This essay discusses the security concerns related to cryptocurrency airdrops, focusing on the risks of encountering frauds and malicious smart contracts during airdrop hunting.
In this essay, we explore the issue of security in the context of cryptocurrency airdrops. There is frequently a risk of coming across frauds or dealing with malevolent smart contracts when airdrop hunting, or looking for protocols and infrastructure that could distribute tokens to your community.
Security concerns with cryptocurrency airdrops
Cryptocurrency airdrops can boost investor liquidity, but they also pose cybersecurity risks.
This atmosphere favors those who are active in crypto forums, use smart contracts, and transact on the blockchain.
The main risk is that such big exposure could lead to the loss of every dime in one’s wallet, especially if one doesn’t grasp cybersecurity risks.
Users can badly damage their finances by accepting a fraudulent contract or receiving false txs.
After completing all the necessary procedures before airdrop hunting, hackers and exploits may target your program.
Any cryptocurrency activity should consider the latter risk, but when processing 20–30 transactions per day, it should be handled more.
Atomic Wallet’s software tampering cost consumers $100 million.
There must have been some of these people using the non-custodial wallet to communicate with DeFi projects in order to participate in an airdrop.
This article’s goal isn’t to incite fear and dread over a seemingly “random” activity, but rather to draw attention to the dangers that must be faced in order to effectively manage risk.
In fact, the issue is not the risk per se, but rather the extreme exposure to which many people subject themselves without taking any precautions.
In the section next, we’ll examine ways to mitigate these dangers and raise one’s level of security in the amazing world of cryptocurrency airdrops.
How to improve safety while airdrop searching
First and foremost, one should make a new wallet just for airdrop hunting if they want to boost their security.
Using money meant for regular Web3 protocol engagement to maintain one’s own crypto holdings is not advised at all.
In order to use one’s core assets as little as possible and only for absolutely necessary transactions, such cashing out or modifying one’s asset allocation, one should keep them in a hardware wallet.
You can be confident that the possibility of losing everything is avoided if you abide by the first rule!
Second, there are numerous safety measures to take into account in order to protect one’s cryptocurrency wallet from malicious parties.
Due to many variables, the most experienced Web3 users are aware of this. Hardware wallets are safer than software wallets.
Instead of MetaMask and Trustwallet, use hardware wallets like Ledger, Trezor, Jade, Bitbox, and Coldcard.
The hardware wallets we’ve described link to MetaMask and preserve offline private key storage security.
Sharing your private keys with others during an airdrop hunting operation makes you more vulnerable to hackers.
DAOs and whales controlling multimillion-dollar amounts prefer Safe multi-signature wallets.
Checking website origins improves security.
Even if you are an experienced user who has frequently used decentralized platforms, it is best to avoid typing the name of the dApp into search engines and instead use reliable sources like the official Twitter pages, “CoinMarketCap,” “DefilLama,” “DappRadar,” or the ecosystem pages (if you are working for a chain airdrop like zkSync, Starknet, PolygonZKEvm, etc.).
Finally, if you’re new to Twitter, avoid bogus token and airdrop accounts.
Scam accounts copy damaging smart contracts that drain your wallet using purpose-built internet interfaces.
Before assuming, check for an airdrop. It will be obvious because everyone will be talking about it.
Two excellent self-protection tools
We highlight two extremely helpful self-defense measures to boost protection against the systemic risk of airdrop hunting activity.
The first option is called “Revoke cash” and enables you to revoke certain authorizations you’ve already given to decentralized platforms.
You are frequently prompted to approve the contract before carrying out a smart contract transaction.
Although this is required and initially not harmful, it is possible that the platform you have been using and the smart contract are being tampered with, which could result in the risk of your wallet being contaminated.
You should visit the official Revoke cash website, put your address in the search area, and click “revoke” depending on the authorization you wish to revoke after interacting with new dApps in the crypto world.
The program also has a section called “exploits” where you can see which blockchains and protocols are currently vulnerable in real time.
“Wallet guard” is the second gadget, which is excellent for security concerns.
With this free plugin, you may examine the specifics of the agreements being made whenever you come into contact with a smart contract.
Without this tool, we would have to go and examine the source code of the numerous contracts we are about to sign in order to figure out what provisions are required (providing we had the skills to distinguish between legitimate and non-legitimate circumstances).
Our lives are made simpler by Wallet Guard, which also warns us about phishing sites and any potential risks we may be encountering.
For individuals who regularly practice the vocation of airdrop hunter, an extra shield of protection is absolutely important.
Always keep in mind that safety comes first.