Quiz: Security

A hardware wallet is a physical device (which looks like a USB flash drive) specifically designed to secure your digital currency. To access your crypto using a hardware wallet, you need to unlock the device with a unique PIN. And all transfers need to be approved on the device before they can be broadcast to the network.

Phishing is when an attacker tries to access your sensitive personal information, such as account details or crypto wallet passwords, via emails or private messages on social media. Scammers who use this method will often impersonate a well-known cryptocurrency exchange company or a trusted individual within the crypto community.

Creating a secure password consists of several different elements such as making it unique, long and complex, not including personal information, and enabling two-factor authentication (2FA).

Many stablecoins can be sent or received on multiple networks. For instance, USDT can be sent through networks such as Ethereum, Tron, Solana, Polygon, Omni, and many more. It is very important to always be sure that the wallet you are depositing is compatible with the blockchain you are sending the funds from.

The most important thing is to never click on links in emails or private messages from people you don’t completely trust. Also, verify the sender’s authenticity by checking their email address or handle (for websites like Instagram or Twitter). Scammers can easily replicate a profile picture or display name, such as Elon Musk, but it is difficult for a scammer to replicate (or hack) an exact company email or social media handle. Antivirus software is very useful, but will not protect you from volunteering information to scammers.

A private key can be represented in a number of ways, for example: a string of 256 ones and zeroes, a QR code, or a 64-digit hexadecimal number i.e 9873H79C6D87DC0FB6A5778633389F4453213303DA61F20BD67FC233AA33263. Seed phrases are represented as a series of random words and can help you access your account if you lose your password.

Rug pulls are a form of cryptocurrency scam. They often take the form of new crypto projects offering rates or incentives that are too good to be true. After the project receives substantial investments, the developers “pull the rug”, shut down operations, and make off with investors’ money.

Cold wallets are the most secure way to store crypto because they are not online wallets and therefore far less susceptible to hacking. Transferring funds to and from a cold wallet is a little more involved and require you to have your wallet on you if you want to access your funds. For these reasons, cold storage wallets are ideal for long-term holds, not short-term trading. There are two main types of cold wallets: hardware and paper wallets.

It’s important not to use any dates, pet names, street names, or other personal information relevant to you that could be easily guessed. Hackers will target users whose information can be found online. If you use a weak password combination it makes their job very easy.

A reputable exchange will offer a range of security options, excellent customer support if you need help with something, and a high score on community review websites, such as Trustpilot.