Crypto scams and hacks steal billions of dollars every year. Most of it is preventable. Here's exactly what to do — and what never to do — to keep your funds safe.
Rule #1: Use a Reputable Exchange
Start with a regulated, established exchange. Coinbase is publicly traded, US-regulated, and has never been hacked. Avoid random exchanges promising high returns or no fees.
Rule #2: Enable 2-Factor Authentication (2FA)
Turn on 2FA immediately. Use an authenticator app (Google Authenticator or Authy) — not SMS. SIM swapping attacks can bypass SMS 2FA and drain your account.
Rule #3: Never Share Your Seed Phrase
If you use a self-custody wallet (like MetaMask or a Ledger hardware wallet), you'll have a 12–24 word "seed phrase." Never share this with anyone, ever. Anyone with your seed phrase owns your crypto. Period.
Coinbase manages custody for you, so you don't need to worry about seed phrases if you're keeping crypto on Coinbase.
Rule #4: Recognize Common Scams
- ❌ "Send crypto, get double back" — always a scam, no exceptions
- ❌ Fake Coinbase support — Coinbase will never DM you asking for your password or 2FA code
- ❌ Too-good-to-be-true yields — 50%+ APY platforms are almost always scams
- ❌ Phishing emails/sites — always check the URL; bookmark the real site
- ❌ Crypto "investments" from strangers — aka pig-butchering scams
Rule #5: Use a Strong, Unique Password
Use a password manager (1Password, Bitwarden) to generate and store a unique password for your exchange account. Never reuse passwords.
For Larger Amounts: Hardware Wallet
If you hold more than $5,000 in crypto, consider a hardware wallet like a Ledger Nano X or Trezor. Your private keys are stored offline, making remote hacks impossible.
Quick Security Checklist
- ✅ Reputable exchange (Coinbase)
- ✅ Authenticator app 2FA enabled
- ✅ Strong, unique password
- ✅ Seed phrase written down offline (not in photos or email)
- ✅ Bookmark the real exchange URL
- ✅ Never click crypto links in emails or DMs
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