Guide: Crypto Wallet Tips 101 - Do's and Don'ts
Becoming a crypto super hero can be an exhilarating and rewarding journey.
It's critical to grasp a solid understanding of crypto wallets.
Without such, a wallet can be quickly emptied.
There is no help line to call or way to reverse a transaction.
Remember, only you can defend yourself with knowledge.
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"With great power comes great responsibility"- Peter Parker Principle
Listed in order of what not to do along side with the correct action to do.
⚔ | ✅ |
Send a transaction blindly | Double check the cryptocurrency type, amount, and destination address |
Send a large amount to new address | Send a small test transaction firstly |
Type a complicated long address | Avoid typos by using a QR scanner or copy/paste an address |
Leave your wallet unattended or unlocked | Logout or lock your wallet/device |
Blindly trust downloaded wallets | Verify the authenticity of a wallet's hash |
Store large amounts of crypto on an exchange or your phone/laptop | Store crypto on a dedicated hardware wallet aka Cold Storage |
Use an exchange or 3rd party as a wallet | Reduce counterparty risk by using your own wallet |
Carry around too much on mobile wallets | Store only what you need for everyday spending on mobile wallets |
Use simple to guess/lazy passwords |
Elaborate scams or impersonation attempts are common schemes used by fraudsters to steal your private keys. Don't fall for it!
⚔ | ✅ |
Type/take a photo/save your seed phrase or private keys anywhere online | Always keep your seed phrase or private keys offline |
Share your seed phrase with anyone | Understand that anyone, with your seed phrase, can spend your funds |
Forget your seed phrase/private keys/wallet PINs | |
Only have one copy of your seed phrase | Keep multiple copies stored at multiple locations |
Only have a seed written on paper. |
⚔ | ✅ |
Click unknown links that might steal your crypto (phishing) | Verify the correctness of a website's address |
Use a wallet on an old device which may be full of vulnerabilities | Keep your phone/laptop up-to-date with security patches |
Make transactions over public WIFI | Make transactions in a safe environment or over VPN |
Use phone number based 2-factor authentication | Use Authy or OTP-based 2-factor authentication |
Use your personal email for crypto | Use a separate dedicated email for crypto |
Make transactions on insecure websites with only HTTP in the web address | Check for a padlock meaning the website is secure |
Mix personal/work devices with lots of crypto | Use a device solely for the purpose of transacting crypto |
Have any more tips? Feel free to contribute.
Last modified 2yr ago