The Lido Liquid Staking Controversy: Examining Governance and Control


TL; DR

It is wise for crpto investors to keep their crptocurrencies on exchanges and some in digital wallets.

Gate.io is one of the most secure crptocurrenc exchanges to store digital assets.

It is safer to store digital assets in cold wallets than hot wallets.

Introduction

One main advantage of blockchain is that it is ver difficult for people to hack and manipulate it. Most of the threats that digital asset users encounter like hacking emanate from the locations where we manage them such as computers and smartphones.

Hackers often compromise the bridges we use to connect with the blockchain. However, there are several measures we can appl to reduce incidents of malicious exploits of digital assets like Bitcoin and Ether (ETH). In this article, we discuss how we can protect our digital assets such as crptocurrencies and NFTs.

How to Sta Safe on Crptocurrenc Exchanges?

Most people who trade digital assets such as crptocurrencies and NFTs often use crpto exchanges to bu, hold and trade them. However, when using exchanges ou should be safet conscious to prevent hacking and other fraudulent activities, including phishing.

It is important to note that keeping crptocurrencies on exchanges ma be safer than storing them in hot wallets and cold wallets. However, one should use secure exchanges such as Gate.io, Coinbase and Binance which have ver few cases of malicious exploitation. In fact, Gate.io exchange is known for its high securit measures.

Secure crpto exchanges are more reliable than digital wallets for several reasons. First, people who use cold wallets ma lose them at an time since the are movable gadgets. Once someone loses a cold wallet he/she will never recover the digital assets stored there.

Read also: The Difference Between Hot Wallet and Cold Wallet

Similarl, one ma also lose mnemonics and private kes. People often use their mnemonics, also called mnemonic recover phrases or seed words, to access digital assets that are in a crpto wallet. However, when ou use a crpto exchange there is no danger of losing mnemonics or private kes.

With exchanges, if ou lose our important details like passwords ou can get assistance from the support team. For renowned crptocurrenc exchanges like Gate.io the chance of losing our crptocurrencies is ver slim since there are various securit measures in place to prevent hacking, for example.

How Crptocurrenc Exchanges Enhance their Securit

As hinted earlier, established crptocurrenc exchanges have high securit standards. The use several laers of protection. For example, their sstems ma use SMS verification, email verification, 2-fa, account passwords and withdrawal passwords. It is often difficult for a bad actor to breach all these securit measures.

Read also: Keep Your Assets Safe with the Gate Web3 Wallet

Anti-mone laundering and know-our customer (KYC): An exchange that implements know-our-customer reduces risks from exchange users. This is because it verifies the suitabilit of the users. The exchanges ma emplo various methods which include automated solutions where identit verification is done through computers and smartphones. In addition, the can use human beings to make the necessar cross-checks.

Multiple authentication: Most exchanges also use strict authentication methods. These authentication measures reduce chances of illegal access to individual accounts. For instance, an exchange ma use Google authentication, email code and passwords. It becomes impossible for bad actors to guess all these requirements to breach someones account.

Use strong passwords: Another good practice is for exchanges to request strong passwords from their customers. A strong password should have at least eight characters that comprise special characters, lower cases, capital letters and numbers. Such a combination of characters makes it difficult for hackers to crack it.

In addition to strong passwords, the exchanges should introduce account locking sstems for user who exceed a certain number of failed login attempts. Emploing captcha also helps the exchange to differentiate between malicious _script_s and human beings.

Session handling: Another great practice for exchanges is to make sure that sessions expire within a given period such as 5 minutes. When a session expires the user should login again with his/her password and 2 factor authenticator. If there are no time limits attackers ma take over sessions without implementing the required securit measures.

Wallet securit: Crptocurrenc exchanges should store the customers digital assets in secure digital wallets. If the store them in inappropriate wallets that affect the exchanges liquidit and reputation. Worse still, the exchange ma lose the customers digital assets.

Usuall, a crpto exchange should store the excess crptocurrencies in cold wallets. It should also ensure that the people responsible for transferring digital assets between cold and hot wallets are safet conscious. In most cases, the task of moving digital wallets between wallets is done b two or more people and entails the use of multisig.

TLS Securit: An crptocurrenc exchange should emplo basic securit measures. For example, it should use encrpted messages and strong ciphers when communicating. This prevents communication interception through man in the middle attacks. Thus, exchanges should alwas use the relevant TLS configurations.

Deposits and Withdrawals: The exchanges should be extra careful when handling deposits and withdrawals. As an example, the should consider established safet measures like proof of transaction finalit. For instance, a transaction is considered successful after the expiration of a certain period. Deposits should be booked after getting confirmations.

