Wallet safety tips — Staying safe in DeFi
With the unprecedented growth of Cryptocurrency markets, more people are joining to learn about the crypto world. This has also led to a strong increase number of scams. That’s why staying safe when buying, trading and holding cryptocurrencies have never been more important.
Keeping that in mind, we decided to set up this beginner’s guide to staying safe in the world of DeFi.
To connect with Decentralized Apps ( dApps ) the first thing you require is a Web3 supported wallet. In this article, we will talk about the “Metamask wallet” which is used by millions of users worldwide.
MetaMask is a bridge that allows you to visit the distributed web of tomorrow in your browser today. It allows you to access Ethereum Dapps right in your browser without running a full Ethereum node.
Traditionally, to interact with Ethereum dApps, you would have to set up a full Ethereum node on your PC. Metamask simplifies this by allowing you to interact with Ethereum dApps directly in your browser.
Not only this, but Metamask also functions as a more secure “hot” wallet for your cryptocurrencies. Metamask can be used in combination with Hardware wallets for an added layer of security.
How to Install Metamask :
Metamask is supported on almost all major browsers like Chrome, Firefox and comes pre-installed on Brave browser.
In this article, we would be showing the Metamask extension setup process for the Chrome browser. You can follow this installation guide, for help regarding other browsers.
Firstly, go to https://metamask.io/ and click on “Get Chrome Extension”. You will be directed to Chrome Web Store, now click “Add to Chrome” and then on the pop-up, click “Add extension”.
After adding the MetaMask extension, return to your browser page. MetaMask will appear on your browser top-right corner. You may click on it to open Metamask.
The next step is to create a new wallet. After reading through and accepting the terms and conditions, you will be prompted to create a new password to encrypt your account.
Once completed, you will be given the seed words for your new account. Make sure to write these down in a safe place as it is the only way to restore lost MetaMask accounts. You can use a speciality product like CryptoSteel — a wallet seed phrase backup tool for autonomous offline storage without any third-party involvement.
Now that you have set up your secured wallet, its time to look at various attack vectors and ways to prevent them.
How to Protect yourself from Phishing
There is a saying in InfoSec “Security is Only as Strong as the Weakest Link”.
While cryptocurrencies are inherently highly secure, Humans are the weakest link. To stay safe in crypto, there are some guidelines that you can follow.
Always double-check the URLs that you use to access cryptocurrency exchanges, Dapps and any other cryptocurrency-related website. Bookmark the real websites that way, you can be totally sure that you are using the correct link.
Always use VPN for crypto-related activity. A VPN establishes a secure connection between you and the internet. All your data traffic is routed through an encrypted virtual tunnel. This disguises your IP address when you use the internet, making your location invisible to everyone.
Never share your trade size and investment amounts on social media as that brings unwanted attention and makes you a target.
Additionally, you can switch from Chrome to more privacy-focused browsers like Brave browser. Brave does not track your online activity and is also faster and uses less battery than other browsers.
How to interact with dApps safely
With the TVL ( total volume locked ) under Defi growing faster than ever. We are seeing many new dApps launching on daily basis. While you might be curious to test out the new un-audited dApps, its never a good idea from a security standpoint. We have listed some guidelines that you should follow to have a safe experience in DeFi.
Lock your Wallet: Your unlocked MetaMask exposes the currently selected address in MetaMask to every tab you have open. If you ever switch between accounts in MetaMask while it’s unlocked, every tab you have open will also know about that other account. From knowing your most recent transactions, an attacker can leverage highly targeted campaigns against your MetaMask wallet.
To lock your wallet, go to the main account menu and click the LOCK button.
Revoke Access to websites: You should revoke access to the website after using it. This prevents the website from directly accessing your Metamask without your permission and protect you from hacks.
To revoke access go to the account options menu (the 3 dots) and click on CONNECTED SITES. Here you can see all the sites you have granted access to and can revoke access to each of them.
Unlimited approval problem: Many DApps have the habit of requiring you to approve an effectively unlimited amount of tokens. This helps to improve the user experience, as you only have to sign off an approval once and it will be enough for all future transactions.
However, this also means that the DApp (or the person/entity controlling it) can at any time transfer all of your tokens, without requiring any further approval.
Besides, there is no concept of expiring approvals. Once approved, the approval will remain forever. If you do not trust a DApp or its operators anymore, there is usually no easy way to remove the approval.
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Pioneers of Community Governance Economic Model (C-GEM) where DHC is run and governed by the community members. DHC is one of the most active and vibrant crypto communities and incubator fund in the investment space. It is backed by a team of professional and trusted entrepreneurs and researchers with many years of experience.