Level Up Your Transaction Security
Level Up Your Transaction Security
Level 5 - Sonic Autist
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Last week we posted about a mystery hacker stealing from crypto-savvy users.
Since then we’ve been flooded with questions and DMs about how we manage security and stay careful.
It may not feel like it at times, but crypto’s user experience is improving.
In the years to come we believe there will be a 100x improvement in crypto user experience.
Until then, you need to survive.
We’ll be doing two things today:
Going over step by step instructions on how to maximize your safety
Security expert Iguana will open the floor for a *security specific* Q&A to make sure everyone’s comfortable with how to navigate crypto today (paid subs only)
We’ll take a deep dive into some DeFi hacks and answer one of the most common questions that has come up recently; “will a hardware wallet protect me?”
We’ll start with an overview of how to manage your own security as the weak link and prevent fraudulent transactions.
Best Practices
Create a Cold Wallet and an Ape Wallet: If you have significant crypto holdings (>$100k), store ~90% in a Gnosis Safe and rarely access the keys. Utilize an 'ape wallet' for riskier activities such as farming on new protocols, claiming airdrops, or betting on new tokens. Never connect your main wallet to anything you don't trust 100%. Instead, transfer funds to your 'ape wallet' first.
Limit Main Wallet Transactions: By minimizing the number of transactions on your main multisig wallet, you reduce the risk of exploitation. Only use it for essential tasks like rebalancing assets or topping up your ape wallet.
Beware of Phishing Scams: Educate yourself on the tactics used in phishing scams. Avoid interacting with random projects on your main cold wallet to minimize risks.
What Is Phishing?
Cracking encryption is extremely hard. Hardware wallets work.
Since hackers can’t get at your hardware wallets, they look to attack weak links in the chain. Specifically, your computer (operating system, browser, metamask extension, etc).
Phishing refers to persuading a target to take an action which assists in a fraud - examples include signing a malicious blockchain transaction or revealing account codes/passwords. When an attack is customized for a high value target, it’s called Spear Phishing.
Be aware that more general phishing attacks can target a wide range of crypto users.
We’ll show a targeted and non-target example.