Make Sure You Test New Wallets and Exchanges Before You Go Big

Reading Time: 2 minutes
  • Everyone wants financial freedom, but few want to put in the hard work
  • As a result, many people skip testing and this results in hacks and scams
  • Testing takes a few hours and gives you total peace of mind

The crypto world encourages us to be as safe and secure as possible, and this is only logical, when you think about it. You are your own bank, and this requires a certain degree of responsibility, for one mistake and all your funds are gone.

Yet, despite this implicated responsibility, few actually heed it and take the time to ensure they are being safe and secure. So, our warning to you is, whenever you create a new wallet or try out a new exchange, test it beforehand.

There’s No Such Thing as Too Much Testing

Whenever you set up a new wallet or crypto exchange account, many people take this as a sign that it was done properly and that it’s legit. As a result, millions of dollars’ worth of crypto has been stolen or gone missing. So, before you go big and send all of your money, take the time to test your new wallet or exchange account properly.

There’s not much you can do for exchanges other than dust your account, but for a wallet, there’s so much you can do. Plan for the worst. Delete your newly created wallet and try to restore it using your seed phrase. If you manage, not only do you now know how the process works should the worst happen, but you also know you wrote the words down properly.

This will save you a lot of time and fear should you lose access to the wallet in the future. You’ll already know the process and this will make you faster and more confident should you lose your wallet access. This might sound crazy, but trust us on this. A little bit of preparation is worse than making a costly mistake.

Dust Your New Wallets and Exchange Accounts

Once you know how to restore your wallet and you’re ready to load it up, or you’re ready to dump all of your crypto on an exchange to trade, it’s time to dust the account. Send a SMALL amount of money or crypto to the wallet or exchange of choice. If it all clears, you can use it and withdraw, then you know it’s safe to progress.

So many people have been caught out by fake exchanges or have had wallets with code added in that routes out your crypto. This might cost you in mining/gas fees and it will take you time for it all to clear, but again, it’s better than losing everything.

Be Cautious

You might think that these issues will never plague you, but why take the risk? If you’re going to be your own bank and be responsible for your financial future, you need to put in the hard work now to make sure your vault is secure. After all, do you think banks don’t test their vaults when they’re installed?