A tearful summary of experiences to prevent fund theft!

How to Prevent Theft of Crypto Assets?

Due to the decentralized and anonymous nature of crypto assets, the probability of recovery is very low, especially since most users are small retail investors who do not have much influence, unlike platforms that can gather many industry resources for assistance when stolen!

Preventing future problems is crucial for retail investors!

1. Passwords must not be the same.

Most retail investors tend to be lazy and use the same password for funds across different platforms. If the password for one account is leaked, it can easily lead to the theft of funds across all platforms.

Therefore, you must set different passwords for any account where you hold assets.

2. If you receive a notification of unusual login activity, definitely change your password.

Do not be complacent; as soon as you receive a notification of your account being logged in from a different location, whether it’s a Google account, social account, or any account involving funds, you must change your password immediately.

Because your first moment of carelessness could lead to significant asset losses in the future.

3. Store assets in top exchanges whenever possible.

In terms of ranking for asset storage security, my opinion is: hardware wallets > exchanges > decentralized wallets > wallet plugins.

Hardware wallets are mostly offline, and unless the wallet is lost and then cracked, generally, there would be no theft of assets; however, typical users rarely use hardware wallets.

Next are exchanges, especially top exchanges like Binance, which have dedicated Safe funds. 10% of the platform's transaction fee revenue goes into the Safe fund, specifically for compensating funds stolen from the platform.

Bitget has established such a fund, with the fund being 10% of the platform's tokens.

After the recent theft incident, it remains to be seen whether Bybit will establish a similar protection fund.

Decentralized wallets are the least secure, especially web-based wallet plugins, which can transfer funds with just one password.

Therefore, I remind everyone to avoid using wallet plugins. Although they are very convenient, they are very insecure for funds.

To be continued~

#资金安全 #bybit #Binance