Crypto Security Advanced

Advanced security practices separate professionals from those who eventually get hacked.

Multi-Signature Wallets

What is Multi-Sig?

• Requires multiple approvals for transactions
• 2-of-3 or 3-of-5 common setups
• Safe (formerly Gnosis Safe) is standard
• Used by DAOs and institutions

Setup for Individuals

• 2-of-3 with different devices
• One hardware wallet, one mobile, one backup
• Geographic distribution of keys
• Prevents single point of failure

Hardware Wallet Best Practices

Device Management

• Buy only from official sources
• Update firmware regularly
• Use passphrase (25th word) for extra security
• Consider multiple devices for different purposes

Seed Phrase Protection

• Metal plate backup (fire/water resistant)
• Split across secure locations
• Consider Shamir Secret Sharing
• Never digitize seed phrase

Operational Security (OPSEC)

Digital Hygiene

• Dedicated device for crypto
• VPN when accessing exchanges
• Unique email for each exchange
• Hardware 2FA keys (YubiKey)

Social Engineering Defense

• Never discuss holdings publicly
• Verify all communication channels
• No one legitimate asks for keys
• Be skeptical of urgent requests

Transaction Safety

• Always verify addresses character by character
• Use address book features
• Test with small amount first
• Double check network selection

DeFi Security

Contract Approval Management

• Review and revoke unnecessary approvals
• Use revoke.cash or Etherscan
• Set limited approval amounts
• Regular audit of approvals

Protocol Risk Assessment

• Check audit reports
• Monitor bug bounty programs
• Watch for governance attacks
• Diversify across protocols

Incident Response Plan

1. If you suspect compromise, move funds immediately
2. Transfer to a fresh wallet (new seed phrase)
3. Revoke all token approvals on compromised wallet
4. Document everything for potential recovery
5. Report to relevant authorities if theft occurred

Key Principles

1. Security is layers, not a single solution
2. Assume you will be targeted
3. Convenience is the enemy of security
4. Regular security audits of your setup
5. Plan for worst-case scenarios