How Not to Lose Your Crypto: Security for Beginners
Crypto has no support desk that can reverse a transfer or return stolen funds. A few simple habits matter more than any return.
The main rule: your seed phrase
A seed phrase is the 12 or 24 words a wallet shows when you create it. Whoever knows those words owns the coins. A password can be changed; a seed phrase cannot.
- Never share it with anyone. No exchange, wallet or “support agent” ever asks for a seed phrase. If someone does, it is theft.
- Paper or metal only. No photo, no notes app, no cloud, no messenger, no email.
- Two copies in different places. A fire or flood should not destroy the only record.
Exchange or your own wallet
An exchange is convenient for buying and selling, but the exchange holds the keys to the coins. If it is hacked or freezes withdrawals, you depend on it.
In your own wallet the keys are yours, and so is the full responsibility. A sensible approach: keep on the exchange what you actively use, and long-term savings in your own wallet.
Hardware wallets
A hardware wallet is a small device that stores the keys inside. They never leave the device, so malware on your computer cannot steal them. It makes sense once the amount becomes meaningful to you.
- Buy only from the manufacturer or an official reseller, never second-hand.
- The device generates the seed phrase in front of you. If a ready-made phrase comes in the box, it is a scam.
- Before sending, check the address on the device's own screen, not only on the computer.
Protecting your exchange account
- A unique long password from a password manager.
- Two-factor authentication through an app, not SMS: a phone number can be hijacked.
- An anti-phishing code. The exchange adds your word to its emails, so fakes stand out.
- A withdrawal address whitelist. Coins can only be withdrawn to addresses added in advance.
- A separate email used only for exchanges and nowhere else.
How theft usually happens
- Fake websites. Open the exchange from a bookmark, not from a search result, an ad or an email link.
- “Support” in direct messages. Real support does not message you first.
- Address poisoning. Scammers send a tiny transfer from an address that looks like one you use, hoping you copy it from your history. Check the whole address.
- Malicious approvals in DeFi. Signing a transaction on an unknown site can give it the right to spend your coins.
- “Send one coin, get two back.” You will not.
Checklist
- The seed phrase is written on paper, two copies, in different places.
- There is no photo or digital copy of it anywhere.
- App-based two-factor authentication and an address whitelist are on at the exchange.
- The exchange is opened only from a bookmark.
- Long-term savings sit in your own wallet.
- Large transfers start with a test amount.
Bybit is one of the large crypto exchanges. Crypto is high risk: only invest money you can afford to lose.
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Open Bybit →Decide what share of your investments goes to crypto and into what exactly.
Income Splitter →This article is educational and is not financial advice.