Coinbase experienced a security breach, hackers have been accessing some user data since January 2025, leading to the leakage of sensitive information, severely affecting user asset and identity security, and causing a massive blow to trust in centralized platforms.
💰💳 How can small retail investors protect their wallet security?
🚩 Prioritize using non-custodial wallets (Web3 wallets): Only you control the private keys, and the assets completely belong to you.
🚩 Strong passwords + Two-factor authentication (2FA): It is recommended to enable 2FA and use complex passwords for both exchanges and wallet apps.
🚩 Hardware wallets (cold wallets): It is advisable to spread large assets across multiple hardware wallets and never store recovery phrases or private keys on connected devices❗⚡
🚩 Prevent phishing and disguised websites/software: Only download wallet apps from official websites or channels, pay attention to website spelling and SSL certificates (also known as TLS certificates, a type of digital certificate).
🚩 Regularly check for malware and backdoors: Keep your operating devices secure and avoid authorizing or operating private keys on public networks❗❗❗
🚩 Do not expose recovery phrases or private keys: Do not take photos, screenshots, or store them in cloud drives.
🧑💻 Comparison of exchange and wallet security:
🌳 Advantages of exchanges: Convenient, suitable for short-term high-frequency trading; the drawback is that private keys are controlled by the platform. If the platform suffers a hack or goes bankrupt, the asset risk is extremely high (like the recent Coinbase incident).
🌳 Wallet (self-custody): You control your private keys and assets, and even if the wallet service provider has issues, your coins remain relatively safe. The only risk is the loss or theft of private keys/recovery phrases.
🎣 Common hacker methods for stealing wallets🕴:
❗ Phishing websites and fake apps: Deceive users into entering recovery phrases or private keys, directly controlling the wallet.
❗ Email and mobile phone malware or backdoor programs: Monitor input and steal private keys.
Social engineering attacks/data leaks: Use information leaked from major platforms for targeted fraud or to steal related accounts.
❗ DNS hijacking: Deceive users into redirecting to fake interfaces to steal sensitive data.
❗ Signature phishing: Induce users to sign malicious contracts, achieving token authorization and transfers.
📌 Summary of recommendations: Diversify assets, prioritize using cold wallets, pay attention to network and device security, and never disclose recovery phrases or private keys.
