Staying safe online is crucial as lots of frauds, malicious scripts, and scams are lurking on the web to trick you. Don’t slip into pitfalls on web3, and follow our guide with useful safety tricks. Let’s kick this off with crypto wallets.
A crypto wallet is a program that enables you to manage your cryptocurrency and NFTs. It serves as your unique address on the blockchain, allowing you to send and receive items while securely storing them. There are various types of wallets available, including custodial and non-custodial, hardware and software, and those designed for specific blockchain networks.
Non-custodial wallets typically provide a seed phrase, also known as a backup phrase, secret recovery phrase, or mnemonic sentence. This seed phrase consists of a specific order of words that serves as your access key. It is crucial to keep your seed phrase safe and confidential. You can store it securely by writing it down on paper and keeping it in a safe location or using multiple secure locations. Remember never to share your seed phrase with anyone, whether verbally, visually, digitally, or in any other form, as it grants access to your wallet and its contents.
To emphasize, your seed phrase is the only requirement for recovering your wallet or creating a hard copy backup. For day-to-day use, you will choose a password for your wallet. If someone asks for your seed phrase in any other situation, it is safest not to provide it to avoid the risk of being hacked.
How to spot the NFT scam?
NFT scams can take on various forms and deceive individuals in different ways. They may involve misleading you into purchasing misrepresented items or gaining unauthorized access to your wallets. Retrieving your money after falling victim to an NFT scam is challenging due to the irreversible nature of blockchain transactions. Therefore, the key to safeguarding yourself is to develop the ability to recognize such scams. Just like any other purchase, it is essential for consumers to exercise their own judgment and thoroughly evaluate and vet NFT projects.
NFT sellers’ safety tips
Phishing scams extend beyond email and can also occur through messages or direct messages (DMs) on social media platforms, both privately and publicly. Scammers have increasingly used social media DMs, often posing as interested buyers, to initiate phishing attempts. Their goal is to obtain sensitive information, solicit ETH transfers, or redirect users to malicious email addresses. To avoid falling victim to such phishing scams, follow these steps:
NFT Buyers’ Tips
Beware of unsolicited airdrops and unlockable content to protect yourself from phishing scams. If you receive an NFT for free from an unfamiliar creator in your wallet, exercise caution. Some scammers use airdrops to promote fake projects, luring victims into clicking links that lead to websites designed to steal their cryptocurrency. Avoid opening any content or clicking on links sent through airdropped NFTs from unknown addresses to safeguard your security.
When evaluating an NFT's authenticity, be aware that counterfeiters may steal images of NFTs to create counterfeit collections. However, while the art itself can be copied, the original NFT's contract address remains unique. The provenance of an NFT is permanently recorded on the blockchain, making it crucial to confirm the original contract address.
Before making a purchase, examine the collection's details, description, volume, activity history, and official social media accounts. The "Analytics" tab provides more comprehensive data on the collection. Be cautious of scams related to pricing, such as users switching preferred cryptocurrencies during bidding without informing the seller. Also, watch out for collections with multiple NFT transfers to famous collectors from the same address, as it could be an attempt to create a false appearance of legitimacy. High volumes of low-price transactions within a group of users should raise scrutiny. Moreover, be wary of collection offers higher than the floor price, which may indicate suspicious activity.
To protect your wallet information, be cautious of free NFT giveaways announced on social media that require sharing wallet credentials. Avoid clicking links or sharing wallet addresses via direct messages from unknown individuals. Additionally, avoid reusing passwords and consider using a hardware wallet for long-term NFT storage. Never share your wallet's seed phrase with anyone.
Exercise caution when sharing information. Scammers may use links in emails, social media platforms, or user-generated content to redirect users to websites requesting wallet connection or seed phrase. Urgent or time-sensitive tactics are often employed to pressure victims into making hasty decisions. Only navigate to official websites by cross-checking the web address with the project's social media accounts. Avoid providing your seed phrase, especially on unknown websites.
Be vigilant about emails from unknown senders that contain typos, unusual phrasing, or requests for personal information, or seed phrases.
Avoid clicking on links in direct messages or shared through tweets, email blasts, or unknown websites. Scammers can use phishing tactics to trick you into connecting your wallet to malicious websites. Engage only with official links from trusted accounts to ensure your security.
Web3 Security Wrap-Up
Cybersecurity is a dynamic blend of art and science. While web3 and blockchain technology hold immense potential for the future, they are relatively new and evolving. As with any emerging field, the community is continuously developing practices and processes to ensure the safety of everyone involved. When navigating this space, rely on your best judgment and keep in mind the age-old advice: if something seems too good to be true, it probably is.
