Crypto Security Guide: Protect Your Investment

Security is the most critical aspect of cryptocurrency ownership. Unlike traditional banking, there's no customer service to reverse mistakes or recover hacked funds.

The Golden Rule

Not your keys, not your coins.

If you don't control the private keys, you don't truly own the cryptocurrency. Exchange custody has risks.

Secure Your Accounts

Strong Passwords

• Use unique passwords for each crypto account
• Minimum 16 characters with symbols
• Use a password manager (1Password, Bitwarden)

Two-Factor Authentication (2FA)

• Always enable 2FA on exchanges
• Use authenticator apps (Google Authenticator, Authy)
• Avoid SMS 2FA (vulnerable to SIM swapping)
• Consider hardware keys (YubiKey)

Email Security

• Use a dedicated email for crypto
• Enable 2FA on email account
• Be wary of phishing emails

Wallet Security

Hot Wallets (Software)

• Only keep small amounts for daily use
• Verify app authenticity before installing
• Keep software updated
• Never enter seed phrase online

Cold Wallets (Hardware)

• Store majority of holdings offline
• Buy directly from manufacturer
• Set up on a clean computer
• Test recovery before depositing large amounts

Seed Phrase Security

• Write on metal (fireproof, waterproof)
• Store in multiple secure locations
• Never photograph or store digitally
• Never share with anyone
• Consider Shamir backup (splitting phrase)

Common Scams to Avoid

Phishing

• Fake emails/sites mimicking exchanges
• Always verify URLs carefully
• Bookmark legitimate sites
• Never click email links

Giveaway Scams

• "Send 1 ETH, get 2 back" - always fake
• Fake celebrity endorsements
• YouTube live stream scams

Fake Support

• Scammers impersonate support staff
• No legitimate support asks for seed phrases
• Contact support only through official channels

Rug Pulls

• New projects that steal investor funds
• Research team, audit status, locked liquidity
• If returns seem too good to be true, they are

Operational Security

Privacy

• Don't discuss holdings publicly
• Use VPN on public WiFi
• Consider privacy-focused coins for sensitive transactions

Physical Security

• Be discreet about crypto wealth
• Secure hardware wallet storage
• Consider multisig for large holdings

Inheritance Planning

• Document recovery process for heirs
• Consider legal structures for large holdings
• Test that heirs can access if needed