April 20, 2024

Ensuring Secure Crypto Transactions: Essential Best Practices

When sending substantial amounts of cryptocurrency to another wallet, it's crucial to prioritize security to safeguard your assets. Here are key practices to follow:

1.  Always Verify Recipient Details:

Always double-check the recipient's address before initiating the transaction. Copy and paste the address or use a QR code to minimize errors. Verify ALL the characters of the recipient address before sending.

2. Use the best in class providers

Utilize well-established and reputable exchanges/wallets for transactions. Platforms like Coinbase, Kraken, Bitstamp, Gemini, Ledger and Trezor have strong security measures in place, reducing the risk of fraud or hacking.

3. Implement Two-Factor Authentication (2FA)

Enable 2FA for all accounts associated with crypto transactions. Utilize dedicated authentication apps like Google Authenticator for enhanced security, avoiding SMS-based 2FA susceptible to SIM-swapping attacks.

4. Diversify Storage Solutions

Avoid keeping all your crypto assets in one place. Utilize hardware wallets (Cold) for long-term investments and software wallets (Hot) for regular transactions. This diversification minimizes the impact of potential security breaches.

5. Secure Private Keys and Seed Phrases

Never share your private keys or seed phrases with anyone. Store them offline in secure locations and avoid cloud storage or online platforms. Consider engraving seed phrases or using dedicated offline devices for storage.

6. Beware of Phishing Attacks

Remain vigilant against phishing attempts, especially through fake apps or websites. Double-check URLs and only access platforms through official channels. Be wary of unsolicited emails or messages requesting sensitive information.


These are just some of the best practices for keeping cryptocurrency transactions secure. The most important aspect to be mindful of is social engineering. The majority of scams or "attacks" in the crypto space can be attributed to phishing and social engineering, where individuals impersonate others or attempt to access your wallet by deception. It's crucial to remain vigilant against these threats. You can find more recommendations on our website.

Secure Practices: Defending Against Cyber Threats and Attacks

Phishing is the most common type of social engineering, deceiving, pressuring or manipulating people into sending information or assets to the wrong people. Social engineering attacks rely on human error and pressure tactics for success. The attacker masquerades as a person or organization the victim trusts— like a coworker, a boss, a company the victim or victim’s employer deals with—and creates a sense of urgency to make the victim act rashly. Hackers and fraudsters use these tactics because it’s easier and cheaper to trick people than to hack into a computer or network.
To confirm Legitimacy of the Website:

Carefully examine the website's URL to ensure it matches the legitimate domain.

Avoid clicking on links from unsolicited emails or messages and instead type the website address directly into the browser.

Cross-reference the website's URL with official sources, such as reputable forums or social media accounts associated with the platform.

Check for spelling errors or inconsistencies in the domain name, as phishing websites often use slightly altered URLs to deceive users.

Consider bookmarking the legitimate website for future reference to avoid accidentally visiting phishing sites.

How Address Poisoning Works 

Target Identification: Malicious actors exploit the public and transparent nature of crypto blockchains by searching and Identifying wallet addresses.  As records of addresses and their interactions are usually publicly available via various blockchain explorers. 

Address Generation: After picking their targets they then use a vanity address generator to create a fake wallet address closely resembling the target's or their trading partner's address. 

Due to the long nature of wallet addresses some users may just take note of the first/last few characters of their wallet address so scammers exploit this tendency.

Address Poisoning: They then proceed to send a small amount of crypto or NFTs to the victim's wallet address using the fake identical address they generated. The goal is to "Poison" the victim's transaction history by introducing a deceitful transaction, they usually send worthless tokens.

The Sting: Subsequently, the scammers anticipate that when the victim is about to engage in a transaction, whether sending or receiving funds, the victim will  carelessly not notice the difference due to the similarities in both addresses.   

The victim copies and pastes the scam address from the transaction history, unknowingly falling into the trap set by the scammers. 

This tricks the victim into sending funds to the scam address. Once funds are sent to the wrong address, the immutable nature of on-chain transactions makes recovery impossible, leading to irreversible loss.

Monitor for Data Breaches: 

Regularly check if your email address has been compromised in any data breaches using reputable services like https://haveibeenpwned.com/. If your email address appears in a breach, take immediate action to change the associated passwords for affected accounts. Monitoring for data breaches helps you stay proactive in safeguarding your online accounts and personal information from unauthorized access or misuse.

Exercise Caution with Blockchain Contracts: When engaging with blockchain contracts or decentralized applications (dApps), be extra vigilant and double-check the legitimacy of the websites or platforms involved. Before interacting with any blockchain contract or dApp, verify the website's SSL certificate to ensure that you are visiting the legitimate site. For example, when using popular platforms like OpenSea for NFT transactions, always ensure that the website's URL begins with "https://" and that the SSL certificate is valid. This precaution helps mitigate the risk of falling victim to phishing attempts or fraudulent schemes targeting users of blockchain technology.

Other Recommendations

Strong, Unique Passwords: Use complex passwords for all your accounts, incorporating a mix of upper and lower-case letters, numbers, and symbols. Avoid using easily guessable information like birthdays or names. Consider using a reputable password manager to securely store and manage your passwords.

Avoid Public Wi-Fi for Transactions: Refrain from conducting sensitive transactions, such as online banking or shopping, over public Wi-Fi networks. Public networks can be vulnerable to interception, putting your personal information at risk. Instead, use a secure, private network or a virtual private network (VPN) for these activities.

Keep Software Updated: Regularly update your operating system, antivirus software, web browsers, and any other software you use. Updates often contain patches for security vulnerabilities, so staying current can help protect you from known threats.

Exercise Caution with Emails and Links: Be wary of unsolicited emails, especially those containing links or attachments. Phishing emails often mimic legitimate messages to trick users into revealing sensitive information or installing malware. Verify the sender's identity and hover over links to check their destination before clicking.

Secure Your Devices: Ensure that your devices are protected with up-to-date antivirus software and firewalls. Additionally, consider encrypting sensitive data stored on your devices to prevent unauthorized access in case of theft or loss.

Practice Safe Browsing Habits: Be cautious when visiting websites, especially those with suspicious or unfamiliar URLs. Avoid downloading files from untrustworthy sources, and use HTTPS-enabled websites whenever possible to ensure secure communication.

Backup Your Data Regularly: Create regular backups of your important files and data, either using cloud storage services or external hard drives. In the event of a ransomware attack, hardware failure, or other data loss incident, having backups can help you recover your information without paying a ransom or suffering permanent loss.

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