Protect your assets in the DeFi space on EVM-based blockchains

Learn how to avoid scams & best practices for security in our comprehensive guide.

DRIVENecosystem always makes care to keep their investors safe, for the typical investor, the world of DeFi on EVM-based (Ethereum Virtual Machine) blockchains can be a minefield. With so many ways to make big profit on your investments, it is important to know the risks and take the right steps to protect your assets. In this blog post, we'll go over some tips to help you stay safe in the DeFi space and avoid common scams like phishing websites, dusting attacks, and phishing emails or messages.

Best practices to protect your assets

  1. Protecting your seed phrase: this is the most important aspect of keeping your assets safe on EVM-based blockchains. Your seed phrase is a string of words used to generate your private keys and restore your wallet if you lose access to it. It is critical that you keep your seed phrase private and do not share it with anyone. It is recommended that you write it down on paper and keep it somewhere safe, or that you use a hardware wallet that allows you to store it offline. It should never be stored on an unsecured device or shared with anyone, as it could be used to gain access to and steal your assets.
  2. Double-check URLs: Scammers frequently use phishing websites to steal your private key and steal assets from you. In order to deceive you into believing that you are on the real website, they frequently use domain names or URLs that are similar to those of trustworthy websites. Always double-check the URL of the website you are visiting to make sure it is the right one to avoid falling for these ruses.
  3. Use a hardware wallet: Hardware wallets are much more secure than software wallets because they are physical objects that store your private keys offline, like Ledger and Trezor. This is crucial for larger cryptocurrency holdings because hardware wallets add an additional layer of security to safeguard your assets.
  4. Use a unique password and enable 2FA: When it's feasible, use a unique password for your wallet and enable two-factor authentication (2FA). Even if your private keys are lost or stolen, this could aid in preventing unauthorized access to your account.
  5. Keep your device and software up-to-date: To make sure that any security holes are patched and that your device is shielded from the most recent threats, keep your hardware and software up to date.
  6. Be cautious of unexpected transactions: When receiving small amounts of cryptocurrency that you weren't expecting, be wary of unexpected transactions. Use a blockchain explorer to verify the transaction and make sure it is legitimate rather than opening your wallet to check the balanc
  7. Be aware of too good to be true offers: Watch out for phishing websites that offer quick money back or a way to double your money, among other too good to be true offers. Do your own research (DYOR) and avoid believing any website that makes such claims.
  8. Be cautious of phishing emails or messages: Be aware that scammers may also send links to phishing websites via Telegram or Discord messages or phishing emails. Avoid clicking on any links that you are unfamiliar with and confirm the sender's legitimacy twice.

These recommendations will help you keep your assets safe and secure as you benefit from the possibilities offered by EVM-based blockchains. Always be cautious, and assume the worst if something seems too good to be true. You can learn how to use tools like BscScan, how to avoid rug pulls and other scam-like projects, and some of the best practices for crypto investors from a few educational videos our creative director, Cody Krantz, made that you can find on our YouTube channel. Be sure to check them out by clicking here.

In conclusion, EVM-based blockchains are strong ecosystems that provide lots of chances for investors to profit, but they also necessitate that users take the necessary precautions to ensure the security of their assets. Investors can stay safe and get the most out of their DeFi investments by double-checking URLs, using hardware wallets, creating unique passwords, enabling 2FA, maintaining software and device updates, being wary of unexpected transactions, being aware of too-good-to-be-true offers, and being wary of phishing emails or messages. Stay safe, and happy investing!