Economy
How to Protect Your Crypto From Scams, Hacks
In 2023, it is estimated around $2 billion was lost by investors to scams, rug pulls and hacks. Although the technology is becoming more secure and stable and many users are more aware of the tricks used to steal assets, there are still ways for thieves to extract your crypto if you aren’t careful.
Experts at Smart Betting Guide have provided a guide on the best ways to keep your crypto safe in 2024.
1. Do not store your password and seed phrase on the Cloud
For many people, the best and most convenient way to access crypto is through an exchange or a crypto wallet. Cryptocurrency wallets store users’ public and private keys while providing an easy-to-use interface to manage crypto balances. These exchanges require you to create an account with a password, and wallets give you extra security through the use of a seed phrase. Seed phrases are a sequence of random words that store the data required to access or recover cryptocurrency on blockchains or crypto wallets. Hackers will often attempt to steal these in order to gain access to your crypto and steal it.
It is vital that these passwords and phrases are not stored in the cloud or on a device that could potentially be hacked. Instead, write these down, or get them engraved on a metal card (to protect against water damage or fire) and store them somewhere secure within your property.
Finally, no crypto protocols or their customer support staff will ever ask for this information from you, so if someone asks for it they are trying to steal your crypto.
2. Use a hardware wallet instead of an exchange
If you want to ensure your crypto is completely protected, a hard wallet is the best choice. This is a device such as a USB thumb drive that securely guards a crypto user’s private cryptographic keys in offline or “cold” storage, ready to be used online to complete a crypto transaction whenever you are ready. These are much safer than keeping crypto on an exchange; like with the FTX collapse, users lost billions of dollars of crypto stored in their wallets. Hardware wallets ensure that your crypto is safe from hackers and exchange collapses alike.
Pros: Cannot be accessed by anyone online and is completely secure from online attacks, also prevents loss of crypto from exchanges collapsing
Cons: Could be lost or damaged physically, rendering the crypto useless (although some come with backup features now)
3. DYOR – Do your own research
A rug pull is a scam where a cryptocurrency or NFT developer hypes a project to attract investor money, only to suddenly shut down or disappear, taking investor assets with them. These scams can often be well disguised, which makes them very difficult to spot. Many may be advertised across social media and entice investors through the promise of making lots of money. This is why it’s important to do your research before investing your money in any cryptocurrency or NFT.
Here are the things to look out for when thinking of investing in a new or unknown crypto:
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– Developers
Investors should consider how credible the team behind the project are. Are they known in the crypto community, and do they have a good or bad track record? Be sure to check the legitimacy of social media accounts. Have they just been created, or is there a clear history that the person is who they say they are? Anonymous developers are a red flag, and any projects are approached with caution. Anonymous developers are a red flag and any projects are approached with caution.
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– Whitepaper
It is important to check the quality of the white paper, this is a document that explains the purpose of a project and how it works. For a cryptocurrency, the whitepaper is a guide to its technology, features, and goals. If the whitepaper seems vague or doesn’t offer a valued use case or tokenomics then it could be a potentially risky investment.
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– No liquidity locked
One of the easiest ways to distinguish a scam coin from a legitimate cryptocurrency is to check if the currency is liquidity-locked. With no liquidity lock on the token supply in place, nothing stops the project creators from running off with the entirety of the liquidity.
Investors should also check the percentage of the liquidity pool that has been locked. A lock is only helpful in proportion to the amount of the liquidity pool it secures. Known as total value locked (TVL), this figure should be between 80% and 100%.
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– No external audit
It is now standard practice for new cryptocurrencies to undergo a formal code audit process conducted by a reputable third party. One notorious example is Tether, a centralised stablecoin whose team had failed to disclose that it held non-fiat-backed assets. An audit is especially applicable for decentralised currencies, where default auditing for DeFi projects is a must. However, potential investors shouldn’t simply take a development team’s word that an audit has taken place. The audit should be verifiable by a third party and show that nothing malicious was found in the code.
4. Verify fake apps and fake crypto exchanges
These are a very popular type of scam and target many investors, however, new investors are more likely to be impacted by these as they may be unsure of what to download. These fake apps can be used to steal money, cryptocurrencies or seed phrases and passwords. The best way to avoid these scams are:
- Never search for crypto apps directly from an app store. Always find the direct download link or redirect link to the app store from the company’s official website or whitepaper.
- Check for the number of app downloads and number of reviews – if these are low this is a red flag
- Check the developer of the app, this should be verifiable and come from the official company. Check for spelling mistakes and also other apps made by the developer.
5. Extra security measures
Finally, there are some basics that should be adhered to which can protect your day-to-day data and accounts as well as your crypto.
- Never click links on emails you are unsure of where they originate from.
- Set up Two Factor Authentication (2FA), this means hackers would need your phone to hack you even if they have all your other account details.
- Don’t click popups or links that come up on the internet or social media
- Be cautious of any messages you receive from people who say they can ‘make you money fast’. These have become popular across social media and utilize fake accounts to try and get your money.
A spokesperson from Smart Betting Guide commented: “Hacks, scams and rug pulls not only pose a threat to individual investors but cast a shadow on the broader narrative of cryptocurrency as a revolutionary force in finance. They erode trust, stifle innovation, and impede the progress towards a more inclusive and decentralized financial future. Therefore, the task at hand goes beyond personal security; it is a shared responsibility to fortify the foundations upon which the future of finance stands.”
