I expect to get hacked one day
In my guide to getting started with crypto, I point out how important security is, it should be your number one priority. The things which give crypto an advantage over Fiat also make it a target for hackers.
Where a bank protects your money and refunds you should your account get hacked, with crypto you are the bank, if you are hacked then you have lost your crypto. Cyber crime is a massive issue for the banks which is why they invest in so many procedures and protocols.
So, just as the banks care so much about security, as you are your own bank, you also need to care about your security. The following post on Medium is a great example of where, even someone who thought they had done everything, still had their Coinbase account hacked and lost $8,000 of Bitcoin.
While I feel sorry for Cody, this is one of many lessons for us in how person security protocols are important with crypto, especially if you have a decent position.
When I decided to go public and start sharing my crypto journey I was aware I was creating a target for hackers. I won't ever share my security protocols, they are pretty tight. I have no single point of vulnerability and I hope it's enough. I am though perfectly aware that hackers are smart and always developing new methods.
One of the reasons I started sharing crypto content is I wanted to be accountable for my strategy. A few times over the last couple of months I have done stupid things, a post for another day, but as an example, I didn't keep to my 5% for 25% money off the table. This cost me during the recent correction. The blog keeps me accountable.
Similar to security, I operate with an attitude of expecting to get hacked, as such I am accountable to the security procedures I have in place.
So I urge you to create your own protocols. There is a whole bunch of information about this online, the most important things I think are as follows:
- Always use unique passwords for everything and never keep them stored on a computer or phone
- Purchase a hardware wallet such as a Nano S or a Trezor
- Always check the URL of the website you are using, hackers create fake versions of exchanges change one character, for example, bittrex.com could be faked as blttrex.com, looks similar right?
- Store your crypto safe, you wouldn't keep thousands of pounds in your house so don't keep thousands of pounds of crypto there
- Install the best security on your computer and keep it updated
- Don't open silly attachments in emails you don't know where are from
- Don't watch porn on the computer you trade crypto from, sorry, asking for trouble
- Always use two-factor authentication, my preference is Google Authenticator, DON'T ever use SMS two-factor authentication
- Never use your normal email address for crypto services
- Setup two-factor authentication for your email
- Don't keep large volumes of crypto on mobile wallets
- Don't use web wallets
There is probably a whole lot more. Just use your common sense and make sure you focus on keeping this front of mind.
If you have any questions then please give me a shout.