10 Important Steps to Strengthen Encryption Asset Security

In today's complex cryptocurrency environment, protecting your digital asset security is crucial. This article will introduce you to 10 simple yet effective steps to help you enhance your defenses and ensure your encryption assets are secure and worry-free.

1. Establish a Multi-Signature Vault

Creating a multi-signature wallet for long-term held cryptocurrencies is a wise move. Multi-signature wallets require multiple private keys to authorize transactions, greatly enhancing asset security. Even if one of the private keys is compromised, your assets remain safe. It is recommended to start with a 2-of-3 multi-signature strategy and consider using a hardware wallet as one of the signers to further increase the security level.

2. Set Up a Dedicated Risk Wallet

Daily cryptocurrency activities such as airdrop claims or NFT minting should use a separate dedicated wallet, rather than your main vault. This risk wallet only needs to be funded with a small amount as needed. You may also consider using permission delegation services to delegate certain permissions of the vault wallet to the risk wallet without actually moving or jeopardizing the assets.

3. Using the Trading Preview Tool

It is very important to download and use trading preview tools. These tools are browser extensions that pop up to explain the transaction details before you approve any transaction. They serve as a strong barrier against phishing, so be sure to use them before every transaction.

4. Regular Review of Token Expenditure Permissions

Many Ethereum-based applications require users to approve "unlimited" token spending permissions. While this can save on gas fees, if the wallet is compromised, attackers may abuse these permissions. Therefore, it is essential to regularly check and appropriately revoke or limit these approvals. There are dedicated platforms that can help you easily manage token spending permissions.

5. In-depth Research on the Project

Before participating in any encryption project, it is essential to conduct thorough research. Carefully read project documentation, FAQs, white papers, and other materials to understand the details and potential risks. If a project lacks good documentation and educational resources, that itself is a warning sign.

6. Continuous Monitoring of Asset Positions

It is very important to regularly monitor your encryption positions using a portfolio tracker. These tools provide real-time overviews of assets across various wallets and platforms, helping to promptly detect unusual activities, allowing you to take measures to protect the remaining assets.

7. Stay Updated on Industry Trends

Stay updated on cryptocurrency news, especially recent security events. Sometimes, an attack on a specific DeFi protocol can directly or indirectly affect your assets. Keep an eye on reliable news sources and analysis to take timely action before potential impacts occur.

8. Strengthen Web2 Personal Information Security

Even outside of the Web3 environment, it is important to pay attention to protecting personal information security. Implement strong operational security measures, such as using secure email providers, setting strong passwords, avoiding linking phone numbers with encryption platforms, and using two-factor authentication. These measures can effectively prevent attackers from scamming through your Web2 accounts.

9. Develop Emergency Strategies

Despite taking all the above precautions, it is still important to be prepared for the worst-case scenario. Consider using a security service provider, setting up custom backup wallets, and an emergency button system. This way, in the event of a threat, you can quickly transfer your assets to a secure backup wallet.

10. Actively report suspicious activities

If you encounter phishing or other suspicious activities, please report it immediately. Whether posting on social media or submitting a report to a dedicated database, your actions may help others avoid falling into traps. Taking a few seconds to report suspicious activities can contribute to the safety of the entire community.

By taking these steps, you can significantly enhance the security of your encryption assets, allowing you to explore and invest in the world of digital currencies with greater confidence and composure. Remember, security is always the top priority, and maintaining a vigilant and learning attitude is crucial.