Security Best Practices
🚨 CRITICAL: The Golden Rules of Crypto Security
1. NEVER share your seed phrase - No legitimate service will ever ask for it
2. NEVER enter your seed phrase online - Only in hardware/software wallets
3. NEVER click suspicious links - Always verify URLs manually
4. NEVER rush - Scammers create false urgency
Current Threat Landscape (2025)
The crypto security environment has become increasingly sophisticated, with over $2.3 billion lost to hacks and scams in 2025 alone.
DeFi Exploits
Phishing Attacks
Wallet Drainers
Exchange Hacks
Rug Pulls
MEV Attacks
Wallet Security Hierarchy
Different wallet types offer varying levels of security. Choose based on your needs and holdings.
| Wallet Type | Security Level | Best For | Risk Factors |
|---|---|---|---|
| Hardware Wallet | Highest | Long-term storage, large amounts | Physical theft, loss of device |
| Multi-Sig Wallet | Very High | Team funds, high-value storage | Coordination complexity |
| Desktop Wallet | Medium | Regular transactions | Malware, computer compromise |
| Mobile Wallet | Medium | Daily use, small amounts | Phone theft, app vulnerabilities |
| Browser Extension | Medium | DeFi interaction | Phishing, malicious sites |
| Exchange Wallet | Low | Active trading only | Exchange hacks, account compromise |
Hardware Wallet Best Practices
- Buy directly from manufacturer (never secondhand)
- Verify device integrity and packaging
- Generate new seed phrase (never use pre-existing)
- Store seed phrase offline in multiple secure locations
- Use passphrase for additional security layer
- Keep firmware updated
Seed Phrase Security
Your seed phrase is the master key to all your crypto. Its security is paramount.
Storage Methods (Ranked by Security)
- Metal Backup: Fireproof, waterproof metal plates
- Paper (Laminated): Multiple copies in secure locations
- Cryptographic Splitting: Shamir's Secret Sharing
- Safety Deposit Box: Bank vault storage
- Home Safe: Fireproof safe with copies elsewhere
⚠️ NEVER Store Seed Phrases
• In cloud storage (Google Drive, iCloud, Dropbox)
• In password managers (for primary wallets)
• As photos on your phone
• In email or messaging apps
• On your computer in plain text
Common Scams & How to Avoid Them
1. Phishing Attacks
Example Scam Message:
"URGENT: Your MetaMask wallet has been compromised! Click here immediately to secure your funds: metarnask.io"
- Always check URLs character by character
- Bookmark official sites and use bookmarks only
- Look for HTTPS and verify SSL certificates
- Be suspicious of urgency and threats
2. Fake Support Scams
- Official support will NEVER DM you first
- Never share screen with "support"
- Verify support channels on official websites
- Report and block unsolicited DMs
3. Honeypot Tokens
- Tokens you can buy but cannot sell
- Check contract code for selling restrictions
- Use token scanners before buying
- Test with small amounts first
4. Rug Pulls
- Anonymous teams with no track record
- Unrealistic promises (1000% APY)
- Locked liquidity is not locked
- No audits or fake audit reports
DeFi Security Checklist
Before Using Any Protocol:
Transaction Security
Before Signing Any Transaction
- Verify the recipient address (check first and last 4+ characters)
- Check transaction amount and token type
- Review gas fees (abnormally high fees may indicate issues)
- Understand what you're approving (especially token approvals)
- Use hardware wallet for significant transactions
Token Approval Management
- Regularly review and revoke unused approvals
- Use revoke.cash or similar tools
- Set limited approval amounts instead of unlimited
- Create separate wallets for different risk levels
Operational Security (OpSec)
Digital Hygiene
- Use unique passwords for every crypto-related account
- Enable 2FA with authenticator apps (not SMS)
- Keep software updated (OS, browsers, wallets)
- Use antivirus and anti-malware protection
- Avoid public WiFi for crypto transactions
- Use VPN for additional privacy
Social OpSec
- Never reveal holdings or portfolio value
- Be cautious about crypto discussions online
- Use pseudonyms in crypto communities
- Don't link real identity to wallet addresses
- Be aware of physical security ($5 wrench attack)
Emergency Response Plan
If You Suspect Compromise:
- Immediately move funds to a secure wallet
- Revoke all token approvals from compromised wallet
- Document everything (screenshots, transactions, timeline)
- Report to authorities if significant loss
- Alert the community to prevent others from being scammed
- Review and improve security practices
Recovery Resources
- IC3.gov: FBI's Internet Crime Complaint Center
- CipherTrace: Blockchain analytics for tracking
- Local law enforcement: File reports for documentation
- Exchange support: If funds went to an exchange
✅ Security Best Practices Summary
• Use hardware wallets for significant holdings
• Never share seed phrases or private keys
• Verify everything twice before transacting
• Keep software and firmware updated
• Use multiple wallets for different purposes
• Stay informed about new threats
• Trust your instincts - if it seems suspicious, it probably is