Cryptocurrency Security Best Practices
Safety First! Safeguarding Your Assets: Staying Protected in Web3
Keep these tips in mind to stay secure in the crypto space
Web3 offers countless opportunities for users to access powerful decentralized applications.
However, as you may have heard before, with great power comes great responsibility.
With the testnet launch of the Lumerin Hashpower Marketplace, and many of our community members mining Bitcoin through on-chain, peer-to-peer hashrate contracts, we wanted to revisit the basics of security best practices.
Here are some fundamentals you should always keep in mind when navigating Web3.
1. Conduct Thorough Research
Before participating in any DeFi project, conduct comprehensive research.
Evaluate the project’s legitimacy and background, community engagement, code, and smart contract functionality. Investigate the project’s reputation and seek out feedback from experienced community members.
It’s always a good thing if the project you’re researching is open-source. This means that the app’s code is available for everyone to see, which guarantees transparency.
You can review Lumerin’s information and data at Lumerin.io and Lumerin’s Github page.
2. Secure Your Private Keys and Seed Phrases
Cryptographic private keys and seed phrases are your way of showing the blockchain that you’re the owner of your wallet and assets — they’re the single most important aspect of cryptocurrency wallets.
As such, it’s fundamental to always keep them safe. Store them securely, preferably in an offline device such as paper or engraved metal. Avoid sharing them with anyone and be cautious of phishing attempts seeking to obtain your sensitive information. But most importantly, never, ever send them through emails, text messages, or enter them in any websites.
3. Start Small
If it’s your first time interacting with a new protocol or decentralized application, it’s always a good idea to start with small amounts until you become familiar with the protocols and gain confidence in their security.
At Lumerin, we understand that starting with a new platform can be overwhelming, which is why we launched on testnet in the first place.
During the Lumerin Hashpower Marketplace beta, users can navigate and interact with the platform, acquiring hashrate contracts to mine real Bitcoin using test Lumerin tokens. In other words, they get to try out the marketplace’s functionality without the risks of making mistakes — and they get to keep the rewards as well!
If you’re interested in trying it out, make sure to sign up for the Lumerin Explorer Program and download the Lumerin Wallet now!
4. Understand Risks and Responsibilities
Web3 is still a new ecosystem, and as such, there are many aspects that haven’t fully developed yet.
As a user, it’s fundamental that you understand that there is always some degree of risk involved in interacting with decentralized applications, even when they are open-source and have had their code audited.
Make sure to thoroughly acknowledge the risks involved in these activities and carefully read and comprehend the terms and conditions of each protocol, including any potential risks and fees associated with your participation.
Specifically in the Lumerin Hashpower Marketplace, you should learn how hashrate contracts work and how the hashrate and payments are delivered to each of the parties. Also, ensure that you carefully read the details of each hashrate contract before you buy them to avoid any surprises or mistakes.
You can learn more about this in the Lumerin Blog or by joining our Telegram channel!
5. Be Wary of Scams, Impersonators and Phishing Attacks:
Whenever a new project starts growing and becomes popular, you can expect ill-intentioned impersonators that will try to pose as them to trick people into giving up their funds.
Remember to always be aware of imposters posing as legitimate projects, team members, or community moderators. One common tactic these impersonators use is creating fake Telegram and Discord accounts and sending direct messages to community members asking if they need help — this is why you should always be the one to DM the moderators first.
Email and social media are other popular channels used by scammers. Be cautious of phishing attempts through these types of platforms.
Also, try to always verify the authenticity of communication channels and double-check URLs to avoid falling victim to scams or phishing attacks.
6. Regularly Monitor Your Activity
As the crypto industry continues to evolve, more sophisticated scam tactics follow along.
For example, scammers may send you fraudulent imitation tokens to confuse you into swapping them for real tokens, draining the funds from your wallet.
If you plan to be an active web3 user, you should keep a close eye on your activities and regularly review your transactions, account balances, addresses and associated smart contracts.
You can also set up alerts and notifications to receive updates on your assets’ movement or any suspicious activities to react promptly to any signs of unusual or unauthorized access.
Staying Secure Requires Active Efforts
While the web3 space provides exciting opportunities for financial empowerment and growth, it is crucial to prioritize security measures to safeguard your assets.
By following these security tips, adopting best practices, and staying informed about the latest threats and advancements, you can significantly reduce the risk of falling victim to scams, hacks, or other security breaches.
Remember, prioritizing security is essential to protect your hard-earned assets and navigate the exciting world of cryptocurrency with confidence.
Download the Lumerin Wallet desktop app and start mining Bitcoin hardwareless today!
