Security Essentials

Ethereum gives you complete control over your money—but with that freedom comes responsibility. Learn how to keep your crypto safe from scams, hacks, and mistakes.

The Golden Rule: You Are Your Own Bank

In traditional banking, if you forget your password, you can reset it. If someone steals your credit card, the bank can reverse the charges. With Ethereum, there's no customer service to call.

You control your crypto with a private key or seed phrase (12-24 words). Anyone with these words controls your funds. If you lose them, your crypto is gone forever. If someone steals them, your crypto is gone forever.

This isn't meant to scare you—it's meant to help you take security seriously from day one. Follow these guidelines and you'll be fine.

Protect Your Seed Phrase

Your seed phrase (also called recovery phrase or backup phrase) is 12-24 words that act as a master key to your wallet. Protecting it is your #1 security priority.

DO:

Write it down on paper or metal (fireproof/waterproof backup)
Store it in a secure location (safe, safety deposit box)
Keep multiple copies in different secure locations
Tell a trusted person where to find it if something happens to you

NEVER:

Take a scNreenshot or photo of your seed phrase
Store it in email, cloud storage, or password managers
Type it into any website or app (scammers love this trick)
Share it with anyone—not even "support" claiming to help you

Choose the Right Wallet

There are two main types of wallets, each with different security levels:

Software Wallets (Hot Wallets)

Apps on your phone or computer (MetaMask, Rainbow, Coinbase Wallet). Convenient for daily use but connected to the internet, making them more vulnerable to hacks. Good for small amounts you use regularly.

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Hardware Wallets (Cold Wallets)

Physical devices (like a USB drive) that store your keys offline. Your seed phrase never touches the internet. Essential for large amounts or long-term holdings. Industry leaders include Ledger and Trezor.

Best practice: Use a software wallet for small, everyday transactions and a hardware wallet for serious holdings. Think of it like carrying $100 in your pocket but keeping your savings in a safe.

Recognize Common Scams

Crypto scammers are sophisticated. Here are the most common tricks:

Fake Support: Someone messages you claiming to be from MetaMask, Coinbase, or another service, asking for your seed phrase to "verify your account" or "fix a problem." Real support NEVER asks for your seed phrase.

Phishing Websites: Fake websites that look identical to real ones (like "metamask-support.com" instead of "metamask.io"). Always double-check the URL before entering any information.

Airdrop Scams: Messages saying "You've won free crypto! Click here to claim!" If you connect your wallet to their site, they drain your funds. Real airdrops don't require you to connect your wallet or send crypto first.

Too Good to Be True: "Send 1 ETH, get 2 ETH back!" or "Guaranteed 50% returns!" If it sounds too good to be true, it's a scam.

Rug Pulls: New tokens or NFT projects that disappear after collecting money. Research any project thoroughly before investing.

Safe Transaction Practices

Always verify addresses: Before sending crypto, triple-check the recipient's address. One wrong character means your funds are gone forever. For large amounts, send a small test transaction first.

Watch out for malware: Some malware changes wallet addresses when you copy/paste. Always verify the full address after pasting, not just the first few characters.

Understand gas fees: Check the gas price before confirming transactions. During network congestion, fees can spike unexpectedly.

Revoke approvals: When you use DeFi apps, you often grant them permission to access your tokens. Use tools like revoke.cash to remove permissions you no longer need.

Additional Security Tips

Use a dedicated device: Consider using a separate computer or phone exclusively for crypto to reduce malware risk.
Enable 2FA: For exchange accounts, always enable two-factor authentication (preferably with an authenticator app, not SMS).
Keep software updated: Regularly update your wallet apps, browser, and operating system to patch security vulnerabilities.
Don't brag: Avoid posting about your crypto holdings on social media. You become a target.
Be skeptical: If someone reaches out to you first offering help, opportunities, or claiming you won something, it's almost always a scam.
Trust your gut: If something feels off, it probably is. Take your time, do research, and never act out of FOMO or pressure.

What If Something Goes Wrong?

If you lose your seed phrase: Your funds are unrecoverable if you don't have a backup. This is why multiple secure backups are critical.

If someone steals your seed phrase: Immediately create a new wallet and transfer any remaining funds. The compromised wallet is permanently unsafe.

If you make a mistake: Blockchain transactions are irreversible. There's no undo button. Double-check everything before clicking confirm.

Stay Safe Out There

Security might seem overwhelming at first, but it becomes second nature. Take it slow, follow these guidelines, and never rush into anything. The crypto community is here to help—just make sure you're getting advice from legitimate sources.