20 Security Rules for Cryptoland, IOTA, and Trading you should know

20 Security Rules for Cryptoland, IOTA, and Trading you should know

Cryptoland is growing on all ends and new people from all over the world start to look for new opportunities.

This digital era enables many ways to make money, to find new jobs, or to create new business models for your company.

As the majority of newcomers are targeted by organized groups, in order to scam their money, I decided to make a short list of important rules you should keep in mind, when entering this shark-pond.

 

1. Most important rule: stay up to date.

The majority of software you will find in this cutting-edge area of the Internet is not in the release-candidate stage.

Most of the projects are in alpha or beta stage, so in order to get all the important information, you should check the software and currencies you are using for updates. The more often, the better.

Vital updates, bugs, and security vulnerabilities are part of the daily madness in cryptoland.

Therefore, you should check the official channels of all currencies and projects you’re invested because you have no guarantee at all that everything is working like it did yesterday.

Twitter is one of the best sources for that!

 

2. Don’t rush into important decisions

Some decisions are expensive. If you have important news, and it happens to be the case that you think you can read the markets, think about it twice before you set a buy- or sell order.

That also applies to software you are using. Before deleting wallet-software, or backups, ensure that there are no important files like “wallet.dat”, or password lists.

Too many people lost their money because they acted too fast. Don’t be that person.

 

3. Invest after due diligence, not after recommendation

An investment in cryptoland can be many things.

In most cases, you lose your money, especially if you blindly follow recommendations of tweets, strangers of the Internet, or persons you barely know.

In almost every social channel, you will find a flashy advertisement for every currency out there, for every upcoming ICO or IPO.

The flashier these advertisements are, the more due diligence you should do.

Take your time, read into it and decide where to invest if you have a solid overall understanding.

Look for the developers, for criticism, for the technical perks, unique features, for warnings, PSA’s and for the long-term vision of a project.

 

4. Don’t do margin trading without experience

If you’re new to cryptocurrencies, never do margin trading. People underestimate these markets and its unique behavior.

Most Exchanges are not regulated. Influential parties can manipulate the course with a trading bot to their advantage. That happens all the time.

If you think you can read the markets and you leverage your funds with factor 10 or factor 100, the chance of losing everything is extremely high.

The volatility in cryptoland is as high as it gets, even stock markets are nothing compared to the flash-pumps and crashes, that happens many times a day.

If you decide to invest, start with exchanging your money to cryptocurrency and watch the charts for a while before training margin trading with very little amounts.

 

5. Don’t trade OTC without an escrow

Lots and lots of people are looking for an easy way to purchase cryptocurrency without signing in at an exchange, which can be time consuming and annoying.

These Over-the-counter (OTC) trades are extremely dangerous as the majority of these offers are a scam.

So, in order to trade securely, you have to look for an Escrow service, a trusted person that acts as a middleman.

There are some trusted escrows in every cryptocurrency community, so ask around and find a person that has been vouched for multiple times.

The biggest Cryptocurrency forum Bitcointalk has a reputation system, that should never be trusted, though.

Many accounts with high reputation are bought, hacked, or backed up with false votes.

Instead, go into a high frequented thread and ask many different trusted members, you eventually find a trusted escrow.

 

6. Trust no one

Everyone should be treated as a total stranger that wants your money.

That’s not a very nice way to deal with humans, in cryptoland, however, it’s an important rule to keep your funds in your hands.

Big parts of cryptoland are unregulated, fabricated, set up, just to scam people.

 

7. Niceness isn’t for free – be suspicious

As a general rule: be suspicious if someone is too nice. Nothing is for free, especially where people can send and receive thousands of Dollars with just a click.

 

8. Read the real link, not the alias link in the browser

To ensure that you are lead to a legit page, hover over the link and read the real link on the status bar of your browser.
Additionally, compare the given link with the help of google with the place that it’s supposed to link you to.

There are many successful phishing attempts with copies of exchanges, online wallets, etc.

