Saudi Arabia is witnessing a growing popularity of cryptocurrencies, with these digital assets becoming the focus of interest for many investors and individuals. However, dealing with cryptocurrencies requires strict security practices to avoid potentially catastrophic losses. Below we present five common mistakes that some people make, as well as tips for protecting your digital wallet and the importance of using secure tools such as the Binance Web3 Wallet.
1. Neglecting to backup your recovery phrase or private keys
A common mistake is not keeping a backup of your recovery phrase or wallet keys. The recovery phrase, which is a string of 12 to 24 words, is the only way to recover your digital wallet if you lose access to it due to hardware damage or loss.
How to avoid mistake
Keep the phrase in a safe place: Write the phrase by hand on a piece of paper and keep it in a safe place away from electronic devices.
Use more than one secure location: If you manage large amounts of money, you can store backups in multiple secure locations such as home safes or bank vaults.
Do not share it with anyone: The phrase is strictly confidential and should not be seen by anyone.
Additional advice
You can resort to physical backup solutions such as metal disks designed to protect recovery phrases from fire or damage.
2. Sharing private keys
The private key is what gives you complete control over your digital assets, and anyone who gets it can access your wallet. However, some people fall victim to scams or unwittingly share keys.
How to avoid mistake
Never share your private key: Never give your key to anyone, whether they claim to be an official entity or technical support.
Verify Websites: Always verify links and websites to avoid phishing scams.
Use secure wallets: Choose a trusted wallet like Binance Web3 Wallet, which keeps your private keys encrypted on your device.
Additional advice
Use wallets that offer additional security features, such as biometric verification or multi-factor authentication, to enhance protection.
3. Total reliance on hot wallets
Hot wallets, which are wallets connected to the internet, are popular because of their ease of use. However, storing large amounts of cryptocurrency in them puts them at risk of cyber attacks.
How to avoid mistake
Using cold wallets for long-term storage: Cold wallets, which remain offline, are more secure because they are away from any cyber threats. Hardware devices like Ledger and Trezor can be excellent options.
Keep limited amounts in hot wallets: Allocate hot wallets for daily transactions only, while storing large amounts in cold wallets.
Explore multi-signature wallets: These wallets require multiple approvals to make any transaction, adding an extra layer of security.
Additional advice
If you need to use a hot wallet, Binance Wallet offers a high level of security along with the flexibility to handle decentralized applications.
4. Not updating wallet software
Error
Ignoring software updates is a common mistake that leaves your wallet vulnerable to security vulnerabilities. Updates often fix bugs and improve security.
How to avoid mistake
Enable automatic updates: If available, enable automatic updates to ensure that the wallet is always running the latest version.
Update hardware firmware: If you use a physical wallet, check regularly for new firmware updates.
Keep up with security updates: Follow wallet providers’ social media accounts and subscribe to their newsletters to get notifications of updates.
Additional advice
The Binance Web3 wallet features automatic updating, providing continuous security without the need for manual intervention.
5. Neglecting to enable two-factor authentication (2FA)
Two-factor authentication is an extra layer of security that requires you to verify your identity using a code sent to your phone or via an app. Failure to enable this feature makes your wallet more vulnerable to hacking.
How to avoid mistake
Enable 2FA on all wallets and platforms: Most wallets and platforms, such as Binance, provide this feature, so enable it immediately.
Use an authentication app: Instead of text messages, use apps like Google Authenticator or Authy, which are more secure.
Explore biometric options: Some wallets support fingerprint or facial recognition to add an extra level of security.
Additional Tip Wallet #بينانس
The Binance Web3 wallet comes equipped with two-factor authentication options and many other security tools, making it simple to enable protection.
Benefits of Web3 Wallet for Enhanced Security
Binance Web3 Wallet offers a complete experience that combines security and ease of use, and is ideal for users in Saudi Arabia. Here are its main benefits:
Simple to use interface: The wallet is designed to meet the needs of both beginners and professionals.
Multiple blockchain support: You can easily move between networks like Ethereum and BNB Chain, allowing for asset diversity.
Advanced Security Features: The wallet includes end-to-end encryption, two-factor authentication, and multi-signature options.
Integration with Decentralized Applications (DApps): The wallet allows users to interact with DeFi applications, NFTs, and other innovations.
Flexible Recovery Options: The wallet provides enhanced asset recovery solutions in emergency situations.
