Crypto Casino Security Basics: Protecting Your Wallet and Account
Wallets get hacked every day. Most of them because the owner did something dumb. Here is what dumb looks like and how not to do it.
A wallet gets hacked. This happens constantly. Why? Because someone clicked a phishing link or used the same password everywhere. Here is what dumb looks like and how to avoid it.
The Setup
Your crypto casino account sits in a wallet. The wallet is either on an exchange (like Kraken), in a self-custody wallet (like MetaMask), or in a hardware wallet (like Ledger).
If it is on an exchange, the exchange controls the private key. This means the exchange can move your money if they want. See: FTX. See: Celsius. See: any exchange that went bankrupt.
If it is in a self-custody wallet, you control the private key. This means you can move the money whenever you want. This also means if someone gets your private key, they can steal the money.
If it is in a hardware wallet, your private key is stored on a physical device. To move money, you have to physically approve the transaction on the device. This is the safest.
The Mistakes
Mistake 1: Using the same password everywhere.
You have a password for your email, your broker, your casino. All the same. This is stupid.
If a hacker gets your casino password (because the casino database leaked), they try that password on your email. If it works, they can reset passwords on everything else.
Use a password manager. Generate unique passwords. Store them encrypted.
Mistake 2: Clicking links in emails.
A "casino" sends you an email. "Confirm your account." Click the link. Enter your password. You just gave your password to a phisher.
Real casinos send you notifications in-app, not via email. They do not ask you to confirm anything.
Never click links in emails. Go directly to the website and log in there.
Mistake 3: Trusting URLs.
A link looks like casino.com but it is actually casin0.com (zero instead of o). You click it. Phishing.
Always check the URL before entering a password. Copy-paste from your password manager. Do not type.
Mistake 4: Public WiFi.
You connect to WiFi at a café. You log into your crypto casino. Someone on the same WiFi is monitoring traffic. They see your password (if the site is not HTTPS). They now have your account.
Use a VPN. Or do not gamble on public WiFi.
Mistake 5: Downloading files from untrusted sources.
You download a "wallet manager" that looks cool. It is malware. It logs your keystrokes. Your password is stolen.
Only download from official sources. Verify the download hash. Be paranoid.
The Defense
Security is boring. But it works.
Use a password manager (1Password, Bitwarden, KeePass). Generate unique passwords. 20+ characters. Random.
Use two-factor authentication on everything. Not SMS (SMS can be intercepted). App-based (Google Authenticator, Authy).
Use a hardware wallet if you are holding significant crypto.
Do not keep money in your casino account. Deposit only what you plan to gamble that session.
Check the URL every time. Type it from your bookmarks. Never click email links.
That is the whole game.
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