Cryptocurrency Safety Tips

Protect yourself from cryptocurrency scam with these essential security practices. Organized by category, these tips will help you build a robust security foundation.

Comprehensive Security Guide

Discover practical, easy-to-follow tips for keeping your crypto safe. From securing your wallets to avoiding common traps, this guide will help you build smart habits and stay one step ahead of scammers. Knowledge and vigilance are your best defenses.

Because in crypto, security isn’t optional — it’s essential.

Wallet Security

Use Cold Wallets

Store significant amounts in cold wallets

  • Cold wallets keep private keys offline, making them immune to online attacks
  • Avoid used or gifted wallets: never accept a pre-owned hardware wallet unless you can fully factory reset it and verify it initializes as brand-new (and even then, prefer buying new)
  • Add a passphrase (BIP39 passphrase) or, better, keep large holdings in multisig setups so a single compromised device can’t drain everything

Never Share Private Keys

Your private keys are like your password - never share them with anyone

  • Legitimate services will never ask for your private keys or seed phrases
  • Any service or individual asking for your seed phrase or private keys is malicious

Backup Seed Phrases Securely

Take the generation and storage of your seed phrase very seriously

  • Store seed phrases offline to prevent digital theft
  • Write down seed phrases on paper and store in multiple secure locations
  • Use fireproof safes or stamp or engrave your seed phrase on metals that are resistant to fire and corrosion in order to safely preserve your seed phrase over time
  • Consider bank safety deposit boxes for important backups
  • Regularly review and securely destroy any insecure copies of your seed phrase

Use Multiple Wallets

Separate your holdings across different wallets for different purposes

  • Keep a small amount in hot wallets for daily use, rest in cold storage
  • Use a trusted address book / whitelist / saved contacts in your wallet to send tokens
  • Use separate addresses for experiments: avoid giving approvals from your main wallet

Exchange Safety

Enable Two-Factor Authentication

Always use 2FA on your exchange accounts

  • Use authenticator apps like Google Authenticator or Authy, not SMS-based 2FA — SMS can be intercepted or SIM-swapped
  • Backup your 2FA codes securely and offline
  • Never share your 2FA recovery codes or screenshots with anyone

Verify Exchange Legitimacy

Research exchanges thoroughly before using them

  • Check regulatory compliance, licenses, and third-party security audits
  • Search for user reviews and any past reports of hacks or withdrawal issues
  • Avoid newly launched exchanges or those with unclear ownership or registration

Don't Store Large Amounts

Keep only what you need for trading on exchanges

  • Most of your crypto should be in your own wallets, not on exchanges
  • Exchanges are convenient but remain custodial — your assets can be frozen, hacked, or lost
  • Transfer profits and long-term holdings to secure self-custody wallets
  • Treat exchanges as temporary tools, not as long-term storage

Use Strong, Unique Passwords

Create complex passwords and never reuse them

  • Use password managers to generate and store secure, unique passwords for each account
  • Avoid similar or reused passwords across exchanges and wallets
  • Regularly update passwords and monitor for data breaches on services you use

Investment Protection

Research Before Investing

Thoroughly investigate any project before investing

  • Read whitepapers, check the team’s background, and verify partnerships independently
  • Look for open-source code and transparent tokenomics — real projects have nothing to hide
  • Avoid projects where information about founders or developers is vague or unverifiable

Beware of Unrealistic Promises

If returns sound too good to be true, they probably are

  • Legitimate investments don't guarantee specific profits, 'risk-free' returns or promise quick riches
  • Watch for aggressive marketing, referral bonuses, or pressure to invest quickly — these are classic red flags
  • Always question youself why someone is offering you an opportunity that supposedly guarantees profits

Diversify Your Portfolio

Don't put all your eggs in one basket

  • Spread investments across different cryptocurrencies and traditional assets
  • Diversification reduces risk — one failed project or market crash won’t wipe out your entire capital
  • Rebalance your portfolio periodically to maintain a healthy risk-reward ratio

Start Small

Begin with small investments to test and learn

  • Increase your position size gradually as you gain experience and confidence
  • Test withdrawal, liquidity, and communication with the project before committing serious capital

Social Engineering Defense

Verify Identity Claims

Always verify who you're communicating with

  • Don’t trust usernames, avatars, or social media profiles — they’re easily faked
  • Use official websites or verified contact forms to confirm identities
  • When dealing with “support,” always start the conversation yourself via the official channel, never reply to DMs

Don't Trust Urgency

Scammers create false urgency to pressure you into acting

  • Take time to think and research before making any decisions — time pressure is one of the strongest manipulation tactics
  • Messages like “act now,” “limited time,” or “your account will be closed” are red flags
  • No legitimate company or exchange will rush you to make a transaction or share data

