The wild Wild West
Hey you, I assume you’re aware of the whole saga going on in crypto right now, lots of people have been hurt badly by the events that have been rolled out just this week. Even for me, it has been a rough week, but it helped to shine a light on the true adversarial world that is the cryptocurrency space.
And so, for the small percentage of us crazy enough to stay, I want to give tips and tricks to help on your trustless and self-sovereignty journey.
Wallets
We can’t do without them in the crypto Wild West, but in order to prevent the risk of a central point of failure where all your interactions come from one wallet alone yikes we have to learn to break it up into different wallets for different use cases since there are enough to literally give a wallet to every atom in the universe.
There are two main types of wallets, the Hot wallet which is one that always connected to the internet, and the Cold wallet which only connects to the internet to say sign transactions
Before those two, let’s first look at (1.) the MAIN wallet that interacts with trusted fiat gateways like exchanges to bring funds both in and out. It can either be a Cold or Hot wallet depending on the amount you’re transacting but boils down to personal preference.
- 2? VAULT wallet, hopefully, a hardware wallet that hodl your long-term assets in. So you don’t go leaving your net worth on an exchange somewhere or worse on a hot wallet in your browser - double yikes.
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3? The Hot wallet used for Whitelists for the crypto degens out there, interacting with any untrusted(yet) project or protocol should be with a separate wallet with all new seed phrases to make as many child wallets as you need.
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4? A hot wallet to interact with trusted dexes with,
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5? Burner hot wallet for high-risk profile interactions like a degen mint or stealth mint or something else on the unknown shadowy unknown spectrum
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6? Lastly a wallet to store items you don’t want to keep short to medium-term projects
Summary
- Main wallet for exchanges
- Vault wallet for long-term storage
- Trading wallet1 for untrusted Dapps
- Trading wallet2 for trusted Dapps
- Burner for high-risk interactions
- Wallet for Short to medium-term storage
Treat your managing crypto security like a business because it actually is 🤝🏽