Introduction

Hi everyone, I'm Lao Jiu, a veteran who has been through ups and downs in the crypto world for several years. Today I want to discuss a topic that I think is particularly important but often overlooked - cryptocurrency security protection. To be honest, after experiencing a moment where I almost lost all my coins, I've become especially sensitive to this issue. After all, no one wants their hard-earned money to go down the drain, right?

A Painful Lesson

Late one night last year, just as I was about to go to bed after finishing gaming, I suddenly received an alert about unusual wallet login activity. At that moment my mind went blank, and my blood seemed to freeze. My wallet contained half a year's worth of investments - if it was really stolen, I would have been devastated.

Honestly, that feeling was truly agonizing. I remember my hands were shaking as I quickly opened my wallet to check. Fortunately, I had set up two-factor authentication earlier, which prevented the hacker from succeeding. But that unsettling feeling lasted for several days, and I couldn't sleep well at night.

This incident made me fully realize the importance of security protection. I started frantically learning about various security measures, from basic private key protection to advanced hardware wallet usage, and even researched common hacker attack methods. Looking back now, although this experience was frightening, it truly taught me a profound lesson.

Basic Protection

When it comes to cryptocurrency security, we must discuss private key protection - the most basic yet most important aspect. Many newcomers might not understand the importance of private keys, thinking they're just a string of characters. But in reality, a private key is more important than your bank account password, ID card, and fingerprint combined.

Why do I say this? Because in traditional financial systems, even if your bank card password is leaked, you can report it lost, freeze the account, or appeal to the bank. But in the blockchain world, once your private key is leaked, your assets can be transferred away in minutes, and due to decentralization, you don't even have a chance to appeal to anyone.

After years of experience, I now use a "triple insurance" approach. First, I store most assets in a hardware wallet. This is like keeping money in a safe, locked away when not in use. Second, I use a hot wallet (like mobile app wallets) for small amounts needed for trading, like carrying a regular wallet - convenient but shouldn't hold too much. Finally, I back up private keys using special encryption methods, which I'll detail later.

This approach might seem complicated, but it's actually quite practical to use. Most importantly, it really proved its worth in critical moments. Take the recent hacker attack for example - because most assets were in the hardware wallet, even if the hot wallet had been compromised, the loss would have been acceptable.

Wallet Selection

When it comes to choosing wallets, it's truly a headache-inducing problem. There are so many wallet applications out there - I've installed over a dozen on my phone alone. After a year of research and usage, I've summarized several very practical selection criteria.

First is security, which is undoubtedly crucial. A good wallet application should have complete security mechanisms, including but not limited to: password protection, fingerprint recognition, and two-factor authentication. Preferably it should be open-source, so the community can help review the code and identify security vulnerabilities promptly.

Second is usability, which is actually extremely important. Many people might think more complex operations mean better security. But that's not the case - overly complex operations are more likely to lead to mistakes. Like a wallet I used before, where transfers required multiple confirmations, making me anxious every time, worried about making a mistake.

Finally, compatibility is also a must-consider factor. Today's cryptocurrency ecosystem is particularly rich, with several mainstream public chains and countless tokens. If a wallet only supports Bitcoin, that's too limiting. The wallet I use now supports most mainstream coins and updates frequently to quickly support new tokens.

Another point is the frequency of updates and maintenance. This can indirectly reflect whether a wallet is reliable. If a wallet hasn't been updated for months, either it's abandoned or the development team isn't professional enough. It's best to stay away from such wallets.

I currently use a well-known open-source wallet. While its interface isn't the most flashy, it has all the necessary functions and is extremely stable. I've used it for over two years without any issues. However, I won't specify which wallet it is, as everyone's needs are different, and you should choose based on your situation.

Exchange Security

Talking about exchange security, it's truly a love-hate topic. Many friends, especially newcomers to crypto, like to keep their coins on exchanges. While this seems convenient on the surface, it actually carries huge risks.

Remember the FTX exchange collapse in 2022? How many people's assets vanished overnight? It wasn't a small amount - reportedly over 1 million users were affected, with losses amounting to tens of billions of dollars. And that's just one of the more famous recent cases. In fact, since Bitcoin's creation, there have been countless exchange collapses.

So my advice now is that exchanges are really only suitable for trading, not for storage. Think of it as a temporary transit station - transfer coins in when you need to trade, and transfer them out immediately after trading. If you must store some coins on an exchange, choose those that are very large and have many years of operating history, and make sure to enable all security options.

Specifically, exchange accounts should at least enable these security measures: - Two-factor authentication (Google Authenticator or other 2FA tools) - Email verification - Phone verification - Withdrawal whitelist - Trading password

Also, regularly change passwords and don't use the same password across multiple platforms. This might sound troublesome, but for security, none of these steps can be skipped.

Advanced Protection

For friends who have been in crypto for a while and hold a significant amount of assets, I strongly recommend getting a hardware wallet. I know many people think hardware wallets are expensive, costing hundreds or thousands, but compared to potential losses, this investment is really nothing.

