Crypto Security Pro Tips

The cryptocurrency sector is nascent and rife with scams and security misconceptions. This page details some common security tips for anyone interested in investing in the blockchain/crypto sector. This document assumes that the reader has a basic understanding of how blockchain wallets work.

## The Goal Of Criminals: Steal The Key To Your Wallet

A blockchain wallet essentially represents an address on the blockchain, which is associated with one or more transactions, also recorded on the blockchain. In order for a transaction to be submitted to a blockchain for processing, it must first be signed by the (hopefully) owner of the wallet. This signing action is accomplished by usage of the private key associated with the wallet. This private key, once acquired, gives anyone the power to approve transactions, including draining the wallet of all funds associated to it.

The primary focus of any person involved in cryptocurrency should be to **PROTECT THEIR PRIVATE KEY**.

## A Quick Word About StrongBlock Nodes

StrongBlock nodes are currently **non-transferrable**, making it even more important for node investors to take all precautions for protecting their wallet(s). If someone gains access to your private key, they will be able to claim rewards from your nodes indefinitely.

It's worth noting that node transfer is a milestone on the StrongBlock 2022 Roadmap.

## How To Protect Your Private Key

#### Use A Cold (Hardware) Wallet

Using a cold wallet such as Ledger or Trezor is a vital layer of protection for your wallet, because your private key is stored on the device and nowhere else. This means that in order to complete a transaction, the device itself must be present and plugged in. After you approve the transaction on the device, it will transmit the signed transaction back to the service that is processing the transaction (for many this is MetaMask, but there are many other services that act as gateways to cryptocurrency transactions). These hardware wallets also implement pin password, which adds another layer of security, should the device be lost or stolen.

In the workflow example below, You can see how a hardware wallet provides an additional layer of security (this example omits blockchain transactional mechanics).

### Why A Software Wallet Is Unsecure

Software wallets such as MetaMask, are convenient and provide some security, but are still exposed to a variety of attack vectors, such as malware, malicious websites/phishing, and OS-level viruses. The best practice for using MetaMask is to attached hardware wallets to it, but not to use the default wallet generated by MetaMask at all.

### Your Seed Phrase

When you create a new wallet, you will be given a seed phrase, which is a special sequence of words. These words allow you to restore your private key to your wallet, in the event that something happen to the wallet itself (destroyed, lost, stolen, etc). This is convenient, but presents several serious considerations for any cryptocurrency investor:

##### Lost Seed Phrase

If your seed phrase is lost or forgotten (some try to memorize it; not recommended), then you will not be able to restore your wallet. If you lose access to the original wallet, then you have lost any funds associated with that wallet. If you still have access to the wallet, then you are in luck, because you can transfer the funds to a new wallet and (hopefully) not lose the seed phrase to that one.

#### Stolen Seed Phrase

If your seed phrase is stolen, then the person with knowledge of it, can restore your wallet and drain all of your funds. It is vital to act quickly if your seed phrase is stolen by transferring your funds to a new wallet before anyone else does.

### Protecting Your Seed Phrase

Write down your seed phrase and store in in a secure location.

*BONUS: If you wish to secure your seed phrase from other risks (such as fire), then consider transferring it to a more permanent medium. Some cryptocurrency users will transfer their seed phrase to metal plates and store them in safety deposit boxes, or other secure locations.*

Never store pictures or files of your seed phrase on any electronic device, phone, or computer, including cloud storage.

Never give your seed phrase to anyone, for any reason.

### Additional Protection Tips

These additional precautions are recommended to provide additional security.

* Avoid using mobile devices for any cryptocurrency transactions.
* Use a dedicated computer for all cryptocurrency transactions. Leave it turned off when not in use.
* Use a dedicated, security-hardened browser solely for cryptocurrency transactions (i.e. do not browse random websites with this browser). Brave is a popular choice, but there are several.
* Establish a VPN prior to performing any cryptocurrency transactions. This will make it more difficult for bad actors to fingerprint your identity/location.
* Never post your public wallet address in public online spaces (social media, Discord, forums, etc), as doing so will allow bad actors to gather fingerprinting information about you.