In this article, we will summarize the SafePal x Binance Security Event to educate new crypto users about security. The event called “Security First in DeFi: How to keep crypto safe as a crypto beginner” occurred on June 24, 2021. In this event CEO of SafePal Veronica Wong discusses with Batuhan Dasgin from Binance about crypto asset security especially ways on how new users can be protected.
Watch the Full Event HERE
The most frequent issue encountered by SafePal Wallet users has been not backing up the mnemonic phrase also known as the seed phrase. Users asking for retrieval or recovery of their mnemonic phrase.
The second common issue encountered by SafePal Wallet users is the use of advanced security features like the passphrase but ultimately users forget what their passphrases were thus resulting in their inability to recovery their wallet.
The pass-phrase is an advanced security feature that allows a user to create hidden wallets to protect against 5 dollar range attacks.
“If someone is asking you for your seed phrase, you can just hand it over to them because you have a passphrase enabled wallet, it can create a hidden wallet under the same seed phrase meaning that even if I give you my seed phrase knowing that I have a passphrase behind it. I know that I still have my assets hidden in the newly created wallet and this wallet can not be recovered without passphrase” CEO Veronica Wong
The third most commonly encountered issue is that users write their mnemonic phrase down on a piece of paper however the piece of paper becomes lost, damaged or misplaced leading to their inability to retrieve their wallet account.
Finally given the explosive growth of DeFi, a new issue has arisen regarding DeFi DApp Authorization. Many DeFi DApps requests authorization to move funds and gain access to transaction details so that you can participate in the DApp. When you authorize the DApp approval & DApp request there is an authorization limit which is generally set to no limit which will allow a malicious DApp to transfer away all your assets.
Major Elements of Crypto Security
Was your private key securely created?
When generating a set of mnemonic phrases also known as the seed phrase, it is important to ensure that it comes from an environment that has not been compromised. Such as ensuring that if your using a desktop wallet, that your computer has not been key logged or monitored. Ensure whichever tool that you use to generate your seed phrase is decentralized and not created by malicious hackers or scammers.
“so it’s really important to be aware that whether your private key or your mnemonic phrase is created in a safe manner” CEO Veronica Wong
Is the private key/seed phrase stored safely?
The best way to ensure that your mnemonic phrase is safely protected is via the use of a metallic board as to simply writing it down on a piece of paper. As an important tip, do not copy and paste your seed phrase onto a mobile note as it is prone to be stolen. A metallic board like the SafePal Cyhper is an excellent way to securely store your mnemonic phrase without risk of water, fire, corrosion damage.
Did you put your assets into risks during daily usage?
Choose a safe wallet as we all know the phrase ‘Not your key, not your coin’ therefore the most secure way of storing your crypto assets for daily secure use will definitely be a decentralized solution. Ultimately a product that stores your private key in an offline environment such as a hardware wallet is by far the safest way of holding your crypto assets. The SafePal S1 Hardware Wallet is an excellent decentralized offline solution that is not only secure but also convenient for daily crypto usage.
Summary & Takeaways
- Record your mnemonic phrase in the safe manner (e.g. metallic board)
- Store your mnemonic phrase in a secure location (that you can remember tightly)
- Choose an offline, decentralized and secure wallet
- Be careful in the daily usage
- Revoke unnecessary DeFi authorization from time to time
- Upgrade your crypto knowledge regularly
Founded in 2018, SafePal is a cryptocurrency wallet that aims to provide a secure and user-friendly crypto management platform for the masses. Being the first hardware wallet portfolio of Binance, SafePal is now serving more than 2 million users across the globe. SafePal provides hardware wallet and software wallet product lines, all paired and managed through the SafePal App, where users can easily store, manage, swap, trade, and grow their crypto wealth. SafePal has not only supported 15 languages, 23 blockchains, 10,000 tokens, and all the NFT standards, but also integrated with Binance DEX, Binance Spot Trading, and all DApps on Ethererum, BSC, Tron and Polygon networks.
SafePal Website: www.safepal.io
SafePal Media Kit: https://www.safepal.io/pub/Safepal_Media_Kit.pdf?v=2