Security Best Practices
Protect your digital assets with proven security strategies and risk management techniques.
1. Securing Your Wallet
Essential Security Measures:
- Strong Password: Use 16+ characters with mixed case, numbers, symbols
- 2FA Enabled: Use authenticator apps (Google Authenticator, Authy)
- Recovery Phrase Backup: Write on paper, store in safe/vault
- Multiple Backups: Keep copies in different secure locations
- Hardware Wallet: Use for large amounts ($1000+)
Recovery Phrase Storage: Do's and Don'ts
✅ DO:
- Write on paper with permanent ink
- Store in fireproof/waterproof container
- Use metal backup plates for extra security
- Keep in bank safe deposit box
❌ DON'T:
- Store digitally (photos, files, cloud)
- Email or message to yourself
- Share with anyone, ever
- Store in obvious location
2. Recognizing Scams
Phishing Attacks
What: Fake websites/emails mimicking real services
How: Steal login credentials and keys
Defense: Verify URLs, bookmark sites
Ponzi Schemes
What: "Guaranteed" high returns promises
How: Pay earlier investors with new money
Defense: If it sounds too good, it is
Social Engineering
What: Manipulating you to reveal info
How: Impersonation, urgency tactics
Defense: Verify identity, never rush
3. Two-Factor Authentication
Choose Authenticator App
Download Google Authenticator, Authy, or 1Password
Enable in Settings
Go to Security settings in your wallet/exchange
Scan QR Code
Use app to scan the setup code displayed
Backup Codes
Save backup codes in case you lose your device
4. Safe Backup Strategies
For Beginners
- Paper backup in safe at home
- Second copy with trusted family member
- Use hot wallet for small amounts only
- Keep majority in exchange initially
For Advanced Users
- Hardware wallet for cold storage
- Metal backup plates (fireproof)
- Bank safe deposit box
- Multi-signature wallets
- Inheritance planning
Test Your Knowledge
Question 1: What are three red flags of a crypto scam?
Guaranteed profits, urgent deadlines requiring immediate action, and requests for your private keys or recovery phrase.
Question 2: Why use 2FA instead of just a password?
2FA adds a second layer of security. Even if someone steals your password, they still need your authenticator code to access your account.