I use a relatively well-known brand of hardware wallet. Honestly, I thought it was expensive at first, but after using it, I found it worth the price. First, the security is unquestionable because it's offline storage, so hackers can't attack through the network. Second, it's very simple to operate - just follow the manual step by step without making mistakes. Finally, the build quality is excellent, feeling like it can last for several years.

Regarding hardware wallet usage, here are several particularly important points to note:

First, initial setup must be done in a secure environment. Best to find a room without network access, close doors and windows, and ensure no cameras are pointing at you. Because during setup, the recovery phrase will be displayed, which absolutely cannot be seen by others.

Second, always verify firmware sources. Don't download firmware updates randomly - only download from official channels and verify signatures. This might sound complicated, but officials all provide detailed tutorials.

Finally, pay attention to physical security during use. While hardware wallets protect against hackers, they're vulnerable to physical damage. I've seen someone's hardware wallet get water damage, almost losing access to their coins. So when not in use, best to store it in a moisture-proof box in a safe place.

Daily Usage

In daily use, I've summarized several particularly important habits - these are experiences gained through blood and tears.

The first habit is to carefully verify addresses before each transaction. This is really important - I know several friends who sent coins to wrong addresses by mistake and could never recover them. You might ask, what could go wrong with copy and paste? But in reality, there are now viruses specifically designed to modify copied addresses. These viruses are particularly insidious - they'll quietly change the address to the hacker's address when you copy a wallet address, but it looks very similar to the original address, almost impossible to notice without careful comparison.

So I've developed a habit of comparing the first and last few digits of addresses before each transfer, only clicking confirm when they match completely. Although this takes extra time, it's absolutely worth it.

The second habit is regularly backing up private keys and recovery phrases. But there's a particularly important point - never save them on electronic devices. Don't store them on computers, phones, or cloud drives, as these places can be hacked. My approach is to engrave private keys and recovery phrases on special materials, then split them into several parts stored in different secure locations. Why store them separately? Because this way, if one location has issues, other backups remain.

Let me add that the choice of engraving material is also important. Paper isn't durable and is vulnerable to water and fire. I use a special metal plate that reportedly can last decades without damage. Although the cost is relatively high, considering the assets being protected, this investment is really nothing.

The third habit is never operating wallets in public places or unsafe network environments. For example, public WiFi in cafes or libraries might have been tampered with. Best to use VPN, and choose reliable VPN providers. I once almost had my coins stolen because I used a free VPN. Later I learned many free VPNs are actually tools used by hackers to collect user data.

Emergency Plans

Honestly, even with all these protections, we still need to prepare for the worst scenarios. Just like buying car insurance, we need to prepare an emergency plan for our cryptocurrency.

First is setting up emergency contacts. This person should be someone you really trust and who has some understanding of cryptocurrency. If something happens to you, at least someone knows how to handle your assets.

Second is preparing backup wallets. Besides your main wallet, best to prepare a backup wallet and test in advance whether it works normally. I've seen people have wallet issues and want to transfer assets, only to find they can't log into their backup wallet.

Finally, prepare a detailed operation guide. Write down all important information, including wallet addresses, how to recover wallets, how to transfer assets, etc. But note, don't write private keys and recovery phrases in this guide - these should be stored separately.

New Threats

As technology develops, threats are constantly upgrading. Today's scam methods are increasingly sophisticated and varied. Let me introduce several particularly common new scam methods.

First is fake official airdrops. This scam is very common - scammers pretend to be well-known projects conducting airdrops. They create websites that look very similar to official ones and ask you to connect your wallet to claim the airdrop. But actually, once you connect your wallet, they'll immediately transfer out your assets.

Second is fake gas fee scams. This scam is more subtle - scammers post transactions with seemingly very high returns on gas fees. When you participate in the transaction, you're actually executing a malicious contract, resulting in your assets being transferred away.

Then there are phishing website scams. These scams mimic interfaces of well-known exchanges or wallets and trick you into entering your private key or recovery phrase. Once you enter this information, your assets are in danger.

So we must stay vigilant and frequently follow security updates. I've developed a habit of checking warning information from mainstream security institutions daily to understand the latest scam methods. This way we can identify similar situations promptly when encountered.

Conclusion

Writing to this point, do you also feel the same way? Honestly, after being in crypto for so long, I deeply feel that security protection is truly an endless marathon. It requires our continuous investment of time and energy, and constant learning of new knowledge.

As I said before, in crypto, we're all retail investors, and only by reminding each other can we avoid being taken advantage of. If you have similar experiences or good suggestions, welcome to share in the comments. Maybe your small suggestion could help others avoid losses.

Finally, here's a saying: Better to be over-prepared than under-prepared. In crypto, there's no such thing as a small security issue. Hope everyone can protect their assets well - after all, this is money we worked hard to earn.

That's all for today's sharing. Next time I plan to discuss a recently hot project - see you then! If you found this article helpful, don't forget to like and follow me!