Six Tips To Keep Your Crypto Safe

Jason Vance, CISO at crypto exchange CoinZoom lays out six steps crypto investors should consider to help safeguard their digital assets.

Headlines within the decentralized finance (DeFi) space have long been dominated by reports of hacks and scams, resulting in losses of billions of dollars. Chainalysis recently revealed in the first seven months of 2022, $1.9 billion of crypto was stolen in hacks of services, up $700 million from the same time in 2021.

To help you beat the bad actors, here are six tips to keep your crypto safe.

Utilise password managers.

Start thinking about your online privacy like your real-world privacy. E.g. you wouldn’t use the same key for your house, car, and office. This is the same when online.

A 2019 study by Google found that 52% of people use the same password across multiple accounts. Due to this, a staggering 81% of hacking-related breaches are due to weak or stolen passwords, per Verizon.

Password managers solve this by storing unique, strong passwords for every website.

Use a secure Virtual Private Network (VPN) when on untrusted networks.

When checking your portfolio or executing cryptocurrency trades, ensure that the network you are connected to is trusted or is secured by a trusted VPN provider.

Some public networks use older standards for encryption which raises security risk.

When dealing with your crypto, ensure you are connected to a private, strong password protected Wi-Fi or VPN which effectively encrypts your data, to keep your digital assets as safe as possible.

Enable 2FA for all accounts

Two Factor Authentication (or 2FA) provides an extra layer of security – if a breached password is used, 2FA prevents access without the correct code.

2FA is a must when it comes to protecting your account and the research proves it. According to a 2019 Microsoft report, 2FA blocks 99.9% of account hacks.


Protect yourself from scammers

The Chainalysis report demonstrates a rise in scams in the industry, so it is important to clue yourself up about what to look out for:

  • FOMO (fear of missing out): It is common for scammers to play on your emotions.
  • Social media influencer promotions
  • Cryptocurrency trades off centralised exchanges
  • Fake applications

Remember, if it looks too good to be true, it is.

Protect yourself against phishers

When communicating with someone online, it’s important to always be certain of their authenticity. Ways to protect yourself against phishing include:

  • Never submit confidential information via forms from email messages.
  • Be wary of any email regarding your financial accounts.
  • Don’t fall for scare tactics. Phishers often pressure you into sharing sensitive information through threats.
  • Be suspicious of social media invitations from strangers.
  • Ignore messages with typos.
  • Use reliable anti-virus software.


Use a licensed and secure exchange

When signing up to platform, ensure its registered with your local financial authority.

Even with registered exchanges, make sure you do your research. Any reputable exchange will have a section on their website that details the security measures they have in place to keep your personal information and funds safe.

When reading the news and being met with headline after headline of scams and breaches, it’s easy to be scared away from the crypto market. Truthfully, scammers are on the rise in every financial market – not just crypto. By following these guidelines, understanding the market risks, and taking precautions when interacting with it, you can get involved with this new and exciting industry, whilst best protecting your hard-earned money.