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"Doing proper research to find a promising crypto can take hours - but there’s nothing quite like the moment you realise you’ve uncovered a true gem. Suddenly, you start dreaming of how your portfolio could explode, and all that time and effort feels worth it.
But here’s the catch: you’re not out of the woods yet. If you’re not careful, it’s all too easy to lose everything.
That’s why in today’s video, we’ll walk you through the hidden threats you face after you’ve invested, and how to protect yourself from going from rich to rekt. This is a video you can’t afford to miss."
~ Coin Bureau
The video provides a comprehensive guide to securing crypto holdings, starting with the initial step of selecting a trustworthy exchange. It emphasizes that a suitable exchange should have the necessary regulatory licences for the user's jurisdiction, offer competitive fees, maintain high liquidity for fast and accurate trade execution, and demonstrate strong security practices, such as providing two-factor authentication, using cold wallets for storage, and undergoing regular proof-of-reserve audits. Following the purchase of crypto, the most critical security step is immediately moving assets off the exchange and into a personal wallet, acknowledging the industry mantra "not your keys, not your coins." Leaving funds on an exchange exposes the user to platform failure, a risk tragically demonstrated by the collapse of FTX, highlighting the necessity of taking full ownership of private keys.
The guide then details wallet options, classifying them as hot (software, connected to the internet, and thus highly susceptible to hacking, malware, and phishing attacks) and cold (hardware, offline, offering superior protection and highly recommended). A separate, major risk category involves the management of the recovery seed phrase. Users are strictly warned against storing the seed phrase digitally on any device, instead advocating for physical storage using a pen and paper or, better yet, a durable metal card to protect against physical damage like fire or water. Proper management also requires creating multiple, correctly written backups and storing them in separate, secure locations. Finally, the video addresses counterparty risk, which includes the potential for crypto project insiders to dump tokens, stablecoin issuers failing to maintain adequate reserves, and the inherent vulnerabilities in both centralized platforms and decentralized finance (DeFi), where smart contracts and oracles can be exploited.
0:00 Intro
0:50 Using The Right Exchange
4:09 Keeping Your Crypto In Your Own Wallet
7:10 Hot Wallet Risks
10:26 Seed Phrase Risks
13:47 Counterparty Risks
Source - Coin Bureau YouTube: https://www.youtube.com/watch?v=2rMPSYXes6k
Disclaimer: This video is provided for informational purposes only, and not offered or intended to be used as legal, tax, investment, financial, or any other advice.
