Security Issues Encountered in the Crypto Space

Personalities are decisive in how people approach matters. Meticulous people pay great attention to details and try to take precautions in advance about problems. Skeptics, on the other hand, tend to focus on risks rather than opportunities. Those who have these characteristics are most likely to succeed in security-related jobs.

Because I am neither a skeptical nor a meticulous type, security-related issues have never been at the top of my agenda. Many years ago, our house was robbed once, and some gold was stolen from the house. After this incident, I put our valuables in a bank safe. And then I didn't encounter any serious break-ins.

And I haven't had any problems with the money I've kept in the bank so far. Until recently, I also did not have any negative experience with cryptos. Recently, my crypto coins have been stolen from my Metamask wallets three times. Each time the scenario was different. I entered a site that I shouldn't have entered in the first one and connected my Metamask wallet, and my Ethereums on the BSC network were transferred to another account. In the second one, although I didn't connect to any site this time, another small amount of my Ethereum was stolen due to malware I suppose. And on the third, I was the victim of a phishing case that made me feel like an idiot. As a result of globalization, fraud scenarios are becoming more and more refined.

This is how I learned that security is extremely important in the crypto space by experience. Because of the theft cases, more than half of the profits I made have flown away.

Cyber security problems in banking have been solved with a concept called "something you know and something you have." Something you know happens to be the password, something you have is usually mobile phones. Even if fraudsters somehow get hold of the password, they can't transfer the money because they don't have mobile phones. Or, on the contrary, when they have a mobile phone, they don't know the password.

In the crypto world, the security problem in centralized exchanges is solved thanks to SMSs sent to mobile phones and Google authenticator. So how much does it make sense to leave crypto on centralized crypto exchanges? My experience shows that centralized exchanges are quite safe compared to non-custodial wallets. Nevertheless, it is possible to forget about the thousands of Bitcoins stolen from central exchanges around the world and in Turkey.

I bought a Ledger Nano S hardware wallet last week. It took me quite a while to learn how to install and use it. These hardware wallets can also be used in conjunction with Metamask wallets. The only problem is that a person who learns 24 security words can buy another Ledger Nano and steal the cryptos in that wallet again. So again, something you know and something you have doesn't quite fit the concept. I thought to memorize the words. And I am also concerned about how my crypto assets will be transferred to my wife and children if something happens to me.

Although the Know Your Customer principle is interpreted negatively by people in the crypto world, it solves many security problems. These days, I'm saying to myself it's good that I've followed the principle of never investing money I can't effort to lose.

Of course, all this has not broken my determination to invest in crypto and produce content about it. Crypto is still considered a new world and we continue to learn altogether.

Thank you for reading.

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