8 Ways To Stay Safe In Web3 - 2023 Guide

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8 Ways To Stay Safe In Web3 - 2023 Guide - NFT.com

Alec Otto

Jan 10th, 2023

4 min read

Image of lock on a keyboard with credit cards.

Web3 is an exciting evolution of the internet that enables a wealth of new opportunities.

But like all things on the internet, your web3 accounts are susceptible to the same hacks and scams that we see in web2 today.

Web3 users must employ good security practices to protect their assets from being accessed or stolen by unauthorized parties.

Let’s look at 7 tips that can help you stay safe in web3!

1- Use a solid and unique password for your web3 accounts.

Web3 accounts typically hold valuable assets such as cryptocurrency, NFTs, or important information. Using a strong and unique password helps to protect these accounts from being accessed by unauthorized individuals.

A strong password is long, complex, and challenging to guess. It should also include a combination of letters, numbers, and special characters.

A unique password is one that is only used for one account. Every account you have should use a separate password. That way, if one of your accounts is compromised, the others remain safe.

Using strong passwords helps prevent others from stealing sensitive information, such as financial assets or personal data.

2- Enable two-factor authentication for added security.

Two-factor authentication, also known as 2FA, is an additional layer of security used to protect online accounts. It can protect your accounts from being accessed by unauthorized individuals by requiring a second form of authentication.

2FA comes in a number of forms. Some common methods are: a code that can be sent to a smartphone, a physical hardware key, or a challenge question that only the user knows the answer to.

Though 2FA takes many forms, one-time passwords are typically the best choice for most people.

One-time passwords, also known as OTPs, are temporary codes used for authentication purposes. These codes are generated by an authentication server and sent to the user via email, SMS, or a dedicated authentication app. The user then enters the OTP in the appropriate field to confirm their identity.

OTPs are designed to be used only once and are typically valid for a short period. This limits the time window for a hacker to intercept the OTP and gain access to your account.

We recommended enabling 2FA whenever possible, and ensuring OTPs are sent to an account or device that you can maintain total control of.

3- Avoid public WiFi networks, and use a VPN.

Public WiFi networks such as those found in airports, coffee shops, and hotels, are available for anyone to use without a password.

However, because you can’t easily verify how secure these networks are, attackers on the same network can deploy various methods to intercept your internet activity, steal personal information, or even install malware on your device.

The best way to protect yourself when using public WiFi networks is to use a VPN to encrypt your internet connection and protect your privacy. A VPN can provide a valuable layer of protection for your online activities.

It is also a good idea to avoid connecting to unfamiliar or unsecured WiFi networks where possible, and utilize personal cellular data connections when it is available.

4- Be cautious when clicking on links or downloading files from unknown sources.

It is essential to exercise caution on the internet. Bad actors often use popular links or file downloads to gain access to unwitting devices.

For example, someone may send you an email or message from an address that can appear to come from a legitimate source. However, clicking on the link may lead to a fraudulent website that may lure you to input login credentials or financial information.

To protect yourself, always verify the source and legitimacy of a link or download before clicking or installing anything. In addition, it is always recommended to use a trusted anti-malware software to scan for and protect against online threats.

5- Keep your software and apps up to date to avoid security vulnerabilities.

Keeping your software and apps up-to-date helps you avoid security vulnerabilities. Software updates often include patches and fixes for known security exploits, and developers are constantly working to improve their products and fix problems that may arise.

When a security vulnerability is discovered, a developer will resolve the vulnerability and release an update that includes a fix. By keeping your software and apps up-to-date, you are ensuring that you are using the latest and most secure version, which helps to protect you from any potential security threats.

6- Be aware of phishing scams

"Phishing" scams are fraudulent attempts to obtain a sensitive piece of information by disguising it as a trustworthy entity. Phishing scams usually take the form of fake emails, messages, or websites designed to trick users into giving out their login credentials or personal information.

The most important takeaways are to always verify the source of messages, and to only enter login information if you are absolutely sure the URL of a website is correct. It is also valuable to be wary of offers or deals that seem too good to be true.

7- Keep an eye on your web3 accounts and transactions for any unusual activity.

It's essential to monitor your web3 accounts closely to ensure that your assets are safe.

By keeping an eye on them, you can quickly identify any unusual or suspicious activity, such as transactions that you did not authorize or seem out of the ordinary. If you notice any unusual activity, you can take immediate action to investigate and protect your assets.

For example, an account accessed from an unfamiliar location could mean someone has accessed it. By actively monitoring your accounts, you can then quickly reset the password on the compromised account.

8- Take Self Custody of your Digital Assets.

Self-custody means that you are responsible for securing and managing your own digital assets with a crypto wallet, rather than relying on a third party, such as a cryptocurrency exchange.

Exchanges are generally not a recommended place to hold digital assets long term, due to the variety of events that could put the assets within at risk.

If an exchange becomes insolvent or experiences financial difficulties, you may not be able to access your assets or may lose them entirely.

Additionally, cryptocurrency exchanges are attractive targets for hackers. There have been several high-profile cases of exchange hacks resulting in the loss of customers' digital assets.

When you store your digital assets in a wallet that you own, you have full control over them. You can make transactions and manage your assets as you see fit, without having to rely on the procedures and policies of a third party.

Self custody does come with its own set of risks, such as losing the keys to your wallet, or signing a transaction on a malicious website. You can take a responsible approach to self custody by safeguarding your private key, and thoroughly evaluating websites and smart contracts before interacting with them. You can read more about cryptocurrency wallets and how to keep them safe in our “What is a crypto wallet?” article here.

Conclusion:

While web3 technologies are inherently more secure than traditional web applications, it is still vital to practice good security to safeguard the assets within your web3 accounts.

Users can strengthen their security and reduce their risk of losing their assets by implementing these practices into their web3 activities.

Want to learn more about web3? Click here to check out our other articles!