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
- If you suspect compromise, move funds immediately
- Transfer to a fresh wallet (new seed phrase)
- Revoke all token approvals on compromised wallet
- Document everything for potential recovery
- Report to relevant authorities if theft occurred
Key Principles
- Security is layers, not a single solution
- Assume you will be targeted
- Convenience is the enemy of security
- Regular security audits of your setup
- Plan for worst-case scenarios