Even though the crypto market has cooled off a little since 2022, the public is still interested and investing in different digital currencies and stores of wealth. Crypto is an exciting investment and trading option that can be very lucrative. However, everything can be undone by simple mistakes that many people investing in cryptocurrencies, even those who have been doing it for some time, make.
Forgetting Password and Seed Phrases
Every crypto wallet requires a password to access. Forgetting your password means the crypto inside it becomes irrecoverable. Many wallets come with seed phrases that can help with recovery if you forget your password, but forgetting this too effectively means your cryptocurrency will be locked away forever.
The best thing you can do, besides creating a strong password, is to keep a copy of your seed phrase somewhere safe where no one else can access it and separate it from your wallet. Ideally, store it in a locked and protected folder on your computer or phone so it is inaccessible if a malicious actor gains access to your devices.
Not Taking Advantage of Available Access Options
The most common ways of accessing cryptocurrencies are through a website, software, or trading platform. But did you know there are additional physical options for doing the same? Options like the Tangem Bitcoin ring make it easy to pay for everyday items easily by tapping an NFC-enabled device.
You get the same convenience a card or cash affords you while enjoying the same security you would when accessing your accounts and funds through a secure website or software. The best thing is that these access options do not require constant access to the server, eliminating a common vulnerability point when paying with crypto.
Accessing Your Wallet On A Public Network
Even though network security has come a long way and man-in-the-middle attacks are not as common as they used to be, there is still a chance of someone intercepting your details when you access your wallet on a public network.
A good security measure is to never connect to a public network, whether accessing your crypto wallet or simply browsing the internet.
Not Knowing About The Latest Scams
Because of how many people do not know about crypto scams, users have lost billions of dollars in the past two years alone, with over $700 million stolen in 2021 alone. These scams can range from simple pump-and-dump schemes to more sophisticated phishing attacks. With phishing attacks, malicious actors can access your wallet to drain it or trick you into sending them crypto.
There are also scams where a legitimate-looking website asks you to log in and connect your crypto wallet to trade. If you give them permission to access your funds or act on your behalf, there is a significant chance you will lose everything in your account.
Cryptocurrencies are still relatively new for many people even though there is a lot of interest around them. Those new to this market are more likely to fall into known traps or make simple mistakes that can lead to huge losses. Knowing where the pitfalls are and what mistakes to avoid remains the best way to protect yourself and your crypto.
