As Crypto becomes more mainstream, unfortunately, scamming becomes more popular. According to a report by Crystal Blockchain, Hackers ran away with more than $4 billion worth of cryptocurrencies in 2021. That is almost a tripling over 2020, when around $1.49 billion in crypto assets were stolen.
Unlike earlier years, the vast majority of these funds were stolen from DeFi protocols, including Polygon, Poly Network, Compound, and Cream Finance.
So, here are some tips to help protect yourself & keep your crypto safe, let’s make some new year’s resolutions regarding your safety? :)
Check out today’s Tixl Explained Series.
Keep your seed phrases safe: Your seed phrase should not be accessible online. Don’t write the correct phrase in any digital format. And don’t save it in the photos on your phone. The same applies to passwords. Your passwords should be at least 16 characters long, extremely complex, & unique to your accounts. Never share them with anyone.
Beware of rug pulls: There is a lot you can do to reduce the chances of it happening. First, be aware of basically any “pre-mine” or “pre-sale” from projects with anonymous founders. Do research about the project and team first! The chances these are rugpulls are high. Don’t FOMO in!
Always check the URL: Scammers create fake websites that look real but are designed to steal account information. Double-check the web address before you log into your account, connect or insert in any of your credentials, even if it appears to be from a Telegram group or legitimate e-mail. There are also fake mobile apps!
Be aware: Telegram Admins will never DM you first. Scammers often follow legitimate groups & contact you directly if you post a question. If you are not sure who you are talking to, ask in the main group.
- Check token addresses on CMC or Coingecko before interacting with a contract.
- Practice good Web3 hygiene.
- Only send cryptocurrency to trusted third parties.
- Block and flag as “spam” any emails coming from unknown addresses that are asking for your wallet’s information or prompting you to access your crypto exchange account through an unverified link.
- Always do your own RESEARCH before purchasing new tokens.