By Rafał - 2018-10-08
No matter which coins you invest in, whether it is a masternode or not, you need to secure your wallets.
Always encrypt your wallet and use strong password. Do not keep your passwords saved at computer. If you encrypt your wallet but saved your password on the same PC, it’s as good as keeping your private keys exposed.
That is definitely a bad idea because there are many malicious players ready to steal your coins. So you should either make effort to have your password memorized or save it on a flash drive.
After you encrypt your wallet you need to make a backup. This is very important because if something happens to your PC, you would not be able to get back your coins without a backup.
Most masternode wallets have wallet.dat files. Bitcoin wallets have recovery phrases which should be written down on a piece of paper and stored in a safe place. It makes sense to store a copy on a flash drive.
Get your private keys. A lot of guides for masternode/pos coins do not mention this. Your private key is the only 100% sure way to get to your wallet even if you forget your password.
DO NOT SHARE YOUR PRIVATE KEYS WITH ANYONE!
If a scammer gets your private key, your coins are lost, and there’s nothing you can do about it. The same is applicable with your backup phrases and passwords. Do not share them with anyone.
To get your private key at most masternode coins wallets: open wallet>go to console>type: dumpprivkey (wallet adress)
Chat (discord, telegram etc)
As a masternode coins investor you should have discord channel. A lot of important announcements, updates and even giveaways are passed across to users there. But remember to trust no random persons there, since scammers also use the channel to defraud people.
If someone wants to help you with masternode set up, do not send him any important information like private key, VPS details and passwords. A lot of people may really be trying to help but one scammer could cause you to lose a lot of money.
Be sure that you are talking to team member of the project you plan to invest in and not an impostor. On discord anyone can change username. If someone writes to you that “there is a swap and you will lose your coins if you not send them here fast” do not panic and do not believe them.
Most teams would never contact you about swaps. You need to contact them if there is a need for upgrades and compliance. Always verify that you are talking to the team member.
Try not to hold all your coins in one wallet. Also do not hold all your BTC on software wallets like exodus or Jaxx.
If you do not trade a lot avoid holding coins at exchanges. If you have few BTC you should buy Ledger Nano S or Trezor. You can also get paper wallet.
Hardware and paper wallets are meant to hold large amounts of coins. The rest you, should distribute in various wallets that you own. Say some amount on exodus, some at mobile, low volumes on exchanges and so on.
These are the basic safety steps you should apply to keep your coins safe.