Web 3.0: Wallet and Password Hygiene

Viktor Forgacs

Web 3.0 security advice is everywhere. The same information is shared across platforms, yet people still neglect the basics. We must never stop sharing helpful information because it’s necessary even if it helps one individual. Whether you’re anonymous or not online, wallets and passwords are areas that can’t be overemphasized.

Digital wallets vs. Hardware wallets

Wallets for your cryptocurrency and Non-fungible tokens (NFTs) aren’t to store your assets. Considering that your assets are on the blockchain, the seed phrase is the way to access your money and to prove ownership.

Digital wallets, for example Metamask, are software that authenticates access to your seed phrase. Having a system where you have multi-factor authentication is key. With digital wallets, phishing attempts are real and pose a threat. You must verify each website you’re connecting to and have bookmarks in place for trusted websites.

Hardware wallets, such as the Ledger or the Trezor, are a great way to add security to your NFTs or coins by using a physical device that stores your private keys. Some are Bluetooth-enabled for easy access. It’s of utmost importance you only buy hardware wallets from the manufacturer’s website, avoid purchasing from places such as Amazon or eBay (even if there is a discount). This is to avoid existing malware, previous use of a product, as well as other issues that might arise.

Wallet Hygiene

The most crucial part of storing assets in hardware or digital wallets is to reduce the risk of losing everything. Have multiple wallets with unique seed phrases. Some problems can arise from every angle in this space but having multiple and separate wallets reduces the chance of losing all of your assets at once.

By handling assets this way along with storing seed phrases offline, your security posture improves. Keeping digital copies of your seed phrase, though common among users of wallets for crypto, is a security risk to avoid. Handwriting your seed phrase is a recommended method of storage.

Password Hygiene

Passwords are a problem for a majority of people, even when they’re dealing with crypto and NFTs. Some of the remediating steps include: changing your passwords routinely, storing passwords in secure locations, not re-using your passwords, etc.

Besides protecting your identity and making sure you don’t get doxxed, passwords and wallets present a major area for vulnerabilities. Taking the steps above won’t make you immune to security risks, but your security is enhanced.

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