Question Unusual Requests

Be suspicious of requests for personal information or funds

  • Legitimate organizations will never ask for sensitive information — passwords, 2FA codes, or seed phrases
  • Requests for “verification payments” or “unlocking fees” are always scams
  • If a request feels off, contact the organization through verified channels before acting

Trust Your Instincts

If something feels wrong, it probably is

  • Scammers rely on emotional reactions — excitement, fear, or greed
  • Don't let FOMO or pressure override your common sense
  • If you feel rushed, confused, or uneasy, step back and reassess
  • When in doubt, talk it through with a trusted friend before making a move

Technical Security

Keep Software Updated

Regularly update your wallet software and operating systems

  • Updates often contain security patches for newly discovered vulnerabilities
  • Enable automatic updates when possible to avoid missing critical patches
  • Outdated software is one of the most common entry points for hackers

Use Security Software

Protect your devices with reputable security software

  • Malware can steal your private keys and compromise your security
  • Use real-time antivirus protection and schedule regular scans of your system
  • Keep antivirus definitions up to date
  • Use browser extensions, such as ScamSniffer, to avoid interacting with malicious links

Avoid Public Wi-Fi

Never access your crypto accounts on public networks

  • Public networks can be easily monitored or spoofed by attackers to steal credentials
  • If you must connect via public Wi-Fi, use a trusted VPN to encrypt your internet traffic and protect sensitive information

Verify Download Sources

Only download wallet software from official sources

  • Check URLs carefully
  • Avoid third-party download sites and app stores
  • Verify digital signatures or checksums when downloading software

General Security Habits

Keep Your Software Updated

Always use the latest versions of wallets, browsers, and operating systems

  • Security patches close vulnerabilities that hackers often exploit.
  • Outdated software can contain known bugs or backdoors that allow remote access to your data.
  • Enable automatic updates when possible, but verify updates come from official sources.

Be Skeptical and Verify Everything

Trust no message, link, or request until verified

  • Scammers often impersonate support staff, influencers, or friends to steal your funds.
  • Check URLs, domains, and contact details before taking any action.
  • When in doubt, contact official support directly — never through links sent in messages.

Limit Information Sharing

Protect your privacy both online and offline

  • Avoid sharing wallet balances, portfolio details, or screenshots publicly.
  • Personal information can be used in phishing or social engineering attacks.
  • Use pseudonyms or separate accounts for crypto-related activities.

Regularly Review Your Security Setup

Audit your own security practices periodically

  • Check where your seed phrases and backups are stored — and update them if necessary.
  • Revoke permissions for old dApps and wallets you no longer use.
  • Treat your crypto setup like a system that always needs maintenance and testing.

Red Flags to Watch For

If you encounter any of these warning signs, proceed with extreme caution

Promises of guaranteed returns
Pressure to act quickly
Requests for private keys or seed phrases
Unrealistic investment opportunities
Poor grammar and spelling in communications
Suspicious or unverified team members
Lack of transparency about operations
Aggressive recruitment tactics
Requests for upfront fees
Promises to recover lost funds

What to Do If You're Scammed

Immediate steps to take if you suspect you've been victimized

Immediate Actions

  • Transfer the remaining funds to the new wallet
  • Stop all communication with scammers
  • Revoke suspicious token approvals (e.g., Revoke.cash, Rabby wallet)
  • Change passwords and enable 2FA
  • If an exchange is involved, contact support; if fiat is involved, contact your bank
  • Use token-issuer services where available (e.g., Tether Security Concern)

Report the Incident

  • Document everything — transaction IDs, wallet addresses, screenshots, chat logs, emails, and links.
  • Note dates, amounts, and any usernames or profiles involved.
  • Report to relevant authorities
  • File reports with cryptocurrency exchanges

Recovery Steps

  • Learn from the experience
  • Strengthen your security practices
  • Consider professional help, but be careful — 99% of “fund recovery specialists” are scams on top of scams.
  • Share with crypto community — on Reddit, Discord/Telegram groups, crypto forums, via Chainabuse, Slowmist, or our form

The Golden Rule of Crypto

In the world of digital assets, your security is ultimately your own responsibility. No exchange, wallet provider, or platform can fully protect you if you ignore basic safety principles. Build habits, not assumptions. Your seed phrases and private keys are your money. Anyone with access to them owns all your funds. Legitimate services will never ask for them. With vigilance, patience, knowledge, and the right practices, you can navigate crypto safely and confidently.

Be paranoidly cautious. Don't Trust, Verify.

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