Investment Safety Guide
First Things First
The biggest threat is none other than YOU. Seriously, the best hardware wallet in the world won’t protect you from simple mistakes that are taking place in the NFT Space too often..I believe a staggering 99% of the scam is successful because YOU assist these scammers. Scammers are targeting our community today. Always keep your guard up and aware of scams.
Always proceed with caution. Never rush your actions. Remember, engaging in NFT (as well as cryptocurrency) activities your transactions are transparent, traceable, and open for the public to see. However, the burden of wallet security is on us as users/custodians/owners of the wallet contents, that’s the nature of blockchain technology.
You need to be very careful about the NFT-related websites you visit and actions you carry out from your devices, it’s easy to get duped by scammers and fake people posing as someone you are familiar within the internet.
• NFT Project owners and its team (including discord moderators),even someone you are familiar with (in fact your family members) will never DM you to ask any of your credentials..most especially your
• Think before you click, don’t trust “strangers” on the internet. This applies to link, images, GIFs, as well as video. These sources can be manipulated and can jeopardize your assets.
• Highly recommended to disable DM’s on discord and avoid engaging private discussion via twitter, Instagram or other social medias because most scammers use this avenue to communicate.
Owning NFTs and cryptocurrencies means that you are liberated from relying on financial institutions but are also in a terrible position if you ever lose your assets. Nobody’s coming to help you because you the bank and are responsible for everything that happens to your funds. Take your security seriously because you cannot be refunded/reimbursed.
NEVER, EVER use or share your recovery key (seed phrase / pass phrase) for ANYTHING but resetting/recovering your wallet. Storing your seed phrase on any device that has access to the internet leaves you highly susceptible to a number of attack vectors.
DO NOT store your seed phrase in a notepad, on your computer or in your emails. This is no different as entering it on a scam site. When we say “do not type your seed phrase” we mean NEVER TYPE IT AT ALL ON YOUR KEYBOARD. And also NEVER take a photo of it either (as it’s effectively the same thing).
Consider setting up 3 separate wallets (a dedicated burner wallet for minting projects, a trading wallet, and a vault). This strategy greatly reduces the chances of loss if used correctly. This is secure enough but if you can manage more, each wallet will ONLY be access using different browsers.
Using a hardware wallet is highly recommended especially when you have higher value crypto or NFTs. Anything you do not want to lose should definitely NOT be stored in a wallet that was generated via MetaMask and it’s kind, on a computer or mobile device.
Hot vs Cold Wallets
Cryptocurrency Wallet by definition is a method of storing cryptocurrency. The term wallet doesn’t serve its function as a normal/physical wallet does for your money (fiat). A cryptocurrency wallet stores both the private and public keys of a cryptocurrency user to a point of safety that no one can gain access to their tokens without permission, meaning that if you have lost access to your own keys you will be locked out and will not be able to access your tokens at all.
Hot Wallets are the most common types of crypto wallets because they are simple to set up and easy to use. When you create an account on an exchange, download a mobile wallet or download a desktop wallet on your laptop you are creating a hot wallet.
Hot Wallets are meant for everyday cryptocurrency users as hot wallets are connected to the internet, you can seamlessly make crypto transactions with the clicks of a few buttons on your phone or computer.
While hot wallets stand out for their ease of use they have major security throwbacks. Therefore, storing a large amount of digital assets in a hot wallet is NOT advisable as it leaves your funds exposed to potential security threats such as cyber thefts.
Cold Wallets are considered the more secure cryptocurrency storage solution as they are not connected to the internet you only connect your cold wallet to the internet when you want to make a transaction.
Hardware wallets and paper wallets are both cold wallet options, however hardware wallets are more popular as they are easy to use and come with customer support provided by the manufacturer. Hardware wallets use a physical medium typically in the shape of a usb stick to store the wallet’s private keys, making them de facto unreachable to hackers or other malicious parties.
To store crypto in your hardware wallet, you send it from a hot wallet to your hardware wallet’s public address. Conversely, if you want to send crypto from your hardware to another address, you connect your hardware wallet to the internet via the wallet’s dedicated software and then sign the transaction with your private key.