New crypto users shouldn’t ‘rush into DeFi’ — Security firms

Newcomers to cryptocurrency may be put off by the frequent reports of hacks in the industry, but experts in crypto security offer reassurance and suggest strategies for minimizing risks.

In early January 2024, according to a report by, the cryptocurrency world had approximately 580 million users – marking a significant gain of around 34% compared to the previous year.

New crypto users shouldn’t ‘rush into DeFi’ — Security firms

As more people join the world of cryptocurrencies, CryptoMoon reached out to security experts for advice on how newcomers can protect their digital assets.

According to Luciano Ciattaglia, who leads the services team at cybersecurity firm Hacken, novice users of digital assets would be wise to steer clear of decentralized finance (DeFi) and decentralized exchanges (DEXs) when embarking on their crypto adventure.

“Don’t rush into DeFi or DEXs straight away. Most people use centralized exchanges or wallets for all their crypto investments, and that’s fine.”

When depositing money with a custodian, users depend on their reliability. Therefore, for first-time users, it’s recommended to select reputable exchanges known for their strong security measures and prompt access to funds.

According to Ronghui Gu, the co-founder of CertiK, he holds a comparable viewpoint. For novice investors who harbor apprehensions about security, Gu recommends utilizing trusted cryptocurrency exchanges and digital wallets instead.

“Consider investing in a hardware wallet for the highest level of security, as these devices store private keys offline and are highly resistant to network-connected hacking attempts.”

Gu emphasized the importance of crypto security education for potential investors. They should take care of their private keys by storing them securely and use robust passwords. Furthermore, enabling two-factor or multifactor authentication on all relevant accounts is essential for added protection.

A security expert warned that new cryptocurrency users need to be cautious when sharing their personal information online and avoid falling for phishing schemes.

New crypto users shouldn’t ‘rush into DeFi’ — Security firms

In the opening week of April, CertiK disclosed that a startling number of 83 crypto phishing scams occurred during the first quarter of the year 2024. Gu expressed concern, stating that the complexity and effectiveness of these attacks had reached an alarming peak in this period.

In addition to the points made by Ciattaglia, it’s important for new users to note that the projects they consider investing in should undergo security evaluations. As advised by the security expert, projects with completed security audits and ongoing bug bounty programs are less susceptible to “rugging” (or disappearing with investors’ funds).

New crypto users shouldn’t ‘rush into DeFi’ — Security firms

In the latest quarterly update, Hacken revealed that over half (56%) of the projects targeted in hacking attempts between January and March 2024 had skipped the security audit process. Consequently, these firms left numerous vulnerabilities unaddressed.

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2024-04-24 14:10