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Top 4 Ways to Stay Safe in Crypto


  4 Ways to Stay Safe in Crypto.

crypto scam, crypto hackers, how to stay safe in crypto

Online safety is paramount in this digital age, especially when investing and storing wealth in crypto assets. In today's article, we will teach you 4 Ways to stay safe in crypto.

The crypto market is full of scammers

Digital assets are censorship resistant by design, giving private key holders full control over their crypto. The only caveat is that investors are solely responsible for the protection and safekeeping of their funds.

The crypto community is growing exponentially, with a total of over 100 million users currently. As of 2021, at least 14 million users are reportedly new market players drawn by the excitement of the last bull cycle and willing to invest in their future. These new crypto users can be easy targets for cybercriminals and scammers if they don't follow basic online security protocols and crypto best practices.

According to the latest Ciphertrace findings, "2020 Cryptocurrency Crime and Anti-Money Laundering Report," more than $1.9 billion in crypto assets were stolen last year through hacking, scams, and fraud. This figure fell from $4.5 billion the previous year.

Of these, exit fraud and decentralized finance (DeFi) hacks were highlighted as the top causes of crypto theft. “Major exit scams have dominated cryptocurrency crime for the past two years. In 2019, the PlusToken Ponzi scheme earned $2.9 billion from exit scams or 64% of the year's major crime volume. In 2020, "WoToken is a similar scheme run by the same people as PlusToken, which 'defrauds investors' of $1.1 billion in exit scams - 58% of 2020's major crime volume. 73% of total crime in 2020 even if it decreased. builds reputation.”

The last year has also seen an increase in sophisticated phishing attacksfake emails used to distribute malware or trick victims into handing over their cryptos, passwords, and personal information. In July 2020, Twitter was the target of one such attack, which allowed a group of hackers to access more than 130 high-profile accounts and use them for a bitcoin giveaway scam. Apple, Uber, Ripple, Binance, Elon Musk, Barack Obama, Bill Gates, Kim Kardashian, and even CoinDesk were among those affected.

How to stay safe in crypto?

1. Be aware of these  common crypto scams:

Fake Crypto Giveaways:

Crypto donation scams are online posts, often on social media, that invite users to deposit cryptocurrencies to an address with the promise that the sender will receive twice or more. This type of scam has been around since the initial coin supply boom in 2017 and tends to follow a very strict format. This allows you to easily spot crypto scams once you know what to look for.

  • They use the identity of famous celebrities or business icons to support scams. Most of the time this is done from fake social media profiles or fake accounts (blue arrow.) But last year's Twitter hack used real accounts, so you always need to be alert.
  • Crypto gift scams ALWAYS promise to refund you more money than you deposited, but this is a complete misrepresentation and you should never send money to the given address.
  • Scammers use other fake Twitter accounts (red arrow) to fill their comment sections with messages that support the scam offer and confirm that it's working. After a short time, fake user accounts are usually deleted.
  • Twitter scam bot account deleted
  • The best way to detect a scam is to look for minor changes to the profile username. In the example above, the scammer created an account with the Twitter account @Elonmmusk. The extra "m" is thin and can be easily overlooked at a glance. Verified Twitter accounts also have blue checkmarks next to the account name to help users identify legitimate accounts.

Trading bot scam:

Another classic crypto scam is fake trading bot websites. These are platforms that promise users extremely high rates of return every month. These websites work like a Ponzi scheme – where the fresh money that goes into the scam is used to pay people who have already invested in the scam. Once the creators of the platform have amassed enough money, they usually disappear along with the investors' money and shut down the website.

One of the most famous examples is Bitconnect. This platform promised investors 40% returns each month and additional interest to those who invested larger amounts. The platform has been around for more than two years, and its native token has become one of the top 10 cryptocurrencies before regulators finally shut it down. More than $250 million was allegedly stolen when the creators of Bitconnect disappeared.