 

9. If you get an unexpected Email, ensure that the sender is legit

Never trust the sender of an email.

If you use one email for everything, there is a high probability that someday, you get phishing emails with a wrong name. Read the header and real email closely, to ensure that the sender is legit.

 

10. Don’t log in over links or login-windows in emails, only on the page you know

One of the most important security advice in cryptoland: never log into an account over a link or a log-in-page in an email.

Instead, go the usual way, or over Google, login and look for announcements, if you are invited to check your account.

A big piece of the scam-pie is working over email, so be careful with dealing with “official PSA’s” via email.

 

11.  Don’t click a link if you don’t need to

You have no business with a new, unknown service, some guy sent you via direct message somewhere? Don’t click it and gather information about it on Google instead.

 

12. Check sources of programs and wallets

If you are looking for a wallet-link or software connected to a cryptocurrency, compare given links and ensure that you use the original source, mostly via Github. Google can help you to find the right source.

 

13. If you generate a seed, don’t trust online-generators

Online password or seed-generators are a comfortable way –for scammers.

You should never use such a service if you are unsure whether it’s legit and secure or not.

For generating a secure password or seed, I recommend you use KeePass instead. An open source solution that has a long history of happy users.

 

14. Protect your accounts, not only with 2Fa

Just recently, a new way to hack almost every account or service has been revealed: Malicious groups and hackers get control over your smartphone and use the authentication service and the 2-factor authentification to circumvent every security-measure that is protected via 2FA.

To prevent anyone from login into your account and stealing your funds and information: activate all available options, such as email, additional question etc.

Additionally, you can buy a second sim and a second, cheap smartphone, that you use solely for 2FA such as Google Authenticator.

 

15. Chose the right passwords

The longer the passwords, the better.

There are many recommendations to generate a secure password with a high entropy. KeePass enables an incredibly high entropy.

A good source of information regarding passwords is on the CERN-page

Please keep in mind, that the IOTA seed comes with its own recommendations, that can be read here.

 

16. Use different Computers for surfing and handling your funds

Although this sounds like an overkill, it’s a splendid way to prevent you from getting scammed: Use two different system for browsing and managing your funds.

You never know if your system is infected. Good security software is just one side of the story, a different system is way better.

 

17. Never tell people how much you own

Would you go onto the street and tell anyone your bank account value? Of course not.

As in point 6 explained, don’t trust anyone. For scammers, this is a valuable information. Never share your net-worth.

 

18. Don’t leave the majority of your investment on an exchange

In the past, nearly every exchange had security issues, or they were hacked.

In order to prevent that from happening to you and your funds, you should never leave the majority of your investments on an exchange.

Exchanges are never safe.

In the real world, except a few exceptions, almost every Bank has been robbed too. Cryptoland is no difference, in fact, it’s almost inevitable.

19. Secure your funds offline, multiple times

If you have the option to store your private keys/seeds/funds offline or in a hardware wallet -do it.

Hardware wallets like Trezor or Ledger Nano S have been reliable in the past.

 

20. Use a different bank account for cryptoland and your real-life

For the security enthusiasts, it’s a good way to monitor all your doings, expenses, and tax related questions.

Use an additional bank account for cryptoland.

That way, you have always a good overview over your costs, wins and losses and it’s incredibly easy to deal with the IRS or your tax-institute.

 


 

I hope this list provided you with some interesting information regarding the security in cryptoland.

Feel free to leave me a comment if you have questions, additional points or concerns.

Thank you,

Limo

 

 

 

6 Replies to “20 Security Rules for Cryptoland, IOTA, and Trading you should know”

  1. Hello.
    When will iota be added to other exchanges?
    Any information is of interest.
    My friends from the US want to buy a lot of iota

  2. Hi, I have one question.
    Do Hard wallet companies have a copy of your private keys in order to help you if you lost you hardware?? Thank you.

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisment ad adsense adlogger