Ensuring your crypto exchange accounts and funds are safe can prevent potential losses and headaches. Scams are everywhere in crypto, which is why learning about security and safety is one of the most important aspects of investing in cryptocurrency.
Here are some key strategies to help keep your digital assets secure.
1. Set Unique and Complex Passwords
Setting a strong, unique password is crucial for securing your crypto exchange accounts. It’s a simple but essential step, and the first line of defense against unauthorized access.
- Use a combination of uppercase and lowercase letters, numbers, and symbols.
- Avoid using easily guessable information like birthdays or common words.
- Never reuse passwords across multiple services to reduce the risk of a security breach affecting multiple accounts.
To manage these complex passwords, consider using a reputable offline password manager. These tools store your passwords securely, encrypted with a master password. Make sure to back up your passwords, but keep these backups encrypted and offline. This ensures that even if your device is compromised, your passwords remain safe.
Avoid typing your passwords on public devices or computers. These can be equipped with keyloggers or malware designed to capture everything you type. Public Wi-Fi networks are also risky; they can be exploited by hackers to intercept your data.
Sharing your password with anyone, including exchange support staff, is a very bad idea. Legitimate support will never ask for your account credentials. If someone does, it’s a red flag. Additionally, secure the device you use to access exchanges. Use idle time-out with a password on your computer or face lock/PIN on your phone.
By following these steps, you ensure your passwords are robust and your crypto assets remain secure. Always prioritize the safety of your login information.
2. Enable Two-Factor Authentication
Two-factor authentication (2FA) is essential for protecting your crypto exchange accounts. It’s a simple but powerful security measure that adds an extra layer of protection. Basic 2FA involves using your email address, where every login attempt must be confirmed by a code sent to your email. However, if your email account is compromised, this protection becomes useless.
For stronger security, use an app like Google Authenticator or a hardware device like YubiKey for 2FA. Ideally, use two different devices for logging into your exchange and for 2FA. For instance, log in on your desktop and use your phone for the 2FA code. This way, both devices would need to be compromised for your account to be accessed.
Got an old phone lying around? Use it for 2FA backups, or as a secondary device. This adds another layer of security, as your primary device and backup device would both need to be compromised. Make sure to back up your 2FA codes securely, so you don’t get locked out if you lose access to your primary device.
By implementing 2FA, you significantly enhance the security of your crypto exchange accounts. It’s a straightforward step that makes a big difference in protecting your digital assets.
3. Protect Your Personal and Facial Information
Never submit personal documents to suspicious websites or exchanges. Always avoid submitting KYC information for ICOs and airdrops. These could be honeypots designed to gather personal information. Even if they’re legitimate, their security measures might not be as robust as those of reputable platforms.
Your KYC documents can be used for nefarious purposes, such as opening bank accounts or crypto exchange accounts in your name. Hackers can use this information for scams, identity theft, or money laundering. Keep your documents safe and only submit them to trustworthy platforms.
Before submitting any personal information, research the platform thoroughly. Check reviews and security measures they have in place. Avoid platforms that lack transparency or have poor security track records. By being cautious, you can protect your personal information from falling into the wrong hands.
4. Avoid Phishing Attempts
Phishing attempts are the most common threat in the crypto world. Always verify that communication comes from official emails and domains. Be wary of emails that seem too good to be true. Scammers can easily spoof email sender information, making it look like it’s from a legitimate source.
Many exchanges allow you to set up anti-phishing codes. This is a simple code included in all official communication emails from the exchange. If an email doesn’t have this code or it doesn’t match, it’s likely a phishing attempt. In such cases, don’t click on any links or provide any personal information.
Never send your personal details or documents through email unless you’re absolutely sure it comes from the exchange’s support. When in doubt, contact the exchange directly through their official website. By staying vigilant, you can avoid falling victim to phishing scams.
Just as we were writing this article, we received the email above, coming from one of the most popular coin price tracker websites. While passwords were not compromised during the breach, other data can easily lead to more sophisticated phishing attacks. Using real name, email address and location in a phishing email makes it more likely victims will fall for the scam.
Chances are this breach will lead to dozens of emails over the next few years to all 1.9 million contacts exposed during the data breach. This is neither the first nor last time a website’s security gets compromised, which is why you must use unique passwords, ideally dedicated emails for exchanges (or email aliases for specific services), and always stay vigilant for phishing attempts.
5. Use Email Aliases
If you are using Gmail, use the alias feature for extra safety. If your email is example@gmail.com, any email sent to example+anytext@gmail.com will be forwarded to your main address. Use +aliases when creating accounts on various services to easily spot where emails are coming from.
For example, if you register for various crypto airdrops, always use youremail+airdrop@gmail.com, or a similar alias. When (not if) you start getting spam and phishing emails, you know where they are coming from, and can easily block the alias from receiving messages. It can be an easy way to notice phishing emails.