FIAT Pament Integration: The fiat pament integrations that exchange use should be secure with no risks in crpto. It should be a must for an exchange to have a reliable endpoint to confirm various transactions whether deposits or transfers. Also, there should be no room for modification of transaction details. This is because if the endpoints are not secure attackers ma alter transaction details and steal funds.

Read also: How to Protect Your Assets with Securit Devices?

Quick Currenc Operations and Transfers: Transfers of crptocurrencies in exchanges should be ver quick to avoid large fluctuations in price during the process. However, the sstems should maintain high securit. For example, incorrect rounding of decimal numbers ma lead to losses.

Measures to Maintain High Securit of a Crpto Wallet Even if ou can use exchanges to store our crptocurrencies there are times ou should store digital assets in our wallets. Therefore, it is important to become vigilant at all times when using digital wallets.

Using Cold wallets: It is best to store our crptocurrencies in cold wallets which spend most of the time offline. You will onl connect them to the internet when ou want to make transactions.

Hardware wallets, which are phsical devices to store our digital assets, are ver secure. However, if ou lose our device ou will lose all our assets.

Read also: What can I do to make m Gate.io account more secure?

Multi-signature Wallets: With Multi-signature wallets, ou need at least two private kes to make transactions. If ou do not have the required number of private kes ou cannot transfer crptocurrencies. As a result, if an attacker gets hold of onl one of the kes he/she will not be able to steal our funds.

Keep Your Private Kes Safel: Your wallets private ke is the gatewa to our digital assets. If ou lose it ou will never get our crptocurrencies no matter their quantities. On the other hand, if an attacker gets hold of our private ke he/she will steal our digital assets.

Therefore, ou need to back up our private kes and write our mnemonic phrase down. And ensure to keep a paper backup of our seed phrases.

Use Multiple Crpto Wallets: It is also important to store crpto in different wallets. You increase the securit of our digital assets b diversifing our crpto holdings across several wallets. This means that if an attacker accesses one of our wallets ou save crpto that exists in the other wallets.

Avoid Using Public Wi-Fi: It is best to avoid using public Wi-Fi when ou are interacting with our digital wallets. Usuall, hackers target public Wi-Fi located in public spaces, cafes and airports, among others. Also, such networks often lack securit protocols and encrption.

Whats Better Crpto Exchanges and Crpto Wallet for Saving Crptocurrenc?

We have alread discussed the measures ou can take to keep crpto safel when using digital wallets. Also, we have looked at how crpto exchanges make their platforms secure.

From our analsis it is clear that it is safer to keep crpto on exchanges than digital wallets. Nonetheless, ou need to choose a secure crpto exchange to store our crpto. With exchanges there are no risks in crpto related to the loss of hard wallets, private kes and seed phrases.

However, cold wallets often experience fewer hacking incidents than crpto exchanges and hot wallets. At the same time, one should store crpto in different wallets and exchanges to minimie loss in case of attacks. Gate.io is one of the best exchanges to trade crpto.

Conclusion

Crptocurrenc holders and investors can store their digital assets on crpto exchanges or wallets. It is best to store crptocurrencies in cold rather than hot wallets. Nevertheless, man investors prefer to keep their crpto on exchanges for greater securit. Gate.io is one crpto exchange known for its high securit standards.

FAQs about Crpto Storage

What is the safest wa to keep crpto?

The safest wa to keep crptocurrenc is to hold them on a secure crpto exchange. Gate.io is one of the most secure crptocurrenc exchanges to store our crptocurrencies. However, hardware wallets like Treor and Ledger also offer securit for digital assets.

How can crpto be safe?

People should store crptocurrencies on exchanges as there are minimum risks. Nevertheless, individuals and institutions can also keep their digital assets in hardware wallets.

How do ou sta safe trading crptocurrenc?

When trading crptocurrenc ou have to implement high securit measures like multiple authentication and strong passwords. You should avoid using public Wi-Fi and diversif the storage of the crpto assets.

How do ou avoid risk in crpto?

When trading crptocurrencies ou should use private Wi-Fi, multiple authentication, and diversif their storage. It is also important for ou to use strong passwords and backup our private kes and seed phrases.

Is Gate.io a safe crpto exchange?

Gate.io, ranked number 7 b Coingecko, is one of the safest crpto exchanges storing and trading crptocurrencies. It uses SMS verification, 2FA, account password and email verification which secure an account on the platform.