Why Crypto Security Matters

Cryptocurrency gives you the power to control your own money – but with that power comes the responsibility to protect it.

In the crypto world, you are your own bank, which means there’s no fraud hotline or password reset if something goes wrong.

This is why security is so critical.

Unfortunately, there have been cases of hacks and scams resulting in billions of dollars stolen from crypto users and exchanges over the years.

The good news is that by following best practices, you can greatly reduce the risks and confidently enjoy the benefits of crypto.

As a beginner, it’s normal to feel a bit anxious about keeping your coins safe. The key is to be proactive and informed. Most security breaches are preventable with some basic precautions.

Below, we’ll go through the most important crypto safety tips in plain language.

Think of this as your crypto security checklist.

Even if some tips seem like common sense, they’re worth emphasizing – many incidents happen simply because a user overlooked a simple security step.

Let’s make sure that doesn’t happen to you.

Secure Your Accounts with Strong Passwords and 2FA

Your journey likely started by creating accounts on exchanges or wallet apps. These accounts (and your devices) are gateways to your crypto, so securing them is step one.

• Use strong, unique passwords: Use a password for your crypto accounts that you’ve never used anywhere else. It should be long (at least 12-16 characters), with a mix of letters (upper and lower case), numbers, and symbols. Avoid anything guessable (no birthdays, names or common words). If this sounds hard to remember, consider using a password manager (like Bitwarden) which can generate and store complex passwords. This way, you only have to remember one master password for the manager, and it keeps the rest safe and readily available when needed.
• Enable two-factor authentication (2FA): 2FA adds a second step to logins – typically a temporary code from an app like Google Authenticator or a text message – which means even if someone somehow got your password, they still can’t get in without that code. Always enable 2FA on your exchange accounts, and even on your email associated with crypto accounts. For maximum security, use an authenticator app or a hardware security key (SMS texts can be less secure due to SIM-swap attacks). Many platforms allow app-based 2FA, so opt for that if possible.
• Secure your email: Often, your email is a recovery method for other accounts. If a hacker controls your email, they might reset passwords on exchanges. So secure your email with a strong password and 2FA as well. Never use the same password for email and your crypto account – that’s a recipe for trouble if one gets hacked.
• Beware of phishing emails for logins: Sometimes you might get an official-looking email asking you to log in to your exchange or wallet, but it’s fake. To avoid this, never click login links from emails. Instead, go manually to the site or use your app. And double-check sender addresses of any emails. If something seems off (weird spelling, urgent panic-inducing language), be cautious.

By fortifying your logins with strong passwords and 2FA, you’re making it extremely hard for hackers to break in by guessing or stealing credentials alone. It’s like having a deadbolt in addition to a key on your door. Most hackers will move on to easier targets.

Keep Your Private Keys and Recovery Phrase Offline and Secret

We talked about this in detail in the earlier article, but it bears repeating as a top safety tip: the security of your crypto ultimately comes down to protecting your private keys or seed phrase.

• Write down your recovery phrase and store it safely: The moment you set up a non-custodial wallet (where you control the keys), you should have written down the 12- or 24-word recovery phrase on paper. If you haven’t, do it now! Store that paper in a secure place where it won’t get lost or damaged. Some people even split the phrase into two parts and store in two locations (so no single location has the full key). The main idea is to have at least one backup that’s offline and inaccessible to hackers.
• Never share your keys or seed phrase: No support person, no “recovery service,” not even the wallet company itself needs your private keys. If someone asks for them, it’s a scam. Even if they say they’re helping you with a problem, don’t do it. The only time you should ever type your recovery phrase is if you are deliberately restoring your wallet yourself on a new device – and that should be done only in the wallet app, never on a random form or website.
• Use hardware wallets for large amounts: For enhanced safety, especially if you accumulate more crypto, consider moving funds to a hardware wallet (cold storage). A hardware wallet ensures your private keys never touch an internet-connected device. This protects you from a wide range of potential hacks (like malware that might be on your computer). Even if you don’t start with one, it’s a good long-term safety measure once you’re comfortable.

By keeping your keys offline and private, you eliminate the easiest ways for thieves to steal your crypto. The goal is that the only person with access to those keys is you, and that you have them recorded in a way that is resilient against accidents.

Use a Secure Wallet and Don’t Keep All Funds on Exchanges

Where you store your crypto after buying it plays a big role in security. Earlier we discussed transferring coins off exchanges into your own wallet.

