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Chris
Chris

Posted on • Updated on

Crypto Safety

Ok Serious talk..

As exciting and rapidly evolving as the crypto space is, there are still always the select few out to spoil the party however they can, yes i'm talking about scammers.

nft scam security essentials

I've seen just about every scam going, from fake BTC giveaway wins over direct message in Discord.. to the more elaborate social scams with people posing as 'Support' for a company like Opensea in a fake server.

I'm going to teach you the most important ways to combat scammers and make their job a hell of a-lot more difficult.

Seed Phrase

When you make a new wallet, you are often provided with a 12-24 word seed phrase, this is basically a recovery method incase you ever lose a device/need to add the wallet to a new device. NEVER EVER give your seed phrases to another soul or keep them stored in any online documents, even if your beloved kind granny asks you for your seed phrase, don't trust her - she's been compromised!

Yes, i'm telling you to revert back to the old parchment and quill =). You can even get them laminated and store them in a fireproof lockbox!

Here is a good example of storing your seed phrase in 3 parts across 3 different locations. In this scenario, a portion of the seed phrase is stored in 3 different trusted geographical dispersed locations, if you are storing with a trusted friend, they mustn't know the location of the other 2 portions of the seed phrase (only you should know that).

The seed phrase is split like this:

  • Location One = Words 1 - 16
  • Location Two = Words 16 - 24
  • Location Three = Words 1-8 and Words 16-24

Here is what planning looks like for each seed phrase in each location:

Location 1:

Ledger seed phrase location 1

Location 2 + 3:

Ledger seed phrase location 2 & 3

Laminate them and place them in a safe container in a secret spot within your trusted location.

Your seed phrase can now only be recovered by you, you're the only person that knows the 3 locations, each location is useless on it's own.

You can afford to lose only one location. Bear that in mind.

Hardware Wallet

Invest in a hardware wallet. If you revert to this posts cover image you will see a typical hardware wallet supplied by Ledger. Ledger are the most popular hardware wallets on the market and cost between £54-£110 (NEVER buy from anywhere other than their official site as there has even been reports of Amazon reselling returns and people having their crypto stolen!). The Ledger should always be factory sealed and untampered with, this is not a time to try and save £5 buying elsewhere!.

You might decide while you're still a low cap investor that it's not worth the outlay.. which of course is fine, just please keep it in mind once you feel you need to protect what you have.

So what does it do? a Ledger is basically a 'cold wallet' it remains offline and is connected to via bluetooth to sign transactions. Transactions cannot be made without the Ledger, which makes scammers jobs extremely.. physical lets say! You use an app called 'Ledger live' which just acts as a window to your coins. MetaMask and Phantom both support Ledger for approving transactions directly from the Ledger device.

Trust Nobody

Think how lovely and trust worthy your Granny is (or was). Well, don't even trust your Granny and then move forwards from there. Only you know your seed phrase, if your Granny asks for it, she's been compromised, don't trust her. Use that as your baseline of trust in the world of Crypto.

Trust nobody, no matter how 'nice' and helpful somebody seems.

Opening Links

Don't open links from E-mail, Discord, WhatsApp, SMS, MetaPunk, ANYWHERE within the browser that you have your crypto wallet extensions installed on. Use a different browser with no wallet extensions installed, always safe then, even if the links are scams.

Strange links sent to you privately are designed to try and get you to connect to your wallet and steal your Crypto/NFTs. Once again there is never any reason to give your seed phrase to anybody or let them know your QR code or login details.

Unknown Tokens in your Wallet

Overtime, you'll find that a stranger has sent some unknown NFTs or other tokens to your wallet. DO NOT interact with them. Just ignore them.

Use a 'HOT' Wallet

It is so easy to just create a new wallet in MetaMask / Phantom etc and rename it to 'HOT'. Use this to attach to projects you aren't too sure about initially (depending on what they want from the transaction), but it can also work well with white listing etc, you can always move assets over to your Ledger in the future.

Happy to answer any questions on this below, please follow these guidelines and please do not get scammed.

Discussion (1)

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lee profile image
lee

NEVER buy from anywhere other than their official site as there has even been reports of amazon reselling returns and people having their crypto stolen!

Wow!!!