Most email services support some kind of alias feature, including Gmail and Yahoo. You should refer to your email client to see if they support the feature.
6. Use Other Exchange Security Features
Exchanges offer various security features beyond basic login protection. These features can add extra layers of security to your account.
Withdrawal Whitelist
Use a withdrawal address whitelist to ensure non-whitelisted addresses need additional verification before funds can be withdrawn. Always double-check addresses and go through 2FA for security.
For instance, you can whitelist your MetaMask address to allow for quicker transfers without additional verification requirements. Ideally, you always want to go through proper 2FA verification for every withdrawal.
Trading Passwords
Larger exchanges, including KuCoin, Binance, Bybit and others, often require a special trading PIN for making trades (if enabled). This adds another security layer, ensuring unauthorized users can’t make transactions even if they access your account. On Gate, this is called “Fund password”, and you can even set up frequency, and choose whether to type it for every trade attempt or once an hour.
Even if someone were to log into your exchange account, they will not be able to execute trades without the trading PIN number or password. This can be helpful in case you leave your computer or phone unattended, ensuring anyone with access to the device won’t be able to sell your spot bags. Because you just know they would sell right before a big pump.
New Address Withdrawal Lock
Bybit, for example, has a feature that restricts any newly added withdrawal address from being used for a 24-hour period, providing additional security against unauthorized withdrawals.
In case you never need immediate fund withdrawals, activating withdrawal locks for new addresses can be a very good security measure. If you keep a watchful eye on your email communication, you will have ample time to notice an unauthorized withdrawal attempt.
Withdrawal PIN or Password
Many exchanges offer an additional withdrawal PIN or password, adding another layer of security to prevent unauthorized withdrawals. This is separate from trading PINs or login passwords.
Withdraw Limit
Some crypto exchanges also let you set up withdrawal limits in USD amounts. For example, if you hold $10,000 on an exchange, you can set the daily withdrawal limit to $1,000. This ensures only a small portion of your funds will be be withdrawn in case your security is breached.
Most exchanges have a number of, or even all of these safety and security features. You should consider activating them, depending on your use case. For an exchange used for long-term spot bags where you won’t be withdrawing on a daily basis, it’s a good idea to activate as many of these security features as you can.
If you trade on your phone and tend to leave it unattended, having a trading PIN is a smart call. Also consider what happens if you lose your phone: you must have adequate protection to ensure nobody can log into your exchange and email accounts.
Understand that once your funds get withdrawn from an exchange, it’s game over. Do not expect to ever see your money again. It’s imperative to use proper security settings to make it difficult or impossible for bad actors to withdraw funds without your knowledge.
7. Log Out When Done Transacting
Logging out of your exchange accounts after completing transactions is a simple but effective security measure. Even if someone gains physical access to your device, logging out ensures they can’t access your exchange account without logging in again.
This is especially important if you use an untrusted device to access your crypto exchange, like a public computer or a friend’s PC. Public computers are often compromised with keylogging software that can capture your login details. Work computers can also be risky, as employers may monitor all your keystrokes and activities without informing you.
By logging out after each session, you minimize the risk of unauthorized access. It’s a small step that significantly enhances your account security.
8. Use Clean Browsers
Keeping your browser clean is crucial for safe crypto transactions. Avoid using third-party extensions or plugins, as they can contain malware that steals your information. Instead, use a separate browser for crypto exchanges or financial services. Popular browsers like Chrome, Firefox, and Opera can be installed on all devices and operating systems.
For extra privacy while also supporting the crypto community, consider using Brave browser. It’s a crypto-friendly, Chromium-based browser with integrated web3 wallet, adblock, and privacy tools.
Any browser extension – even one installed from official Google Play or Apple’s app store, can potentially contain malware and be used to steal your browser cookies and information, allowing logins to your exchange accounts. Be cautious of unknown crypto wallets and avoid installing extensions or apps unless you need and trust them. By using a clean browser, you ensure a safer environment for your crypto activities.
9. Monitor Your Emails for Suspicious Login Attempts
Set up filters and push alerts in your email client for exchange-related emails. This way, you’re immediately notified of any login attempts to your exchange accounts. If you notice any suspicious activity, most exchanges allow you to temporarily deactivate your account or freeze trading and withdrawals.
By monitoring your emails, you can quickly respond to potential threats. This proactive approach helps you stay ahead of any unauthorized access attempts, keeping your accounts secure.
10. Move Funds to Hardware Wallets
Storing funds on hardware and decentralized wallets are one of the safest ways to protect your crypto assets. However, you must know how to properly secure these wallets. Writing down your keyphrase on a piece of paper and leaving it in your desk drawer is not secure. At the very least, write it on an encrypted USB thumb drive. Always make sure you can access your wallet in case of device loss or theft. Invest in a fire-proof metal crypto wallet or a safe.
