Welcome to Module 4 - Course 4 of Mission Web3!
In this lesson, we will explore the importance of securing your crypto assets while using Decentralized Exchanges (DEXs).
By following these essential tips, you can ensure your safety while participating in the decentralized financial ecosystem.
It is important to note that these security risks are relevant for all of web3.
Why Do You Need to Secure Your Crypto?
Cryptocurrencies and decentralized finance (DeFi) have introduced a new paradigm of financial freedom, but they also come with unique security challenges. Unlike traditional centralized systems, Web3 puts the responsibility of safeguarding your assets directly in your hands. Here are some reasons why you must prioritize the security of your crypto assets:
Self-Custody: In Web3, you have full control of your wallet and private keys. While this grants you complete ownership, it also means you are solely responsible for protecting your assets.
Irreversibility of Transactions: Once a transaction is recorded on the blockchain, it is irreversible. This means that if your funds are stolen or lost due to inadequate security measures, there's no recourse to recover them.
Growing Cyber Threats: The decentralized nature of Web3 attracts cybercriminals who attempt to exploit vulnerabilities in user security. It is crucial to stay vigilant and protect your crypto assets from potential threats.
Tips To Maintain Security When Using a DEX:
Secure Your Mobile Phone and Wallet Seed Phrase: Your mobile phone often acts as the gateway to your crypto assets. Keep your phone locked with a strong passcode or biometric authentication. Moreover, when you receive the seed phrase for your wallet, write it down on a physical paper and store it securely. It is important to note that you can have multiple wallets. We recommend keeping most of your funds in a cold storage wallet, and smaller amounts accessible on your phone
Consider Hardware Wallets/Cold Storage: Hardware wallets provide an offline, tamper-proof environment to store your private keys securely. They are widely regarded as one of the safest options for holding crypto assets. We may also explore partnering with reputable hardware wallet providers to offer our users additional security options.
Verify Using Blockchain Explorers: Prior to committing to tokens exclusively traded on a specific DEXs, ensure to verify their transaction history and present status on their respective blockchain explorers such as Etherscan, BscScan, or Tronscan, depending on the blockchain.
Exercise caution with phishing websites: As a web3 user, it's imperative to maintain a critical perspective and verify all information you encounter, particularly when it pertains to your financial matters. Numerous scammers craft counterfeit websites resembling well-known crypto ventures, or they endeavor to appear as authentic new token initiatives.
Be sure to also ensure the presence of a "padlock" icon located at the upper side of your browser, just preceding the URL, signifying a secure connection to the website in question.
As always, to maintain overall security in web3, it is wise to stay informed about the various types of scams taking place.
Below, you'll find a selection of examples to remain watchful for:
Fake Token Scams: Scammers create tokens with names that are very similar to well-known cryptocurrencies. They often use tactics like changing a few characters in the token name or mimicking popular projects. Users may think they are buying a legitimate token, but in reality, they are purchasing a worthless or even malicious token. Always double-check the token's contract address before making any transactions.
Impersonation: Scammers create social media profiles that closely resemble official accounts of DEX platforms or influencers. They use these fake accounts to spread misinformation, offer fake promotions, or solicit funds from unsuspecting users. Always verify the authenticity of social media accounts and be cautious of unsolicited offers.
Phony Airdrops: Scammers promote fake airdrops that promise users free tokens in exchange for providing their private keys or other sensitive information. In reality, these airdrops are designed to steal users' assets. Legitimate projects typically do not require users to provide private keys or sensitive information.
Swapping on a DEX
The onchain task for this module will require you to swap to USDbC (Base Bridged USDC) for 1$ worth using Uniswap on Base.
You just finished your fourth Mission Web3 module! This calls for a celebration!
Now that you’ve learned about DEX, it’s time to commemorate your on-chain achievement by claiming a Galxe NFT!
Claim your Galxe NFT here before you proceed to the next Module.
In Module 5, we’ll learn all about Decentralized Finance!