Here are some revealing signs of a scam crypto trading bot platform:

  • Usually, you won't find any information about the team behind the platform. If the platform has a team page, check if team members have Linkedin, email, or Twitter accounts linked. You can also try searching for people online to see if they are real people.
  • There is no information or documentation on how the trading bot works.
  • It is common to see a few typos on the website.

Phishing emails

Phishing scams are getting harder to detect as malicious agents take more care in creating genuine-looking emails from legitimate companies. Many will encourage people to click on links that instantly infect the device with malware, giving the perpetrator full access to the information stored on it. Other phishing emails redirect users to fake websites and ask them to reset their passwords, send money or re-authenticate their keywords.

When faced with a suspicious email asking you to disclose sensitive information, send payments, or click links, it's important to remember three basic rules:

  • Always check the sender's email address.
  • NEVER open links from an unknown sender.
  • NEVER share your personal information, passwords, or keywords with anyone. if you are never sure

2. Never make a digital copy of your crypto portfolio details

One of the biggest mistakes made by crypto first-time and experienced users is making digital copies of crypto wallet passwords, seed words, or backup codes. Digital copies can be any of the following:

  • Take a screenshot using your laptop or desktop computer
  • Take a photo with your mobile phone
  • Copy and paste the code into an email, notepad app or anywhere on your device
When you make a digital copy of your sensitive information, you risk a hacker accessing it through malware, brute-force attacks, and other attack vectors.

The best way to copy and securely store your encryption information is to write it on paper or burn it on metal plates, away from people and cameras. Providers of this solution include:

3.Always Enable 2-Factor Authentication Whenever Possible

When opening a new crypto account, it is important to enabling two-factor authentication (2FA) if the option is available on the platform. 2FA is a verification process that usually requires two or more pieces of information from two different devices to grant access to an account.

While there are several different methods of doing this, including receiving an SMS or email code, the vast majority of crypto platforms require the user to download a third-party mobile app that logs into the new account and generates a random, self-destructing message. . , a six-digit password that is renewed every 30 to 40 seconds. This adds a vital second layer of security to any service and makes it much more difficult for a malicious agent to gain access.

The main 2FA applications that are broadly compatible with crypto websites are:

  • Google Authenticator
  • authy

Download the 2FA app supported by the platform you are using to set it up. Once this is done you need to go to your online account settings, find privacy settings, then click "Enable 2FA". Find the install option via a QR code and click on it.

Next, go to your 2FA mobile app, and find the “+” icon followed by the “Scan QR code” button. Click on it to open your smartphone's camera. Just hover over the QR code that appears on your laptop screen and it will automatically add the account to your 2FA app and a password will appear.

When you first set up 2FA, you must enter the password in your account settings as it appears on your mobile app. This will then enable 2FA on your account. Once completed, you will need to enter your login password and 2FA password each time you log in to this service.

4. Use a different password for each crypto platform you use

So you've enabled 2FA on all your crypto accounts, copied all your sensitive information onto paper or metal plates, and are now always on the lookout for possible crypto scams. That's all great, but imagine if one of the websites you use now accidentally leaked customer information, including your email address and password. Let's say you use the same email and password for all your accounts, including those for which you don't have 2FA enabled. Now you have a problem.

Using different passwords for all your crypto accounts is key to reducing the impact of data breaches and leaks on your online security. If you have multiple accounts and have trouble remembering several different passwords at once, there are a number of browser extensions and free password manager apps for your platforms that you can use and create.

All you have to do is set a master password to access the app and all password data stored in it. Most password managers automatically fill in the previously saved login information when you arrive at a platform and prompt you to save the new login information in your vault when you create it.

Major password management services include:

  • Final Pass
  • 1Password
  • dashlane
So remember, while there are many lucrative opportunities in the crypto space, there are also countless scammers and cybercriminals who want to steal your digital assets. Be careful, follow these simple steps, and always make sure you do your own diligent research before doing anything with your money.