Security Tips: How to Safely Store Your Digital Wallet

Summary
This article addresses common security issues encountered when using decentralized wallets, including improper backup of mnemonic phrases, accidentally granting transaction permissions to malicious contracts, falling victim to scams, and hacker attacks. For each issue, the article provides detailed countermeasures to help users better protect their digital assets.

As cryptocurrency becomes more widespread, decentralized wallets are increasingly popular due to their high level of autonomy and security. However, using decentralized wallets also comes with certain security risks. This article will detail these common issues and provide corresponding strategies to help users better manage and protect their digital tokens.

1. Failure to Properly Back Up Mnemonic Phrases

Decentralized wallets do not store users' mnemonic phrases, and once lost, they cannot be recovered. Statistics show that one of the most common reasons for token loss is users failing to properly back up their wallet's mnemonic phrases. If a mnemonic phrase is lost or improperly stored, the tokens in the wallet may be permanently lost. Additionally, if the mnemonic phrase is not securely stored, the tokens can easily be accessed by others.

Countermeasures:

• Before using the wallet, ensure the correctness of the mnemonic phrase and back it up properly.
• Use physical media to back up the mnemonic phrase, such as writing it down on paper or using a mnemonic phrase storage box, to ensure its security.
• Ensure secure storage throughout the entire process, and consider necessary disaster recovery to avoid the risks of single-point backup failure.

2. Accidental Authorization of Transfer Permissions to Malicious Contracts

Authorization operations typically occur during interactions with DApps. Be cautious when granting permissions, as if the authorization is given to a malicious contract, the tokens in your wallet may be transferred without your confirmation. The DApp ecosystem is mixed, and careless authorization could lead to asset loss. The only way to avoid such risks is by increasing your security awareness.

Countermeasures:

• Review Contract Source Code: Seek professional auditors to review the contract code to ensure its security.
• Use Trusted Contracts: Prefer reputable and trusted contracts.
• Regularly Check Wallet Authorizations: If you notice your wallet has authorized unknown contracts, revoke the authorization as soon as possible. Recommended site for checking and revoking authorizations: https://revoke.cash/zh.
• Be Cautious with Transfer Permissions: Do not easily authorize transfer permissions, and remain vigilant after authorization, ready to revoke permissions if necessary.

3. Falling Victim to Scams

Scammers employ a variety of tactics, and users who are not highly alert may inadvertently give away their mnemonic phrases or transfer permissions, leading to token theft.

Countermeasures:

• Protect Your Mnemonic Phrases/Private Keys: Any request for your mnemonic phrases/private keys via SMS/phone scams is untrustworthy.
• Avoid Clicking Unknown Links or Downloading Unknown Software: These could be phishing sites disguised by hackers.
• Ensure Website Security: Use reputable websites and ensure that the site's security certificate is valid.
• Regularly Monitor Accounts: Regularly check your wallet accounts to ensure their security.
• Consult Professionals: If you encounter a scam, consult professional institutions or the police.

4. Being Hacked

On the blockchain, mnemonic phrases represent ownership of assets. Once someone else gains access to your mnemonic phrases, they can import them into another device and steal your tokens. Therefore, it's crucial to securely generate and back up mnemonic phrases.

Countermeasures:

• Use Offline Hardware Wallets: Generate and store private keys with offline hardware wallets to enhance security. Avoid storing them on internet-connected mobile devices to prevent hacking and theft.
• Download Wallet Software and Apps Only from Official Channels: Avoid downloading unverified software to minimize security risks and prevent malware from stealing your digital assets or other sensitive information.
• Avoid Copying and Pasting Mnemonic Phrases or Private Keys: Manually enter them to enhance security. Additionally, avoid jailbreaking or rooting your device to prevent hackers from exploiting vulnerabilities to steal your digital assets or other sensitive information. Do not visit unknown links to avoid phishing attacks and data breaches; only visit known and trusted links.

Additional Recommendations

1. Separate Hot and Cold Wallets
   • Hot wallets (e.g., imToken) are easy to use but require good security awareness. Hardware wallets (e.g., imKey) use secure chips to maximize private key security at the hardware level, making them more beginner-friendly. It is recommended to use imToken software wallets for small assets and imKey hardware wallets for large assets. Combining both ensures a good user experience while maximizing asset security.
2. Regularly Update Software and Operating Systems
   • Regularly update or upgrade the software and operating systems on your devices to fix vulnerabilities or bugs and prevent hacker attacks.
3. Manage Applications on Your Device
   • Limit applications' auto-start settings, thoroughly delete unnecessary applications, and avoid installing software from unknown sources. Avoid installing applications with remote desktop viewing functions, as malicious actors may use them to spy on your desktop and steal your mnemonic phrases or private keys.
4. Disable Cloud Storage
   • Do not use automatic cloud functions to upload sensitive data to online accounts, as this could lead to sensitive information leaks if cloud data is compromised.
5. Use Strong Passwords
   • Set strong passwords that include uppercase letters, lowercase letters, numbers, and special characters, and regularly change your passwords.

Final Recommendations

Decentralized wallets offer users greater security and autonomy, but they also come with certain security risks. By understanding these common issues and adopting the corresponding strategies, users can better protect their digital assets.

Lastly, in the "dark forest" of the blockchain world, always remember these two security principles:

• Zero Trust: Maintain a high level of skepticism at all times.

Continuous Security Validation: If you choose to trust something, you must have the ability to verify your doubts and make this practice a habit.