoin Millionaire. He put his life-savings into Doge, rode it to $3 million, then watched it crash down to where he bought it.

But that’s just one way you can see your gains get blasted.

From not knowing when to sell, to falling victim to hacks and scams, to getting tangled up in tax troubles, there are countless ways to watch your profits disappear.

Your biggest threat right now, though, is people trying to steal your funds.

So, it’s time to consider:

Just how secure are your crypto holdings?

We've put together a handy guide to help you gauge your level of security.

If you find yourself falling short, don’t panic.

Instead, take action.

This may mean investing in a hardware wallet, setting up dedicated accounts for different purposes, or simply taking the time to educate yourself on the latest phishing tactics.

In the world of crypto, knowledge is power, and complacency is the enemy.

By staying informed, maintaining a healthy level of skepticism, and implementing even slightly above average security measures, you'll be well on your way to safeguarding your digital assets from the many threats lurking in the shadows.

(I’ll go into more detail on some of these over time.)

Remember, the responsibility for securing your digital assets ultimately falls on you, so prioritize security and stay vigilant at all times.

I’ve included the checklist below. If you’d like to print it out, here’s a PDF version.


Crypto Security Checklist:

Wallet:

[ ] Use a hardware wallet (cold wallet) for storing the majority of your funds

[ ] Keep your recovery phrase or private key separate from your hardware wallet

[ ] Store a backup of your seed phrase or private key in a secure, offsite location

[ ] Consider using a multi-signature wallet for added security

[ ] Set up arrangements for your crypto to be passed on to your heirs in case of emergency

Accounts:

[ ] Use separate accounts for different purposes (e.g., hot wallet, cold storage, DeFi, NFTs)

[ ] Secure each account with a unique seed phrase

[ ] Keep only a small amount of funds in your hot wallet for interacting with risky or untrusted sites

[ ] Ensure your cold wallet never interacts directly with smart contracts

Transactions:

[ ] Learn how to read and understand transaction details (etherscan.io for Ethereum, for example)

[ ] Always verify smart contract addresses on a block explorer before confirming transactions

[ ] Develop the discipline to thoroughly check every transaction

[ ] Consider using advanced tools to preview or simulate the effect of transactions before confirming

Computer Security:

[ ] Use a separate, dedicated computer for crypto transactions

[ ] Install antivirus software, a VPN, and keep all software up to date

[ ] Avoid general browsing and only visit trusted crypto websites on your dedicated device

Phishing Education:

[ ] Familiarize yourself with common crypto scams (e.g., fake airdrops, impersonated accounts)

[ ] Bookmark trusted crypto websites and always double-check URLs and social media profiles

[ ] Develop a healthy skepticism and resist pressure tactics and FOMO

[ ] Establish a network of trusted contacts for second opinions or analysis

[ ] Create a set of security questions that only your trusted contacts would know the answers to

Additional Security Measures:

[ ] Enable two-factor authentication (2FA) on all crypto-related accounts, app-based not text-based

[ ] Buy a couple of Yubikeys (yubico.com) to secure your Coinbase account, password manager, email accounts, and more.

[ ] Avoid sharing sensitive information, such as your holdings or private keys, with anyone

[ ] Regularly update your passwords and use a password manager to generate and store strong passwords

[ ] Stay informed about the latest security threats and best practices in the crypto world


Hope this helps!

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