I used non-custodial wallets for the first time this year and was fascinated by the concept because of the financial freedom they provide. Unlike opening an account on central exchanges or banks, we do not need to share our personal information. All we have to do is download and install a browser add-on on our computer or download the relevant application on our mobile phone. Moreover, we can access hundreds of different finance applications with a single wallet.
I installed Metamask, the most widely used non-custodial wallet, primarily for use on Binance Smart Chain. I then used the same wallet for the Ethereum and Polygon networks. As a significant amount of crypto was stolen from my Metamask wallet in two separate incidents, I learned that financial freedom brought with it the obligation to take serious precautions in terms of security. Over two decades of banking experience have not been enough to prevent the incidents from happening to me.
There is a phrase in Turkish called "only the one who falls from the roof empathizes the one who falls from the roof". I don't want another member of the Hive community to have the same experience.
Therefore, I would like to share the issues to be considered when using MetaMask or any other non-custodial wallet.
Diversify Your Investments
Although it is possible to reduce the risk of loss with various measures to be taken, there is no complete security either in the physical world or in the digital environment. That's why keeping crypto investments on different networks can help us. If my investments were not on five separate networks, Hive, Tron, Steem, Binance Smart Network, and Polygon, I might have lost all my savings right now.
In particular, Hive's security infrastructure has some advantages compared to non-custodial wallets. We do not need to enter our master Hive password anywhere in the digital environment. We can use Hive Keychain only by saving our private keys. Especially if we have done a power-up, it becomes more difficult for malicious people to reach our funds.
It may be a preferable option to leave our cryptocurrencies, which will not be subject to Defi transactions, in reliable exchanges such as Binance and Coinbase.
It is possible to open multiple accounts on the Metamask wallet. Experts recommend opening a separate account for each DEFI application to which we will link our wallets.
Do Not Enter Your Secret Words Anywhere Except Metamask App
The person who has 12 words that allow access to the Metamask wallet on any device also owns the wallet. If more than one person knows the words, both can use the wallet. In phishing schemes, scammers allow the user to enter the words on the fake sites they own. It is necessary to write the words on a piece of paper and store them in an environment without an internet connection.
Don't Connect Your Metamask Wallet to Sites You Don't Know
When we link our wallets to a fake site owned by scammers, we may think we are doing one thing and be doing another. Scammers have produced similar sites to well-known Defi sites such as Pancakeswap. That's why experts recommend accessing Defi sites through bookmarked links.
Use a Hardware Wallet
It is possible to make Metamask wallets more secure by pairing them with hardware wallets. Thus, we are in a position to confirm transactions through the hardware wallet. My experience has been with the Ledger Nano S. This wallet is used through the Ledger Live app. It is also possible to use the hardware wallet without connecting with Metamask. Ledger Nano S supports major networks like Bitcoin, Ethereum, and Binance. In fact, storing our cryptocurrencies directly on a hardware wallet stands out as the safest way.
Secure Devices That Have Your Metamask Wallet Installed
In default mode, the Metamask application only asks for a password every few days. In order for the Metamask wallet to frequently ask for a password, it is necessary to activate the AutoLock Timer via the Advanced Settings menu. In addition, it would be appropriate for the device on which the wallet is installed to be opened with a password and to have virus protection.
After the security recommendations above, I would like to make a few warnings about frequently used fraud methods.
Fake Airdrops
The dream of most crypto investors is to stumble upon a solid airdrop. Considering that Hive was distributed as an airdrop 1.5 years ago, the importance of the issue seems clear. The scammers, who know the airdrop curiosity of crypto investors very well, try to deceive people in this way. For this purpose, they send their own created cryptocurrencies to investors' Metamask wallets. They even deposit BNB in a locked liquidity pool to make these cryptocurrencies appear valuable. When we search the internet to sell the airdropped token, we come across scammers' websites.
If we connect your wallet to these sites, they reach their goal.
Technical Assistance Offers
When we have a problem with any DEFI application, we write our problem to the relevant Telegram or Discord group. Scammers impersonating admin accounts offer help by writing a direct message. They direct acceptors to sites they control, asking them to type in their secret words.
Security is a multidimensional issue. If you think of any other measures to secure our crypto investments, you can mention them in the comments section.
Thank you for reading.
Image Source: https://undraw.co/illustrations and https://unsplash.com/
gayet faydalı olmuş. Size sonuna kadar katılıyorum. Ledger ı kaybetmek çok korkutucu geliyor bana
Kelimeleri bildikten sonra yenisini satın alıp cüzdana yeniden ulaşmak mümkün ama hem parasal külfet hem de stres kaynağı tabii
Herhangi bir adet durumunda kelimelerin yazılı olduğu kopyaları kaybetmekte çok olası geliyor bana. Özellikle Marmara depreminin yaşanacağı bölgede yaşadığımdan aklıma bunlar geliyor doğal olarak