10 Key Steps to Protect Asset Security

In today's cryptocurrency world, ensuring asset security is crucial. This article will introduce 10 simple yet effective methods to help you strengthen your defenses against phishing and other fraudulent activities, safeguarding your encrypted assets.

1. Establish a Multisignature Vault

For long-term holding of encryption currencies, creating a multi-signature wallet is a wise choice. This type of wallet is often referred to as a "vault" and requires multiple private keys to authorize transactions, providing a higher level of asset security for your holdings. Even if one of the private keys is compromised, your assets will still be protected.

It is recommended to start with a 2-of-3 multi-signature strategy and consider using a hardware wallet as a partial signing device to further enhance security.

2. Establish a risk wallet for daily use

Create a dedicated risk wallet for daily activities such as participating in airdrops or minting NFTs. This wallet should only hold a small amount of necessary funds, rather than all on-chain assets.

You might consider using permission delegation services to delegate certain permissions of the vault wallet to the risk wallet, without directly moving or jeopardizing the core assets. This way, even if the risk wallet inadvertently signs a malicious transaction, your long-term savings will not be affected.

3. Use the Transaction Preview Tool

Download and use trading preview tools to help you visually understand the content of a trade before approving any transaction. These tools are typically free browser extensions that pop up windows explaining all proposed trades. They serve as a strong barrier against phishing attacks, and it is recommended to use such tools for all transactions.

4. Regular Audit of Token Spending Permissions

Many Ethereum-based applications require users to approve "unlimited" token spending permissions. While this reduces the number of repeated approvals, if the wallet is stolen, attackers may exploit these approvals to steal a large amount of assets.

Regularly checking and revoking or minimizing unnecessary unlimited approvals is a good habit. There are dedicated platforms that can help you easily modify token quotas.

5. In-depth Study of Project Background

Before using any new cryptocurrency project, it is essential to conduct thorough research. Review the project's documentation, FAQs, white papers, and other materials to understand its details and potential risks.

If a project lacks comprehensive documentation or related educational resources, this itself may be a warning sign. Do not blindly follow the actions of others; make decisions based on your own research.

6. Continuous Monitoring of Asset Status

Use portfolio tracking tools to monitor your encryption currency positions in real time. These tools can provide you with an overview of the assets you hold across various wallets and platforms, making it easier for you to detect unusual activity in a timely manner.

Regular monitoring not only helps to observe returns but is also an important part of risk management. Timely detection of suspicious activities gives you the opportunity to take action to protect the remaining assets.

7. Stay updated on industry trends

Stay updated on news in the cryptocurrency industry, especially the latest security incidents and hacking attacks. This information may directly or indirectly affect your asset security.

Follow reliable news sources and social media accounts, as they often provide detailed analysis and advice shortly after events occur. This can help you quickly understand the situation and take necessary protective measures.

8. Strengthening Personal Information Security

Even outside of the Web3 environment, it's important to pay attention to protecting your personal information security. Attackers may engage in fraudulent activities by hacking into your email or social accounts.

Strengthen your operational security foundation, including:

• Use a secure email service provider
• Use unique strong passwords for different accounts
• Avoid linking your phone number with encryption platforms
• Use two-factor authentication (2FA) to protect your account, but avoid using SMS-based 2FA.
• Ask the mobile operator to lock your SIM card
• Use the latest antivirus software

9. Develop Emergency Strategies

Even with all the above precautions taken, be prepared for the worst-case scenario. Consider using professional Web3 security services that can help you create custom backup wallets and emergency button systems.

When you feel a security threat, you can quickly transfer the remaining assets to a preset secure wallet. For more advanced users, there are also services that can detect and avoid on-chain attacks at the millisecond level.

10. Actively report suspicious activities

If you encounter phishing or other suspicious activities, please issue a warning immediately. You can post on social media, share information in relevant groups, or report to specialized databases.

Doing this not only helps others avoid falling into the same traps, but also contributes to the overall encryption community's asset security. Remember, everyone has a responsibility to maintain the security of this ecosystem.

By following these steps, you can significantly enhance your encryption asset security, allowing you to explore and invest in this field, which is full of opportunities but also risks, with greater peace of mind. Stay alert, keep learning, and together we can create a safer cryptocurrency environment.