The Wild West. So far, that’s what the crypto space seems to have been all about. As many an empire learned, fortunes can change overnight. Contrary to the norms of the conventional financial system, when something goes wrong, there’s almost nothing that you can do. You, the end user, are stuck with the bill. One of the biggest culprits? We’ll walk you through some simple, yet easily overlooked, crypto wallet blunders you might be making.

I'm not talking about getting rug-pulled on some shady DeFi project (though that's definitely a risk). I’m speaking about the simple, elementary mistakes that are quietly eating away at your crypto stash. Think of it like this: you wouldn't leave your front door unlocked with a pile of cash sitting on the table, would you? That’s what so many Americans are doing, crypto-style, every single day.

Believing All Wallets Are Created Equal

This is one of the most insidious and toxic myths — maybe the biggest, most pervasive of them all. You look at a pretty dashboard with a cute moniker and think, “This must be secure." Wrong. Asking a user to choose a wallet based on aesthetics is like asking someone to choose a doctor based on how bright their smile is. You need to look under the hood.

Others, like ZenGo, prioritize convenience. This may result in your private keys — the keys to your crypto kingdom — being held in a more vulnerable manner. What’s more, it is quite likely that others have the vulnerabilities that hackers have found and exploited. That nearly free wallet you developed? Is it really secure?

Just as not all houses are created the same, neither are all e-wallets.

Ignoring the Seed Phrase = Disaster

Your seed phrase – that 12 or 24 randomly generated words are all it takes to unlock your account – is the key. It’s the back door into your whole wallet. Lose it, and you lose access to all your money! Forever. I’ve heard horror stories of people losing millions because they lost their seed phrase.

  • Analogy: Think of it like the One Ring from Lord of the Rings. It's powerful, but incredibly dangerous if it falls into the wrong hands. Treat your seed phrase with that level of respect.

So, what should you do? Write it ahead of time — and perhaps at more than one secure vault. One final rule of thumb (that’s more like a rule of life) Never, ever, ever share it—at least not outside of your own department. Not even when they say they are tech support. Particularly not when they advertise as customer service!

Skipping Two-Factor Authentication (2FA)

In 2023 online, it’s not turning on 2FA that’s the equivalent of leaving the front door wide open for hackers. It’s the equivalent of leaving your car unlocked and the keys in the ignition. 2FA increases your security by requiring an additional factor. Now, you’ll need a code generated on your phone or other device in addition to your password.

That often makes all the difference between future-proofing your crypto and having it permanently lost. Enable it. Now.

Falling for Phishing Scams

Phishing scams are getting increasingly sophisticated. Gone are the days when scams were limited to badly spell-checked emails from Nigerian princes. Today, they take the shape of phishing websites, impersonated customer service representatives, and even hacker-created browser extensions.

The goal is always the same: to trick you into giving up your private keys or seed phrase. As always, verify the URL of any website you’re on, and don’t trust someone who contacts you and asks for your personal information. Please note that no legitimate service will ever ask you for your seed phrase.

Neglecting Software Updates

Software updates aren’t just an opportunity to add shiny new lights and bells. They typically contain important security updates that repair holes in software that criminals can use to gain access to computers. Failing to install wallet software updates is like leaving the barn door wide open in your cypherpunk digital security.

Automate updates as much as you can, but develop a routine to check in for updates on a regular basis.

Not Understanding Transaction Fees

Something as simple as transaction fees can chip away at your crypto gains, more so on blockchains like Ethereum with expensive gas fees. Learn how fees are assessed and structure your transactions accordingly to improve your bottom line by thousands of dollars annually.

Make user-friendly suggestions like using layer-2 scaling solutions or transacting at off-peak times to minimize fees.

Relying Solely on Hot Wallets

Hot wallets are ideal for everyday transactions as they’re always online. This convenience has a tradeoff—they are more susceptible to hacking than cold wallets, which live offline. Consider a hot wallet your checking account and a cold wallet your savings account.

For the safest method of storing crypto, keep the majority of your assets in a cold wallet. Keep only what you need for daily transactions in a hot wallet. That’s why hardware wallets, such as Ledger or Trezor, are a widely used method for cold storage.

Creating a wallet of your own is a great way to stay in control. Additionally, through ChangeNOW’s simple API integration, you can start earning passive income by earning a 0.4% affiliate commission! Remember this: Security first. No revenue is enough to take the risk of losing your shirt due to a hack because you didn’t want to invest in security.

The crypto landscape is evolving rapidly. New threats emerge every day. Keep your eyes open, stay suspicious, and do everything you can to keep your crypto safe. Your financial future depends on it.