- Transactions done on Ethereum are irreversible; therefore, it is important to preview the wallet address
- Crypto mining pool and trading broker scams are done by fraudulent brokers
As the interest of users in cryptocurrencies is growing and is garnering more and more enthusiasts, having a keen knowledge of best practices while using crypto is essential. Crypto is a lucrative domain but there is a severe risk factor associated with it too.
Understanding Security and Choosing the Right Credentials
It has been found that one of the major reasons people get scammed in crypto is their lack of understanding. For example, if somebody doesn’t have knowledge about the Ethereum network’s decentralized nature, there are fairly easy chances of them falling prey to somebody who is pretending to be customer service. You might be manipulated into sharing your private information in return for your lost ETH tokens.
Research-based data suggests that almost 80% of account hacks are an outcome of weak or stolen passwords. A prolonged and peculiar combination of characters, numbers, and symbols is the best way to keep your accounts safe and secure. It’s better to not use passwords that are susceptible, vulnerable, and easy to guess through social media.
That includes you shy away from using your mother’s maiden name or dates of birth of your or anybody close to you. All these elements will increase the chances of your password getting hacked. However, the secrecy of a strong password will diminish if the password is revealed in a data breach.
Use of Security Key and Avoiding Extensions
It is preferred to keep a discrete password, not just for web security but also for crypto security, for every account that you have in order to mitigate the risk of hackers getting access to all your accounts in case one of your passwords gets compromised.
Using security keys is another way to enhance security. Security keys basically work on the same model as authenticator apps. Security keys work as a physical hardware validation device and they take users to the next step in 2FA, which is two-factor authentication. A security key acts as a password for your Ethereum wallet.
Browser extensions can pose an unprecedented threat to security. The main purpose behind the use of browser extensions like Chrome extensions or add-ons for Firefox is to enhance some useful browser functionality and augment the user experience; however, they come with certain risk factors.
Most of the browser extensions ask for access to site data, and in order to utilize those extensions, access is granted, which allows them to control and manage your data the way they want. The newer updates of the Chrome extension might also include malicious code; therefore, it is important to be aware, even though most of the extensions aren’t really looking to steal your data.
In order to protect your fund, it is extremely important to be aware of ill-conceived activities like crypto mining pool scams, airdrop scams, and other social media scams such as celebrity giveaways or support scams.