How to protect yourself from a DeFi hack

How to protect yourself from a DeFi hack
  • Learn to protect yourself from a hack to your wallet and keep your cryptocurrencies safe.

In a world where Decentralized Finance (DeFi) projects are gaining more and more importance in the crypto ecosystem, becoming a normal part of the crypto-financial life of millions of people, safety is an issue that cannot be put off until tomorrow.

As we have reported in Bitcoin Mexico, over the past week more than $ 120 million in Bitcoin (BTC) and Ethereum (ETH) were stolen from users of the BadgerDAO platform.

Contrary to what we may think, the attackers did not steal the project’s wallets and take the millionaire sum by force, but it was the users themselves who gave the attackers permission to steal their cryptocurrencies.

Due to blind trust in the project, and even a bit of carelessness and lack of education, the users signed the contracts in their Metamask, but, these signatures were from the criminals. Just like these, there are thousands of other cases where, unfortunately, human error, through lack of education and blind trust, has been the reason why billions of dollars end up in the hands of criminals.

That is why, we want our readers not to be part of the statistics. To do this, in Bitcoin Mexico We will give you the tools and where and how to look so as not to be a victim of a hack.

How to protect yourself from a DeFi hack?

1) Always check the details of the transaction

If you have a decentralized or explorer wallet, as in the case of Metamask or Ronin Wallet, you will know that for every action you want to do within an NFT game like Axie Infinity, enter a DeFi project to take advantage of mining pools and others, It is necessary to give authorization (sign a contract).

You always have to review the details, in this case, we will have to review the “Origin” It is the same page where we are, in addition, that the message tells us to determine what permissions you are granting to the portal on our funds.

How to protect yourself from a DeFi hack
Source: Reddit

On the other hand, you have to look at the details of the operations.

  • Do the Blockchain coincide ?: In the first place, the network in which I first signed my entrance to the portal coincides with the blockchain network in which I want to do my operation. In this case Binance Smart Chain (BSC).
  • Check the transaction amount: Many of the errors that result; either hacking or loss of capital transactions costs high network error, or a momentary network congestion. It occurs simply because the amount of the transaction were not reviewed.
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It is worth remembering that DeFi and NFT games are only Smart Contracts, and therefore, it does not matter if it comes from the official page or from a criminal who is trying to take over our assets, you can always see absolutely everything that is being done. executing on the contract within the Blockchain.

2) Review the validity of the contract

As expressed, It is vitally important to check the link where the contract was signed from, But, perhaps the most important tip is to also review the contract.

Anyone can create a DeFi token on the ETH, BSC or Solana network, and one of the most common methods used by attackers to steal cryptocurrencies is TOKENS spoofing. Thus It is vitally important to review the contract for each token or cryptocurrency that we add.

To do this, portals such as CoinMarketCap indicate in each of the tokens its contract address where it also shows all the details of the project, such as its official website. In addition, in its search engine you can copy any Smart Contract address and it must necessarily take you to the token page. Otherwise, you will find yourself facing a possible scam and you will be at risk of losing your funds.

How to protect yourself from a DeFi hack

With this, you make sure that both the wallet you are using and the web page where you signed the entry are real. In case this is not the case, Raise alerts from both your wallet and the portal, as well as the validity of the token.

3) Use the full potential of the security of your wallet

No matter what type of wallet you use to manage your funds in DEFI as PancakeSwap or NFT games like Infinity Axie, You must install the official extensions to detect identity theft attacks (Phishing). This anti-Phishing extension will automatically protect against malicious sites trying to impersonate a trusted platform.

How to protect yourself from a DeFi hack

For example, we know that criminals pay Google to place first in the search engine pages that try to steal cryptocurrencies, which are an undetectable copy of the original pages.

Although, these extensions will automatically protect you from these attacks, no doubt must remain alert to these possible attacks and that the extension could have a fault.

4) Use Hardware Wallets

Most Wallets allowing entry to DEFI as Metamask, allow to connect an external physical wallet to improve safety. Well, it does not matter if a criminal takes control of your wallet or the funds of the DeFi platform or game, they fall into the hands of criminals, your digital assets will be safe in your Hardware wallet.

In addition, it is also important to note that this is not a good idea to hodlear large amounts of criptomonedas in such wallets.

How to protect yourself from a DeFi hack

Information taken from the article How to Protect Yourself From DeFi Platform Hacks

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