CoinGecko Releases 2024 Crypto Security Guide Highlighting Wallet Risks and Phishing Threats

In a newly updated guide published in November 2024, CoinGecko outlines key strategies for enhancing crypto security across wallets, smart contracts, DeFi, and NFTs. The guide compiles insights from industry experts shared on platforms like X (formerly Twitter), emphasizing practical steps for users to protect their digital assets from increasingly sophisticated threats [1]. The guide is structured to cover the most critical areas of crypto security, offering actionable advice for both beginners and seasoned participants in the space.

One of the central themes is the importance of understanding custody—specifically, who controls a user’s private keys. The guide explains that while centralized exchanges offer convenience, they also come with risks such as withdrawal freezes and insolvency, exemplified by the FTX collapse [1]. Self-custody, particularly through hardware wallets like Ledger or Trezor, is recommended for storing high-value assets. However, it is also highlighted that self-custody brings its own risks, such as accidentally sharing a seed phrase or sending funds to the wrong address [1].

Phishing attacks are also a major concern, regardless of the user’s experience level. The guide details how phishing can occur through malicious links or deceptive emails, with the goal of gaining unauthorized access to a user’s wallet. Approval-based attacks are emphasized as particularly insidious: once a user approves a contract, it can access their tokens indefinitely unless revoked [1]. Tools like Revoke.cash and Etherscan are recommended for managing and revoking these approvals.

The guide also discusses the growing popularity of alternative wallets like Rabby, which are designed with DeFi users in mind. Rabby offers features such as built-in approvals lists and anti-phishing safeguards when connecting to dApps. Detailed transaction simulations allow users to review the potential impact of a transaction before executing it, adding a layer of security that traditional wallets lack [1].

Smart contract security is another focal point. The guide explains the importance of audits and outlines a three-step process for understanding smart contract audits. It also recommends using Etherscan to analyze contracts, verify their legitimacy, and track the transaction history of addresses. CoinGecko’s security tab is highlighted as a quick reference point for users assessing the safety of a protocol or token [1].

DeFi-specific risks are also explored, including price manipulation, flash loan attacks, and governance exploits. The guide explains how flash loan attacks work—using a single block to manipulate prices across exchanges for profit—and highlights the importance of continuous code monitoring to address vulnerabilities as they emerge [1].

For NFTs, the guide warns against common scams such as fake airdrops, social engineering, and phishing attempts. It stresses the importance of verifying the legitimacy of an interaction before approving any transaction. Users are also advised to avoid reusing passwords, using a password manager, and enabling two-factor authentication (2FA) as standard practice [1].

The guide concludes with a set of practical tips from CoinGecko co-founder Bobby Ong, who emphasizes the adversarial nature of the crypto space and the need for vigilance. His recommendations include using cold wallets for large holdings, avoiding the public exposure of wallet addresses, and maintaining strong personal data hygiene [1].

Overall, the guide serves as a comprehensive resource for users navigating the evolving threats in the crypto space. By combining expert insights with actionable advice, it aims to empower users to make informed decisions and protect their digital assets effectively [1].

Source: [1] Master Guide To Crypto Security: Crypto Wallets, Smart Contracts, DeFi, And NFTs

(https://www.coingecko.com/learn/master-guide-to-crypto-security)