One of the most important points to consider in the cryptocurrency universe is the security with which you handle your assets. A simple oversight can lead to the total loss of funds, so understanding the most common mistakes and how to avoid them is essential.

In this article, we will cover five of the most well-known mistakes that crypto investors should avoid with their wallets, and, right after each of these mistakes, we will present tips so that you can then keep your wallets safe.

1. Not backing up your wallet

One of the most important practices in securing a crypto wallet is to perform regular backups. Failure to do so can lead to loss of access to your funds if there is a problem with the device where the wallet is installed.

And then, from a “safe haven”, your wallet will turn into a sure nightmare.

  • Solution: Keep an offline backup of your keys and seed phrase in a secure location, such as a sheet of paper in a safe. This way, you have a backup copy that you can recover in the event of any type of loss of access.

2. Share private keys

Private keys are like the password to your bank account. If someone has access to them, they can move your funds without your permission. Unfortunately, many crypto newbies make the mistake of sharing this information on social media, emails, or messaging apps, which leaves their assets extremely vulnerable to hackers. Don’t do this under any circumstances.

  • Solution: Never share your private key or seed phrase with anyone, not even with people or platforms that claim to be trustworthy. Store this data in a safe place, preferably offline and away from devices connected to the internet.

3. Use only hot wallets (online)

There are basically three types of wallets, depending on their internet connection: hot wallets are those that are completely online, cold wallets are those on external devices that are not connected to the internet all the time, and warm wallets, which are a hybrid between these two categories.

When we talk about hot wallets, we are talking about those that are connected to the internet, like apps and browser extensions. Although they are convenient for quick transactions, they are more vulnerable to attacks because they are connected to internet networks.

  • Solution: For added security, use offline wallets (or cold wallets), such as physical devices. These wallets store private keys in isolation from the internet, which significantly reduces the risk of hacking. A recommended approach is to combine the use of hot wallets for day-to-day transactions with cold wallets for storing large amounts.

4. Not verifying the authenticity of the wallet

Downloading unofficial wallets through fake apps is a real risk that can happen, as cybercriminals often create fraudulent versions of popular wallets to steal users' private keys, especially in times of high liquidity in the crypto market. Always check if a wallet is official through the security aspects they usually offer before transferring any amount of crypto.

  • Solution: Always download wallets from official websites or trusted app stores. For Web3 wallets, such as the Binance Web3 Wallet, access the link directly from the Binance website. This ensures that you are downloading the authentic version and avoids exposing your data to malicious apps.

5. Bypassing Two-Step Authentication (2FA)

Two-factor authentication (or 2FA) is an extra layer of security that protects access to your account with something you have (like a code generated on the fly) and something you know (your password). With this type of feature enabled, even a fraud attempt by scammers will be very difficult to access. Many users ignore this option, and this makes it easier for attackers to break into your wallets if they only get your password.

  • Solution: Enable 2FA on all accounts related to your crypto activity, especially wallets and exchanges. Tools like Google Authenticator or Authy can help you create temporary codes for authentication. This way, even if your password is compromised by a hacker, it will be much harder for an attacker to access your wallet.

Three Reasons to Use a Trusted Wallet Like Binance Web3

There are security alternatives created within exchanges to allow the custody of your cryptos to happen with the security of a wallet. One of these solutions is the Binance Web3 Wallet: a reliable solution to keep your cryptos safe.

It may not be so clear that it is safer to keep your cryptos in a wallet than on the exchange itself, so here are three reasons why:

1. Complete Control of Your Assets

When using a wallet like Binance Web3, you have full control over your private keys, meaning you are solely responsible for your funds. By leaving your crypto on the exchange, you grant partial control to the platform.

2. Reducing Hacker Risks

Exchanges are frequent targets for hackers, as they store cryptocurrencies from many users. Although exchanges like Binance invest heavily in security, using a personal wallet reduces this risk.

With a wallet like the Binance Web3 Wallet, your funds are kept out of the direct reach of the exchange, meaning that even if there is an attack on the platform, your crypto will be protected.

3. Personalization and greater flexibility of action

Decentralized wallets, such as the Binance Web3 Wallet, offer greater flexibility by allowing users to customize their interactions with assets, add new cryptocurrencies, and conduct transactions directly on the blockchain.

With this independence, you can integrate other features and DApps (decentralized applications), generating more control and customization in asset management.

Avoid mistakes with your wallets and live more peacefully in the crypto universe!

Keeping cryptocurrencies safe requires care and an understanding of common mistakes. By following security practices such as backups, offline storage, and paying attention to two-factor authentication, you can significantly reduce the risk of losing your assets.

Additionally, when you use trusted and decentralized wallets (like the Binance Web3 Wallet), you end up finding greater control and security.

Always remember: control and responsibility for your assets starts with you.

Before reading this article, did you know that it was so important to take these precautions with your wallet?

#Web3Wallet #segurança


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Photo by Uliana26, available on Freepik.