From Fiat To The Crypto World: How To Stay Secure
Published in
4 min readDec 15, 2017
Please take some time to read the following information provided for your own safety. 🙏 Your funds can be stolen if you do not heed these warnings.
We cannot recover your funds or freeze your account if you visit a phishing site or lose your private key.
We will explain what a crypto wallet using the example of MyEtherWallet
MyEtherWallet is not a bank
- MyEtherWallet is a free, open-source, client-side interface.
- We allow you to interact directly with the blockchain while remaining in full control of your keys & your funds
- You and only you are responsible for your security.
MyEtherWallet is an Interface
- When you create an account on MyEtherWallet you are generating a cryptographic set of numbers: your private key and your public key (address).
- The handling of your keys happens entirely on your computer, inside your browser.
- We never transmit, receive or store your private key, password, or other account information.
- We do not charge a transaction fee.
- You are simply using MyEtherWallet interface to interact directly with the blockchain.
- If you send your public key (address) to someone, they can send you ETH or tokens. 👍
- If you send your private key to someone, they now have full control of your account. 👎
What is a Blockchain?
- The blockchain is like a huge, global, decentralized spreadsheet.
- It keeps the track of transactions including the amount of coins were sent and both the information about both sender and recipient, and what the balance of every account is.
- It is stored and maintained by thousands of people (miners) across the globe who have special computers.
- The blocks in the blockchain are made up of all the individual transactions sent from MyEtherWallet, MetaMask, Exodus, Mist, Geth, Parity, and everywhere else.
- When you see your balance on MyEtherWallet.com or view your transactions on etherscan.io, you are seeing data on the blockchain, not in our personal systems.
Why are you making me read all this?
Because we need you to understand that we cannot…
- Access your account or send the funds on behalf of you.
- Recover or change your private key.
- Recover or reset your password.
- Reverse, cancel, or refund transactions.
- Freeze accounts.
You and only you are responsible for your security.
- Be diligent to keep your private key and password safe. Your private key is sometimes called your mnemonic phrase, keystore file, UTC file, JSON file, wallet file.
- If you lose your private key or password, no one can recover it.
- If you enter your private key on a phishing website, you will have all your funds taken.
If MyEtherWallet can’t do those things, what’s the point?
- Because that is the point of decentralization and the blockchain.
- You don’t have to rely on your bank, government, or anyone else when you want to move your funds.
- You don’t have to rely on the security of an exchange or bank to keep your funds safe.
- If you don’t find these things valuable, ask yourself why you think the blockchain and cryptocurrencies are valuable. 😉
- If you don’t like the sound of this, consider using Coinbase or Blockchain.info. They have more familiar accounts with usernames & passwords.
- If you are scared but want to use MEW, get a hardware wallet! These keep your keys secure.
How To Protect Yourself from Phishers
Phishers send you a message with a link to a website that looks just like MyEtherWallet, EtherDelta, Paypal, or your bank, but is not the real website. They steal your information and then steal your money.
- Install EAL or MetaMask or Cryptonite by Metacert or the MyEtherWallet Chrome Extension to block malicious websites.
- Always check the URL: https://www.myetherwallet.com.
- Always make sure the URL bar has MYETHERWALLET LLC [US] in green.
- Do not trust messages or links sent to you randomly via email, Slack, Reddit, Twitter, etc.
- Always navigate directly to a site before you enter information. Do not enter information after clicking a link from a message or email.
- Install an AdBlocker and do not click ads on your search engine (e.g. Google).
How To Protect Yourself from Loss
If you lose your private key or password, it is gone forever. Don’t lose it.
- Make a backup of your private key and password. Do NOT just store it on your computer. Print it out on a piece of paper or save it to a USB drive.
- Store this paper or USB drive in a different physical location. A backup is not useful if it is destroyed by a fire or flood along with your laptop.
- Do not store your private key in Dropbox, Google Drive, or other cloud storage. If that account is compromised, your funds will be stolen.
- If the amount of cryptocurrency you have is harder than your weekly income, get a hardware wallet. No excuses. It’s worth it. I promise.
Alright, We are done lecturing you!
How to install MetaMask plugin and get a Ropsten Test Ethereum
