Web3 is the next iteration of the internet and is slowly reshaping our digital lives. Sometimes it feels like stepping into a sci-fi movie, but it’s real, and it’s happening now. Imagine a place where your digital assets, data, and apps all interconnect in a blockchain-powered universe. Yes, this is Web3 – the new internet era.
But wait, it’s not all smooth sailing. Remember those old pirate stories with hidden dangers? That’s a bit like Web3. In 2022, over $4 billion was lost to hacks. Yikes! That’s why we need to gear up and protect ourselves in this digital treasure hunt.
Lifesaver Tips for a Safer Voyage in Web3
1. Guard Your Treasure Map: Secure Your Private Keys
Think of your private keys as your treasure map in Web3. Keep them off the grid. Whether you memorize them, write them down on paper, or store them on devices like Cryptotag, just make sure they never see the digital light of day.
2. Be the Captain of Your Ship
Self-custody: It’s like steering your own ship in the vast digital ocean. With wallets like Trezor and others, you’re in full control of your crypto and NFTs. But remember, with great power comes great responsibility. It’s worth revisiting our last article on the need for having multiple wallets.
3. Enable Two-Factor Authentication
2FA is your lookout in the crow’s nest, making sure no unwanted guests sneak onboard. It adds an extra layer of security that can save your digital booty.
4. Smart Contracts: Your Digital Agreement
Before you interact with a smart contract, do your homework. Use Etherscan or Cyberscan to check for hidden traps. It’s like reading the fine print before you sign a pirate’s pact.
5. Interact with Reputable Services
Just like choosing the right port to dock your ship, stick to reputable platforms and services. Check for HTTPS in the URL and steer clear of the sketchy parts of the digital sea.
6. Authorizing Transactions: Read Before You Sign
Always read the transaction messages. It’s like checking the coordinates before you set sail. Some dApps might be more pirate than merchant.
7. Protect Your Identity
Decentralized Identifiers, or DIDs, are kind of like your own personal ID for the internet, but without needing a central authority like a government or big company to vouch for you. It’s like a digital passport that’s yours to control. It’s a way to say ‘this is me’ without oversharing personal details. They’re secure, immutable, and keep your digital identity safe.
8. Smooth Sailing: Be Mindful of Market Liquidity
Understand the waters you’re sailing in. Cryptocurrencies like Ethereum or Bitcoin have high liquidity, meaning you can trade them easily. It’s like being on a fast-moving river where you can trade pretty quickly. NFTs, however are more like a serene lake. Trades might not happen as fast, but there’s a whole different kind of value and experience in that journey.
9. Avoiding Sandwich Attacks
And of course, being in Web3, you’ve bumped into Decentralized Exchanges, or DEXs. Here, there’s something called a ‘sandwich attack’ where someone sneaks in and messes with your trades. Best practices suggest setting your slippage (that’s like a safety net for your trade prices) between 0.5 – 2%. It’s a small step that can help keep your trading journey smooth.
10. Always Have a Backup Plan
Last but not least, if you’re adventuring into trading, don’t forget that every good captain has a plan B. It’s smart to know exactly where you’re getting in and out, kinda like plotting your course. And, just like at sea, if things start looking stormy, be ready to adjust and take a different route. Having a plan B can really save the day.
Be Smart, Be Safe
This space is filled with exciting treasures and hidden risks, so it’s essential to stay sharp and prepared. With these tips, you’re better equipped to face the challenges and embrace the opportunities that this new digital world offers. So set sail with confidence, and remember, the best explorers are always those who are ready for anything. Happy Web3 journeying!