🛡️Security Fundamentals

Protecting your assets in crypto trading goes beyond just wallet security. Here are some essential practices to stay secure when trading, interacting with new tokens, and navigating the crypto space:

Trading Safely on CEXes and DEXes

• Use Trusted Exchanges: Stick to well-known, reputable exchanges like Binance or Coinbase. For DEX trading, only use established platforms like Uniswap or Raydium.

• Be Cautious with New Tokens: Many new tokens can be scams, so verify contract details and check for red flags like unverified contracts, unlocked liquidity, or anonymous developers.

• Set Realistic Slippage: When trading on DEXes, set your slippage limit carefully. High slippage can make you vulnerable to sandwich bots or unexpected costs.

Avoiding Common Scams

• Phishing Scams: Be aware of fake websites, emails, or messages that look like they’re from official platforms. Always verify URLs, and never click on unknown links.

• Rug Pulls: A rug pull happens when developers abandon a token project or pull liquidity, making it unsellable. Check if liquidity is locked and the contract is renounced to reduce risk.

• Honeypots: Avoid tokens that let you buy but prevent you from selling. Look for reviews, scan contract details on Etherscan, or use tools like honeypot checkers.

Protecting Your Personal Information

• Avoid Sharing Sensitive Data: Never share your private key, recovery phrase, or wallet passwords with anyone. Legitimate platforms will never ask for these.

• Two-Factor Authentication (2FA): Enable 2FA on your accounts to add an extra layer of protection, especially on centralized exchanges.

• Use Unique Passwords: Use strong, unique passwords for each crypto platform. Consider using a password manager for extra security.

Smart Contract and Token Safety

• Verify Contracts: Only interact with tokens that have verified contracts. Unverified contracts can hide malicious functions.

• Check Token Ownership and Renouncement: Verify if a contract has been renounced, which limits the deployer’s control and reduces the risk of sudden changes or rug-pulling.

• Review Liquidity Status: Confirm if the token’s liquidity is locked through a reliable service, and for how long. This prevents the developer from removing liquidity unexpectedly.

Using Security Tools and Resources

• Token Scanners: Use tools like Etherscan, DEXTools, and token safety scanners to review contract details and identify risky projects.

• Security Audits: Look for tokens and platforms that have been audited by reputable security firms, which helps verify the safety of the code.

• Stay Updated on Security News: Follow crypto security updates and news to stay aware of the latest scams, common vulnerabilities, and safety practices.

Practicing Caution with New Projects and Influencers

• Beware of “Too Good to Be True” Promises: Avoid projects that promise unrealistic returns or guaranteed profits, as these are often scams.

• Be Cautious with Social Media Hype: While influencers can be helpful, many are paid to promote tokens. Do your own research (DYOR) rather than relying solely on recommendations.

• Avoid Insider Tips and Private Deals: Scams often involve “insider” tips on new tokens or secret presales. Stick to transparent, publicly available opportunities.