Here’s why and how to manage that:

• Limit what you leave on exchanges: Exchanges are convenient for trading, but they are targets for hackers because they hold a lot of users’ funds in one place. While top exchanges do have strong security, there’s still that element of risk. A good practice is to not use an exchange as your long-term storage. Once you’ve bought coins, withdraw them to your personal wallet (the one only you control) if you don’t plan to trade them soon. This way, even if the exchange got compromised, your coins won’t be there to be stolen.
• Choose reputable wallets: Use a wallet that is well-known and maintained. Be cautious about new or obscure wallet apps that haven’t been vetted. Stick to official app stores and verify the app developer’s name.
• Keep wallet software updated: Whether it’s a mobile app or hardware wallet firmware, install updates when they’re available. Updates often patch security vulnerabilities. Set your phone to auto-update apps or at least periodically check for updates in the app store for your wallet.
• Enable security features in wallets: Many wallets offer options like setting a PIN, password or biometric lock to open the app. Some allow 2FA for certain actions or have address whitelisting (to only allow withdrawals to pre-approved addresses). Explore your wallet’s settings and toggle on any additional protections.
• Diversify storage: If you end up holding a large portfolio, you might spread coins across multiple wallets or storage methods. This way, there’s no single point of failure. It’s like not keeping all your cash in one wallet; maybe some in the bank, some in a safe, etc. In crypto terms, maybe some in a hardware wallet, some in a mobile wallet for quick access, etc. It’s an extra step, but it can mitigate risk.

Using a secure wallet that you control gives you an edge – hackers would need to target you individually (which is far less likely than them targeting a big exchange).

Be Vigilant Against Phishing and Scams

The human element is often the weakest link in security. Scammers know this, so they often try to trick you into giving them access rather than trying to hack through technical means. Common crypto scams to watch for include phishing websites, fake support claims, giveaways and investment scams.

Remember, you are in control. Most scams require you to perform an action (like giving away info or sending funds). By being informed and cautious, you can avoid falling for them. When in doubt, take a pause and consult someone knowledgeable or refer to official community forums of the crypto service before proceeding.

Maintain Privacy and Be Discreet

While not directly a “technical” security step, your personal privacy plays a role in your crypto safety:

• Don’t publicize your holdings: It can be exciting to share that you bought crypto, but be mindful of who knows how much you have. In public forums or social media, it’s wise not to reveal large crypto holdings or brag about big gains. Treat your crypto like you would treat cash – you wouldn’t announce to strangers that you have $50k under your mattress. So, celebrate your crypto wins privately and stay humble in public.
• Keep your software updated: We mentioned updating wallets and antivirus, but also keep your operating systems (Windows, macOS, iOS, Android) updated. It’s part of good digital hygiene.
• Double-check transactions (every time): Before you send any crypto, double-check the address you’re sending to. Is it exactly correct? Crypto addresses are long; some malware can spoof an address when you paste (swapping it to the attacker’s address). To counter this, when you paste an address, always compare the first and last several characters to the intended address. Many wallets do this automatically by showing you a shortened version – make sure it matches. A few extra seconds can prevent sending funds to the wrong place irreversibly.
• Test with small amounts: If you are ever moving a large amount of crypto, consider doing a small test transaction first. For instance, send $10 worth, confirm it arrives, then send the rest. This ensures you’ve got the address right and everything works, especially if it’s your first time using a new wallet or exchange withdrawal.

As a DB Cherry user, know that the platform is built to be secure and user-first.

If you ever face an issue or are unsure about something security-wise, reach out through DB Cherry’s official support channels. We pride ourselves on being accessible and trustworthy – no question is too basic when it comes to keeping you safe.

We’d rather you ask and be sure, than guess and possibly slip up.

By following these safety tips, you’ll significantly increase your security in the crypto space. It might seem like a lot to take in at first, but these practices will soon become second nature.

Think of it this way: after you lock your home’s doors and set the alarm, you don’t constantly worry about burglars – you know you’ve done what you can.

Similarly, after securing your crypto setup with these measures, you can relax and enjoy exploring crypto with confidence.

Crypto offers tremendous freedom and financial control. By staying security-conscious, you ensure that you, and only you, reap the benefits of that freedom.

Stay safe and happy holding!