How to stay safe on Blockchain in 2023

by Arthur · January 19, 2023

When discussing anything related to Web3, many will question the security and/or legitimacy of it. While many advancements for technology and entertainment are being created, it is noted that time after time people and organizations are out to harm people and their wallets.

NFTs and Crypto pumps and dumps were a common thing on a mass scale in 2021 and 2022 where individuals were promised huge gains and benefits by project managers. As a result of the naivety of many, a lot of money has been lost.

A recent report from ImmuneFi has noted that a staggering $3.9 billion was lost in crypto-related incidents last year, a number that increased from the previous year. Expected due to more people getting on board the blockchain, but still alarming.

Popular blockchains such as Binance and Ethereum were recorded to be at the forefront of these attacks, indicating that hundreds of thousands and even millions of people are at risk of losing their assets.

If you are a bit of a “newbie” to the blockchain, it is important to you know the right actions to ensure you are safe from malicious attacks. After all, with everything being decentralized in nature, there is no government or body to retrieve your lost funds.

Table of Contents

Hardware wallets

The first way someone can stay safe on the blockchain is through buy a hardware wallet. These devices offer users a safer and more secure way to store crypto instead of through the exchange wallets associated with exchanges like Binance and Coinbase.

Although exchanges generally have a security infrastructure in place to protect their customers, time and time again we have seen hackers weave in and compromise people’s funds and assets.

Furthermore, exchanges are not financially stable as we have seen with the collapse of FTX. Billions in crypto were lost and no one has been able to recover lost funds. This is where Hardware Wallets come in.

You can buy cryptos either directly through wallets or transfer them from exchanges. What makes them so safe is the fact that you make one Password with 24 words of very random words. There are technical factors involved, but to keep it comprehensive see a hardware wallet as a crypto safe for your money.

We recommend going for a Ledger Wallet, they have different products available. Retailers like Amazon stock Ledger Hardware making them a household name in Web3 security.

Buy from trusted exchanges and marketplaces

Our next tip for blockchain security is to buy crypto and/or NFTs from well-trusted exchanges. As the space has gained a lot of influence, many fake websites have been set up to take people’s money and leave them without their desired asset.

We recommend buying crypto either directly through your hardware wallet or on Binance and Coinbase. Gemini is another reliable crypto exchange, restrictions on their services depend on your location, so be sure to check it out before signing up.

For NFTs, this will depend on the blockchain and the project. The notable ones are:

Magic Eden (Solana)
Binance NFT Marketplace (BNB)
OpenSea.io (Ethereum)
Rarible (Ethereum, Solana and Tazos)

If you’re playing a game like Blanko’s Block Party or The Sandbox for example that has NFTs integrated into the game, be sure to buy/sell them on their designated in-game marketplace.

One last thing to note when dealing with exchanges and marketplaces is to make sure the URL you click is legitimate. Scammers can easily set up fake URLs for these sites and cause people to lose their money. If you’re not too sure about the URL, you can just search for it yourself in your browser. You can never be too sure when working with the blockchain.

Keep your login details safe and private!

While this seems like common sense, you’d be surprised how much crypto is lost from people forgetting their passwords. Lifestyle magazine ‘HypeBeast’ reported it way back in 2021 $140 billion was lost due to users not having passwords handy. We can imagine that this figure could grow in 2023.

Always record your details physically. Furthermore, if you are familiar with hardware wallets, you will be aware of the random 24-word password. Forgetting this will prove detrimental as there is literally no way to recover this if lost/forgotten.

Non-custodial wallets like Metamask also work with “Secret Recovery Phrases”. Made up of 12 random words, this password is a master password of sorts. To change your account details for Metamask you need to have this handy.

Don’t invest in things you don’t understand!

Again, you’d be surprised how many people invest in things they don’t understand. “Fomo” is a real thingespecially within Web3 when outsiders look in and see people making fortunes, they want a piece of the pie, and rightfully so!

It is best to research the blockchain and the different resources available and how you can acquire them. It can be quite technical and with gas fees on blockchains like Ethereum you will incur additional costs for transactions.

If you are skeptical about a new project, YouTube and Twitter are usually a good place to research. Checking out Crypto/Web3 specific influencers take on the projects can be beneficial, but always go with your gut on whether you think a project has value. It is fundamental to a project, such as the utility value and the technology that drives it.

Projects on Twitter usually have clear signs of foul play and illegitimacy through the number of followers and engagement. For example, if a project has 100,000 followers and only averages around a hundred likes on most posts, you might want to be careful.

One thing we can say is to not listening to standard influencersa prominent example is the Paul brothers who have been accused many times now of foul play and even previous legal action against them regarding crypto related campaigns.

Blockchain education

You’re in luck if you’re new to this Web3 fiasco. Both Binance review and Coinbase offer educational resources on their websites.

They are easy to follow as you read through the content and then answer questions about your learning. The best part is you can earn crypto and NFTs for completing tasks!

We hope you enjoyed this guide. Being confident in the blockchain list is essential and it is best practice to always thoroughly understand these technologies. Why not learn about Web3 with your friends and family in 2023, who knows you could make it big if you play your cards right!