One of the most relevant points of attention in the world of cryptocurrencies is regarding the security with which you handle your assets. A simple oversight can lead to total loss of funds, so understanding the most common mistakes and how to avoid them is essential.
In this article, we will address five of the most well-known mistakes that crypto investors must avoid with their wallets, and right after each of these mistakes, we will present tips to help you keep your wallets secure.
1. Not backing up the wallet
One of the most important practices to protect a cryptocurrency wallet is to perform regular backups. The lack of a backup can lead to the 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 really become a nightmare.
Solution: keep an offline backup of your keys and seed phrase in a safe place, such as a piece of paper stored in a safe. This way you will have a backup that you can recover if any loss of access occurs.
2. Sharing 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 beginners in the cryptocurrency world make the mistake of sharing this information on social media, emails, or messaging apps, leaving the assets extremely vulnerable to hackers. Do not do this at all.
Solution: never share your private key or seed phrase with anyone, even with people or platforms that claim to be trustworthy. Keep this data in a safe place, preferably offline and away from internet-connected devices.
3. Use only active wallets (online)
There are basically three types of wallets, depending on their connection to the internet: hot wallets are those that are fully online, cold wallets are those that are on external devices that are not connected to the internet all the time, and hot wallets are a hybrid type between these two categories.
When we talk about hot wallets, they are those connected to the internet, such as apps and browser extensions. Although they are convenient for quick transactions, they are more vulnerable to attacks as they are connected to internet networks.
Solution: To increase security, use offline wallets (or cold wallets), such as physical devices. These wallets store private keys isolated from the internet, significantly reducing the risk of intrusions. A recommended approach is to combine the use of active wallets for daily 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 during times of high liquidity in the cryptocurrency market. Always check if a wallet is official through the security aspects they usually offer before transferring any amount in cryptocurrencies.
Solution: always download wallets from official websites or trusted app stores. In the case of Web3 wallets, like Binance Web3 Wallet, access the link directly on the Binance website. This ensures that you are downloading the authentic version and avoids exposing your data to malicious applications.
5. Skipping two-step authentication (2FA)
Two-step authentication (or 2FA) is an additional layer of security that protects access to your account with something you have (like a code generated in real time) and something you know (your password). With this type of feature enabled, even a fraud attempt will make it much more difficult for scammers to access your wallet. Many users ignore this option and this makes it easier for attackers to enter their wallets if they only obtain their password.
Solution: enable 2FA on all accounts related to your cryptocurrency activity, especially wallets and exchanges. Tools like Google Authenticator or Authy can help create temporary codes for authentication. Therefore, even if your password is compromised by a hacking attempt, it will be much more difficult for an attacker to access your wallet.
Three reasons to use a reliable wallet like Binance Web3
There are security alternatives created within exchanges to allow the custody of your cryptocurrencies to be done within the security of a wallet. One such solution is Binance Web3 Wallet: a reliable solution to keep your cryptocurrencies safe.
It may not be so clear that it is safer to keep your cryptocurrencies in a wallet than in the exchange itself, so we will give you three reasons:
1. Full control of your assets
When you use a wallet like Binance Web3, you have full control over your private keys, which means you are solely responsible for your funds. By leaving cryptocurrencies on the exchange, you give partial control to the platform.
2. Reducing the risk of hackers
Exchanges are frequent targets for hackers, as they store the cryptocurrencies of many users. Although exchanges like Binance invest heavily in security, using a personal wallet reduces this risk.
With a wallet like Binance Web3 Wallet, funds are out of the direct reach of the exchange, which means that even if there is an attack on the platform, your cryptocurrencies will be protected.
3. Customization and greater flexibility of action
Decentralized wallets, like Binance Web3 Wallet, offer greater flexibility by allowing users to customize their interactions with assets, add new cryptocurrencies, and make transactions directly on the blockchain.
With this independence, you will be able to integrate other functionalities 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 understanding of common mistakes. If you follow security practices like backups, offline storage, and pay attention to two-step authentication, you can significantly reduce the risk of losing your assets.
Additionally, when you use decentralized and trustworthy wallets (like Binance Web3 Wallet), you gain greater control and security.
Always remember: the control and responsibility of your assets starts with you.
Before reading this article, did you know it was so important to take these precautions with your wallet?
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Photo by Uliana26, available on Freepik.
