Introduction
Decentralisation is one of the selling points of cryptocurrency as everyone likes the idea of being in control of their financial assets rather than have their assets in a centralised system but phishing, wallet hacks or drainers, smart contract exploits are a total buzzkill in a decentralised system. Due to the safety issues onchain, some users now prefer to use centralised wallet to trade and store their digital assets. Which is an irony because decentralised wallets and platforms were meant to guarantee funds safety but nowadays that is not the case.
Why does safety matters in Web3?
It has become almost a common occurrence in the crypto world to hear about a digital wallet getting drained, a crypto project being hacked, smart contract being exploited by hackers. All these have led to billions in losses for users and crypto projects. Consequently, when hackers strike like that, it often affects the price of the affected project's token which can lead to losses for holders, and in some cases, it could affect multiple tokens in the crypto market. This is why safety is of great importance in Web3.
How to stay safe onchain
Users must ensure they have a good understanding of the crypto world and how it works. They should know the difference between decentralised and centralised crypto platforms, how to send tokens to another wallet address, how to identify the appropriate network chain to use, how to bridge from one chain to the other, how to use a decentralised wallet, how to sign a transaction and so on. This will ensure that a user knows what they're doing when using a digital wallet and interacting with a crypto project onchain. This is important because there have been cases of users making mistakes onchain which has led to loss of digital funds. After getting a hold of activities onchain, the next is to protect oneself from hackers.
How users can protect their funds onchain
There are a lot of bad actors in Web3 who uses different approach to scam unsuspecting users onchain. These people post phishing links on fake social media accounts, send fake airdrop links in the DM and email, invite users to buy fake coins or honeypot tokens. One important thing to know is that crypto projects will most likely not send a DM or mail telling users to click a link and they have their official social media platforms they use to communicate with their community. Regarding honeypot or fake coins, users should verify the tokens onchain with platforms like coingecko or coinmarketcap and also know that "when an offer is too good to be true then it's most likely not true". Finally and most importantly, users should always revoke their wallet permissions and disconnect their wallet after using a crypto platform or protocol as this will prevent losses when a project is hacked or smart contract gets compromised. It is also good to make use of burner wallets to interact with crypto platforms and use a separate wallet that is meant for storage of digital assets preferably a cold wallet which should never be connected to any crypto platforms. Creating a burner wallets is easy as multiple wallets can be created on different decentralised crypto wallet platforms.
Conclusion
The issue of safety in Web3 cannot be taken with unseriousness because it involves money and no one wants to lose their assets because of a mistake when sending tokens, wallet drain or hack. It is very important that users understand how Web3 works because ignorance is not an excuse in this case. Like they say; it's better to be safe than sorry.
Thank you for reading and I hope you're staying safe onchain.
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