20 Sep, 2022

To investor and owner: how to protect a crypto project

Investing in crypto projects is a very profitable business. However, it is necessary to choose reliable crypto projects for such purposes. Competent investment in a promising cryptocurrency will bring you a lot of income. This is a great option for long-term investments in cryptocurrency.

   Any competent representative of the market knows that it is extremely necessary to be cautious and calculate many steps ahead to invest in a reliable crypto project. After all, the market is rife with fake currencies, fly-by-night projects, and, importantly, crypto-project owners who don’t care about cybersecurity. How easy it is to be caught by an untrustworthy project!

Simple cybersecurity tips for crypto investors or project owners

  1. Always look at how secure a crypto exchange is when you’re trying to pick one reliable one out of thousands of popular ones. Exchange cybersecurity information is required to be listed in the public domain. A huge red flag is hiding this information.

  2. Use two-factor authentication (2FA) on all your accounts. 2FA is a security feature that requires you to enter a passcode received from an app on your phone in addition to your username and password. This makes it much harder for hackers to gain access to your account.

  3. Use a separate email address for crypto exchanges. It is common for hackers to target personal emails, so you should use a separate address for your cryptocurrency accounts.

  4. Use a password manager. A password manager helps you create and store passwords for all of your accounts in one place. An added benefit is that it can generate strong random passwords for you, too.

The CQR team hopes that no one in 2022 will think of storing user funds on Internet-related hot wallets anymore. Last year, hackers stole over $3.8 billion in cryptocurrencies. The majority of the victims of these hacks are Americans. Solana recently announced that 8,000 hot wallets were compromised following a security breach. The company explained that the theft occurred when hackers gained access to third-party code in these wallets and not Solana’s own. 

Hot wallets include web-based, mobile app, and desktop versions. They are all linked together. If hackers manage to compromise your system or attack the hot wallet you’re using—like in Solana’s case, where attackers stole inactive crypto wallets’ private keys by exploiting security vulnerabilities—they will be able to steal your private key and drain all of the funds from that wallet.

Using a hot wallet is quicker and easier than using a cold wallet, but the risk of theft is also greater.

Actually, you should keep a small amount of crypto in your hot wallet like you would with cash. You wouldn’t carry around all your money at once; why would you do the same thing with cryptocurrencies?

Professional cybersecurity practices

In theory, it’s easy to speculate about how quickly you can find an exchange, invest in it, and always be sure that your crypto capital is under your control. But then multiple questions come up, just like:

How not get lost among crypto projects?

How to get a guarantee that your exchange won’t get hacked tomorrow?

How can you be sure that there are no vulnerabilities in the project you choose to invest in?

How can I be sure that my system (or smart contract) is working properly and without glitches?

How can I check the legitimacy of a project before investing in it?

These questions and many others like them make you think twice about whether it’s worth investing in cryptocurrencies at all. But you can find special services and companies that provide security services for your crypto investments.
Blockchain security is a modern, multi-faceted industry that is handled by specific certified cybersecurity experts. They can monitor your entire system as a SOC, audit your smart contracts, pen test your systems, and provide hundreds of services that will keep your security levels up.

As your cryptocurrency earning system becomes more complex, it will need special maintenance more often and more frequently. For example, smart contracts, like any program or mechanism, need regular debugging and tune-up.

CQR is in the business of cybersecurity to answer any such question for you. To ensure that you, as a crypto owner, don’t get into situations where personal or your users’ data is hacked, CryEye audits smart contracts to protect all the fundamental mechanisms of your crypto project fully and thoroughly. So any crypto investor can be sure that your capital is controlled by you and not by a random hacker, we audit the smart contracts of this project to identify explicit, hidden, and potential vulnerabilities.

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