Crypto Security Best Practices

1) Mindset: reduce single points of failure

Most crypto losses come from simple mistakes: reused passwords, fake websites, seed phrases typed into phishing popups, or blind signature approvals. You don't need to be perfect; you need layers that catch mistakes before funds move.

Threat model (plain English)

Phishing

Impostor sites/support ask for seed or to "verify wallet".

Malware

Clipboard swaps addresses, keyloggers capture passwords/2FA.

SIM swap

Attacker takes your phone number to reset accounts.

Rogue approvals

Unlimited token allowances drain tokens later.

Target outcome

Goal: even if one layer fails (email, device, or site), funds remain protected by a separate control (hardware wallet, offline seed, no-SMS-2FA, limited allowances, backups).

2) Authentication & Passwords

Strong auth prevents account takeover on exchanges, email, and password managers themselves.

Rule of thumb: unique + long + random passwords stored in a reputable manager, and app-based 2FA (not SMS) on everything that touches money.

Passwords done right

Use a password manager to generate 20–30-char random passwords. Even better: passphrases of 5–6 random words.
Never reuse a password across exchange/email/social—email is the reset key.
Enable "breach alerts" in your manager and rotate any leaked credentials fast.

2FA that actually helps

Prefer TOTP apps (Authenticator, Aegis, 1Password/Bitwarden built-in). Avoid SMS—too easy to SIM-swap.
If offered, consider security keys (FIDO2/U2F) for exchange and email; keep a backup key stored separately.
Store 2FA recovery codes offline (printed or written; label clearly and keep away from the seed).

Never share codes. Real support will never DM you first or ask for codes, seed phrases, or to "verify wallet".

3) Email hygiene (your master key)

Your email is the recovery path for almost everything. Harden it first.

Enable 2FA (app or security key) and set a long, unique password.
Create filters that auto-move crypto alerts into a dedicated folder to avoid panic-clicking links.
Hover links before clicking. Prefer typing the domain manually or using bookmarks.
Disable legacy "less secure app" access and IMAP on accounts you don't use.

4) Wallets, Seed Phrases & Storage

Custody spectrum

Exchange: easy, but counterparty risk. Enable withdrawal allow-lists & 2FA.
Software wallet: you hold keys; convenient but exposed to device malware.
Hardware wallet: keys isolated; confirm addresses on screen. Best for savings.

Seed phrase rules

Write it offline; never take screenshots or cloud photos.
Store two copies in separate physical locations. Label by wallet purpose, not brand.
Consider a metal backup for fire/water resistance. Test recovery before sending large funds.

Golden rule: type your seed phrase only into a hardware device or an air-gapped setup you fully control. Never on random websites or in support chats.

5) Transactions, Signatures & Approvals

Most "drainers" rely on blind approvals. Reduce allowances and read what you sign.

On a hardware wallet, confirm the address and amount on the device screen—don't trust only the browser UI.
Prefer Permit/Approve with limited allowance; avoid "unlimited" unless required.
Periodically revoke token allowances on major chains using a reputable allowance viewer.
For NFTs: watch for "setApprovalForAll"—that lets a contract move all items; only grant to trusted marketplaces.
Test new dApps with a fresh wallet holding small funds; upgrade allowances later.

Simulation first: some wallets simulate the transaction and show token flows. If something looks off (unknown token transfer), stop.

6) Device & Network Safety

Your computer/phone

Keep OS and browser updated; remove extensions you don't use.
Download wallets and tools from official sites only; verify URLs.
Turn on disk encryption (FileVault/BitLocker). Require a device passcode.
Use a standard user account for browsing; avoid admin for daily work.

Networks

Avoid public Wi-Fi for transactions; use your phone hotspot instead.
VPNs can hide your IP from hotspots/ISPs but don't fix phishing—stay vigilant.
Disable auto-connect to open networks.

7) Backups & Incident Plan

Assume you'll lose a phone or laptop at the worst time. Pre-build a path back to safety.

Backups that matter

Two copies of the seed phrase, different places.
Password manager emergency kit + recovery codes printed and sealed.
List of critical accounts (exchange, email, wallet brands) stored offline.

If something goes wrong

Disconnect device from the internet; change credentials from a clean machine.
Freeze exchange withdrawals if supported; enable address allow-lists.
Revoke token approvals; move assets to a fresh wallet once safe.
Rotate email + password manager master password; replace 2FA seeds.

8) Common Red Flags

"Support" DMs you first and asks to verify seed/2FA/remote control your screen.
Time pressure: "act in 5 minutes or funds are lost".
Domain misspellings or extra characters (crypt0pay, .ltd instead of .com).
Unsigned binaries, browser extensions with few reviews, or copied brand names.
Transactions that request unlimited approvals for obscure tokens.

FAQ

Are hardware wallets necessary for small balances?

If you actively trade small amounts, a software wallet can be fine—use limited approvals and test contracts on a fresh wallet. For savings or long-term holds, a hardware wallet is worth it.

Can I store my seed in a password manager?

You can, but it concentrates risk. Prefer an offline copy (paper/metal). If you must store digitally, encrypt it with a separate key and keep that key offline.

Is a VPN required?

VPNs help privacy on untrusted networks but don't stop phishing or malware. Focus first on strong auth, verified downloads, and hardware signing.