Because you wouldn’t carry your entire life savings in a wallet everywhere you go, you shouldn’t put all your crypto eggs in one basked either. Consider a combination of cold storage wallets, hot wallets, and exchanges. For example, keep half of your portfolio on a hardware wallet and spread the rest across hot wallets and several safest crypto exchanges. This diversification reduces the risk of losing all your funds if one storage method is compromised.
11. Use Different Exchanges
Using multiple exchanges spreads your risk. There’s no cost to holding funds on different platforms. For instance, use your PC for spot portfolio access, and another exchange for day trading on your mobile phone. This way, even if one account gets compromised, the rest of your funds remain safe.
You can look at our list of exchanges with highest safety, or those that are highly regulated. Alternatively, sort our exchange list by volume, as top 5 volume exchanges are already trusted by the crypto community. If you don’t want to bother researching, consider Binance, Bybit, OKX, Kraken, Coinbase, or Gemini as your safest holding options.
This is not an exhaustive list by any means, but these safest exchanges should be sufficient to diversify your funds, and give you peace of mind that your funds are secure. It takes a minute to register on a new exchange, 5 minutes to do KYC, and just a few bucks to transfer some of your assets over.
You can convert assets to USDT, and withdraw it to another exchange for a small withdraw and transaction fee. USDT transaction fees are typically between $1 and $5 in total (use TRC-20 network, not ERC-20). Then, rebuy your altcoins on the new exchange. This low-cost strategy diversifies your assets across multiple platforms, mitigating risks in case of security incidents.
12. Always Be Aware of Scams
Crypto is rife with scams. Scammers try to access private information or deceive people into sending their crypto to compromised wallets. Some scams are obvious, but others can be sophisticated and hard to spot even for those experienced with crypto.
Because of countless different scams and phishing going on in crypto, it’s hard to highlight specific examples without making this article even longer than it is. Instead, we’ll offer some general advice:
- If something sounds too good to be true, it’s probably a scam.
- Be wary of emails claiming you’ve received an airdrop or a large amount of crypto.
- Never trust emails from unknown sources asking for money or personal information.
- “Hacker” trying to get a BTC ransom not to release your nude pics is a scammer too.
Common sense is your best defense against scams. Most crypto scams are just phishing attempts, so educating yourself on different ways YOU can compromise your own money is smart for ensuring you know how to avoid getting scammed or phished. Visit Bybit’s learning section for a list of top crypto scams, or the crypto scams subreddit for more examples of frequent scam attempts, and ask for community advice if you’re in doubt. That being said, don’t blindly trust anyone on Reddit either.
13. Never Install Mining Software
Crypto mining at home is no longer profitable. Any browser extension, software or app claiming to mine crypto on your device is likely malicious. At best, it steals your data and sells it to advertisers; at worst, it steals all your data.
Even few semi-legitimate mining apps pay out fractions of a cent and require you to watch endless ads. Even if you’re miraculously not getting scammed or installing spyware, we promise it’s never worth your time or effort.
Instead, if you truly want to get extra cryptocurrency, consider learning how to trade, or stake your spot bags for a little bit of passive income. These methods are more secure and potentially more profitable.
14. Other Safety Tips & Advice
Aside from the above, here’s a few other bits of advice that you should adhere to:
- Don’t trust anyone blindly.
- Be especially wary of anyone’s “advice” in Reddit PMs or Telegram and Discord messages promising high returns, advertising the “next big thing”, promising to retrieve lost funds from your wallets, or advertising any other scam they cooked up.
- Whatever 1000x crypto gem altcoin your favorite influencer is peddling this week, we guarantee they are being paid to promote it.
- If someone asks you to send money, they are probably scamming you, and will later ask for even more for “fees” or whatever other reason.
- Use a password or biometric authentication on your mobile phone, and activate encryption.
Always keep learning, always assume others are out to get your money (whether through scams or bad investments), and use common sense.
Conclusion
Keeping your crypto exchange accounts and funds secure requires constant vigilance and proactive measures. Crypto lets us transact more freely, but you must understand that you are responsible for your funds’ safety. Decentralization and privacy come with downsides. If you get scammed, you will likely never recover your money. Don’t expect exchanges to reimburse you for losses due to scams.
The biggest and most secure crypto exchanges offer many tools to prevent unauthorized access and protect customer funds. However, it’s ultimately up to customers to learn about the risks and take necessary precautions to secure their accounts.
By following the tips and advice in this guide, you can greatly reduce the risk of unauthorized access and keep your assets safe. Always stay aware of potential threats and take steps to protect your accounts and personal information.
