Cryptocurrency can be daunting to newcomers. Everywhere you turn there are reports of scams, hacks and nefarious activity.
As a cryptocurrency investor or trader, you need to take precautions to keep your funds safe. We’re here to help.
On Liquid, user security is our priority. But outside Liquid, we urge our users to be aware of the risks and safeguard themselves.
Here are our top tips for traders on how to stay safe in crypto.
Do your own research (DYOR)
There are biased parties and paid shills everywhere online. Many of these people remain anonymous, hidden behind avatars. Some have an agenda.
When you are researching new coins, ICOs, exchanges or airdrops you have to ask yourself who is giving you the information.
Choices you make in crypto affect your money and no decision should be made lightly. It’s vital that you don’t blindly listen to advice from popular influencers.
Granted, they may have valid points a lot of the time, but it does no harm to do your own research.
That’s what this all is about.
Before you make a financial decision, get down to business and do some research. Make sure your next move is in your best interest.
Use 2FA and bulletproof your passwords
Your personal security measures make a huge difference to your overall fund security. Wherever you can, you should use 2FA and back up your codes offline in a safe place.
It's recommended to use a 2FA app as opposed to SMS 2FA. SMS 2FA is flawed and there are workarounds that are fairly simple for trained social engineers.
For security reasons, use a recommended app, like the Google Authenticator application.
A lot of people have the same password for everything. It’s probably a bad password. Use a password storage service that will look after your passwords. LastPass or 1Password are good options.
This means you can make super strong passwords and easily find them if you forget. They are safely locked away, so no worries there.
Every extra security measure you can add to your account is worth doing. Make sure your email accounts are locked down too.
Even if your exchange account is like Fort Knox, having an email that is easily hackable could break your security right open.
On Liquid we have our Iron Shield protocols are in place to help keep your account extra safe. We take every precaution we can.
Don’t be a phish
Cryptocurrency traders and investors visit numerous different websites on a daily basis.
The crypto community is rife with constant deception attempts:
- Exchange clones that steal your login information. 😲
- Twitter bots promising crypto giveaways and linking to websites that steal your private keys. 🤯
- Malicious users sharing executable files which install key-loggers onto your computer. 😱
- Hacked or fake ICO pages which lure users into investments, ultimately sending their funds directly to the scammers wallet. 😨
The list goes on and on.
Your personal data is out there. There have been many cases where crypto mailing lists have been compromised.
Subsequently, scam emails appear in inboxes under the guise of legitimate messages, directing people to various shady websites or services.
If you are registering for a lot of websites, ICOs or exchanges, your details are going to be out there. Each time you do this your risk level increases.
Remaining vigilant is always the answer. Only click on links shared from confirmed official channels and even then, you must be aware of compromised accounts. Always think about what you are clicking on.
Bookmark websites you use. Always double check URLs to ensure there are no typos or unusual characters, you may have unknowingly gone to a fake website that wants to steal your funds.
Use a secondary email address to sign up to ICOs, just in case.
If you are going to invest in ICOs, take part on a secure platform, like the ICO Market on Liquid.
Don’t keep your KYC documents in the cloud. If they are in the cloud they are attainable.
Have good virus protection on your computer and don’t download any suspicious files.
Lock up your crypto
It is astonishing when you look at the crypto exchange hacks that have happened in the past. Traders are left in a perpetual state of uncertainty regarding their fund security.
Many exchanges don’t take the necessary steps to rectify these security issues.
Store your funds offline in cold storage for maximum security. Keeping your funds on any exchange that doesn’t use cold storage is a risk.
Consider using a hardware wallet for easy offline personal storage.
You can rest assured that as a Liquid user, your funds are safe. We look at exchange hacks, past and present, as a major issue.
We take fund security extremely seriously. That’s why we store your funds in 100% cold storage. You are safe with us on Liquid.
Withhold your trust
Crypto companies aren’t traditional in the business and communication sense. Telegram is a massive part of crypto.
Unfortunately, Telegram has its fair share of scammers lurking, waiting for the right moment to pounce.
They often pretend to be community admins or support accounts and try to get users to hand over their personal details.
If it’s too good to be true, it probably is. If someone approaches you offering something, you should be sceptical.
If they claim to be a community representative, there is a fair chance they are a fraud. Always conduct your own due diligence and know whether you are talking to a legitimate person or a scammer.
As a rule, never give your details to someone who approached you first.
Make sure you are aware of the lists of admins in Telegram groups, but be remember that there is always the possibility of accounts being compromised.
Always understand what is reasonable for an admin to ask of you and what isn’t. They will never ask you to send them your funds, for example.
Report all scammers, help clean up the community.
Don’t fall for twitter giveaways. Accounts impersonate legitimate accounts and reply saying they are giving away a monumental amount of crypto.
It’s never true.
Look at the accounts and you can normally tell they are fake. Don’t buy into things that are too good to be true.
Keep it to yourself
When you are talking in Telegram groups, on forums or any kind of social media, or even in real life, don’t overshare.
No-one needs to know all of your personal details and they especially do not need to know how much you are holding. Any information you share publicly can put you at some sort of risk, and there is really no need.
Scammers and hackers are in Telegram groups waiting to pounce. Don’t give them the information they are seeking. Keep your information private.
Choose an exchange you can trust
Liquid is a secure crypto exchange. We know that security matters. We are committed to keeping your funds and information safe.
Liquid is an exchange licensed by the Japan Financial Services Agency. We don’t shy away from regulation, we welcome it.
Crypto can be risky, so take the steps to choose and use an exchange that you can trust.
Become a Liquid user and stay safe out there.
This content is not financial advice and should not form the basis of any financial investment decisions nor be seen as a recommendation to buy or sell any good or product. Trading cryptocurrency is complex and comes with a high risk of losing money, particularly if you trade on leverage. You should carefully consider whether trading cryptocurrencies is right for you and take the time to learn how trading works and decide how much money you are prepared to lose.
Providing liquidity for the crypto economy.