How to Store Crypto Assets Safely
With the rise of Play-to-Earn and blockchain games, the opportunities to earn crypto assets while having fun have increased dramatically in recent years.
However, many people still lose valuable tokens due to incorrect wallet settings or phishing attacks. In this article, we'll explain security basics that even beginners can practice, as well as how to protect your assets and connect them to investment opportunities.
Furthermore, understanding the cycles in which markets repeatedly rise and fall will further strengthen risk management. Please also refer to our article on the next cryptocurrency bubble, which summarizes past price trends and factor analysis.
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Why Should Security Be a Top Priority?
Crypto assets are managed by users, and if the keys are lost, the assets are lost.
Although blockchain technology is highly resistant to manipulation, there is no way to recover the private key or seed phrase if it is leaked.
The Coinbase Learn guide also warns that “account hijacking and phishing are common, so basic defenses are crucial.”
Implement two-factor authentication for daily logins, set unique and long passwords, and review your transaction history regularly.
These small habits are the first line of defense against big losses.
How to Choose the Right Wallet
The rule of thumb is to use both hot and cold wallets, depending on the purpose.
Hot wallets available through smartphone apps and browser extensions have excellent transfer speeds and are convenient for receiving in-game winnings.
However, since they are always online, it is undeniable that these wallets are easy targets for malware.
On the other hand, hardware wallets like Ledger and Trezor are designed to be less likely to lose assets unless physically stolen, as they are only signed when connected to a USB.
If you are used to receiving game rewards directly to your hot wallet and transferring them to your hardware once a week, you can balance convenience and security.
Three Steps to Take Immediately After Receiving Play to Earn Winnings
By following the sequence of reception, confirmation, and evacuation, you can minimize damage in the event of an emergency.
First, make sure the game transfer transaction has been confirmed on the blockchain.
Simply use a block explorer to check the hash and transaction amount match to prevent address redirection by fake sites.
Second, make sure the token contract address you receive is the same as the official address.
Since fake tokens often circulate in new games, it's safe to check for the latest information on the official Discord or X developers (formerly Twitter).
Third, make it a habit to immediately transfer some of the funds you want to keep for the long term to a hardware wallet and set the balance to zero.
This may seem like more of a hassle, but always minimizing the amount of money that is vulnerable to attack will greatly reduce the mental burden.
Expanding Investment Opportunities After Ensuring Security
Once the security steps are complete, you can start managing assets.
You can keep your game rewards as is, but there are many options, such as converting some of your rewards into USD stablecoins to reduce volatility or staking them in DeFi liquidity pools to earn a return.
The important thing is to diversify your investment goals and not concentrate risk in one place.
Before investing, read the smart contract audit reports and check the opinions of users who actually use it in the community.
By tracking TVL trends on aggregation sites like CoinGecko and DeFiLlama, you can determine whether a project is safe and not affected by short-term enthusiasm.
Additionally, to simplify tax calculations, it's a good idea to familiarize yourself with tools that automatically retrieve transaction details in CSV format from the start, which will greatly simplify your year-end response.
Checklist to Get Started Today
Rather than difficult skills, it's the small steps you take every day that will determine your ultimate assets.
Check your transaction history for 10 seconds in the morning, never click on unknown links, and keep your seed phrase on paper in a fireproof safe.
These are simple steps, but many hacking cases are caused by negligence in these steps.
Also, whenever there is an official update for the game, always check the file hash on the official website.
Malware disguised as updates is a persistent threat, and in most cases, you won't notice it until your wallet is empty.
Finally, realize that security measures are simply “overkill,” and make it a habit to stay updated with the latest information.
This is the fastest way to turn your winnings into incredible value in the future.
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Well, that's our discussion this time. Hopefully it's useful!
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