An in-depth guide to not getting scammed or hacked
Hardware wallets are the most secure way to store money

An in-depth guide to not getting scammed or hacked


Scams and hacks feel like they're everywhere. You just need to look at Mt.Gox's hack to appreciate how important it is to save your money. Over the past few years, scams are increasing in number, and scammers are even willing to buy a domain and then advertise that website. Here are the ways that I keep my money safe.

1. If websites tell you to send money to them and they aren't well-known, don't send money to them

A lot of times when I search Google about Bitcoin, this annoying ad pops up, telling me that there's this bot for sale that automatically claims at a variety of faucets. There are a few flaws in the advertising. Firstly, most faucets require you to complete a captcha. The faucet bot can't be that clever, otherwise the captcha companies would've made the captchas more hard, therefore only allowing humans to solve them. Another fact is that faucet owners aren't stupid-they know what earnings to expect for a predetermined number of faucet claims and if they're earning a lot below that expected earning then they're going to do their own investigation. Anyway, even if the bot was real(there is like a 1% chance that the bot is real) I still wouldn't risk my money just to earn a few odd cents per day. A possible exception to this are some subreddits where you trade cryptocurrencies. These subreddits are known to have a lot of scammers, so trade at your own risk.

2. Use a paper or hardware wallet

One of the benefits of a paper or hardware wallet is that they can't be hacked because they are offline and physical(on most hardware wallets you need to press a button to confirm a transaction). They can only be hacked if the whole blockchain gets hacked, which is very unlikely, and millions are using the blockchain, so there's really no risk. However, human error is what causes you to lose your money. For paper wallets, it is losing the wallet or the paper slowly getting destroyed. This is why you should always make a few copies of your paper wallet and laminate them. Then you should save the public and private key in cold storage, such as a vault. For hardware wallets, unknown firmware vulnerabilities can lead to your wallet getting hacked while the wallet is connected to the internet. Your computer might already have a Trojan on it undetected, which doesn't help. However, the probability of a hardware wallet getting hacked is VERY low, which means that both paper and hardware wallets are a good choice for storing large amounts of crypto. 

 3. Know which software wallets to use

If you're going to do a lot of day to day trading for example, having a software wallet is a good choice. Sending transactions is quick, unlike hardware wallets. Therefore you're going to want to know what the best software wallets have. For starters, it must have 2 factor authentication. This is important, especially if there's a keylogger on your computer. Another convenient thing to have is a matching mobile app to go with the desktop/laptop one. This way you can always access your funds more quickly and conveniently. You also want to read the reviews. There are some fake software wallets that just take your money when you deposit your money in them.

4. Don't keep money on exchanges for long

If you're trading every day, then keeping money on exchanges is vital to avoiding costly transaction fees, but if you don't intend to trade for more than a week it is strongly recommended to withdraw every last coin to your hardware/paper wallet. Exchange hacks can be costly, and not all victims get reimbursed. Many beginners believe that an exchange is a "online crypto wallet" but in reality it's just an exchange. So don't be lazy, and take care of your crypto.

Thanks for reading my article. If you liked it, please don't forget to tip.

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thecryptoguy123
thecryptoguy123

Hi, I am a new blogger. I am keen to share knowledge for all of us to know.


Ultimate guide to earn money
Ultimate guide to earn money

This blog teaches you how to earn money. It also recommends to you what you shouldn't do to earn money. Don't expect to make a living, but these tips will help you earn a little more(and even side income, it depends how successful you are)

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