By Dipo Olowookere
The first trading session of 2026 on the floor of the Nigerian Exchange (NGX) Limited ended on a positive note with a 0.57 per cent growth on Friday.
This was buoyed by renewed appetite for stocks across the key sectors of the market as investors rebalance their portfolios for the new year, especially with the commencement of the controversial tax laws.
Data from Customs Street showed that the banking space advanced by 2.32 per cent, the insurance improved by 2.07 per cent, the energy index expanded by 1.38 per cent, the commodity sector rose by 0.71 per cent, and the consumer goods landscape advanced by 0.21 per cent, while the industrial goods closed flat.
At the close of business, the All-Share Index (ASI) was up by 879.33 points to 156,492.36 points from 155,613.03 points and the market capitalisation went up by N562 billion to N99.938 trillion from Wednesday’s N99.376 trillion.
Yesterday, the quartet of FTN Cocoa, Deap Capital, Mutual Benefits, and ABC Transport chalked up 10.00 per cent each to sell for N5.50, N2.09, N3.41, and N4.51 apiece, while Aluminium Extrusion gained 9.93 per cent to settle at N23.80.
However, Abbey Mortgage Bank declined by 6.25 per cent to N6.00, FCMB shrank by 4.56 per cent to N11.50, Seplat Energy depreciated by 3.43 per cent to N5,610.00, Guinea Insurance lost 2.26 per cent to close at N1.30, and Universal Insurance went down by 1.65 per cent to N1.19.
A total of 440.0 million shares worth N25.0 billion exchanged hands in 40,245 deals during the session compared with the 1.2 billion shares valued at N35.1 billion traded in 27,884 deals in the previous session, representing a surge in the number of deals by 44.33 per cent and a shortfall in the trading volume and value by 63.33 per cent and 28.78 per cent, respectively.
Chams topped the activity table after the sale of 120.3 million units worth N455.1 million, Linkage Assurance traded 21.2 million units valued at N38.3 million, Lasaco Assurance exchanged 19.5 million units for N48.6 million, Aradel Holdings sold 15.6 million units worth N10.7 billion, and Access Holdings transacted 14.3 million units valued at N317.3 million.
By Adedapo Adesanya
The Naira closed the first session of 2026 positive against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) as it gained N4.91 or 0.34 per cent to trade at N1,430.85/$1 compared to the previous rate of N1,435.76/$1.
This was a similar trend in the spot market against the Pound Sterling and the Euro on Friday session as the Naira chalked up N8.47 on the British currency to close at N1,925.78/£1 versus Wednesday’s closing rate of N1,934.24/£1 and appreciated against the European currency by N9.64 to quote at N1,678.24/€1 versus N1,687.88/€1.
In the black market window, the Nigerian currency firmed up against the Dollar yesterday by N5 to sell for N,475/$1 compared with the previous rate of N1,480/$1 and improved against the greenback at the GTBank counter by N17 to settle at N1,435/$1 versus the previous value of N1,452/$1.
The appreciation at the market came as demand eased as the year commenced with a positive outlook for the FX market in which the Central Bank of Nigeria (CBN) said reforms will further enhance efficiency and transparency, narrow the premium between the Nigerian Foreign Exchange Market and Bureau de Change rates, and sustain exchange rate stability. In addition, improved domestic oil refining capacity is expected to reduce foreign exchange demand for fuel imports.
The apex bank said that external reserves of Nigeria will climb to $51.04 billion in 2026 from $45 billion in 2025. The reserves are expected to be boosted by reduced pressure in the FX market based on the anticipated rise in oil earnings, sovereign bond issuance, and diaspora remittance inflows.
On inflation, the CBN anticipates that headline inflation will decelerate further to 12.94 per cent in 2026, driven by a combination of factors, and is expected to come down to 10.75 per cent in 2027.
In the cryptocurrency market, Ripple (XRP) rose above $2 for the first time since mid-December, extending a strong start to 2026 as traders pointed to steady spot exchange traded-fund (ETF) inflows and improving regulatory sentiment in the US. However, it closed the day at $1.99 after gaining 6.3 per cent.
Traders reassess the regulatory backdrop after SEC Commissioner Caroline Crenshaw, a staunch critic of crypto spot ETFs, departed, which some market participants viewed as clearing the way for a more crypto-friendly policy stance.
Further, Dogecoin (DOGE) rose by 9.1 per cent to $0.1400, Cardano (ADA) grew by 7.9 per cent to $0.3856, Litecoin (LTC) jumped by 2.5 per cent to $81.37, and Solana (SOL) added 2.4 per cent to trade at $130.35.
In addition, Ethereum (ETH) appreciated by 1.8 per cent to close at $3,077.46, Binance Coin (BNB) expanded by 0.7 per cent to sell for $871.01, and Bitcoin (BTC) increased by 0.6 per cent to $89,461.15, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
By Adedapo Adesanya
Three securities on the NASD Over-the-Counter (OTC) Securities Exchange lifted the bourse by 0.28 per cent on the first trading session of the week on Friday, January 2.
According to data, Central Securities Clearing System (CSCS) Plc added 63 Kobo to close at N35.63 per unit compared with the previous price of N35.00 per unit, Geo-Fluids Plc increased by 51 Kobo to finish at N6.51 per share versus N6.00 per share, and Industrial and General Insurance (IGI) Plc expanded by 5 Kobo to end at 63 Kobo per unit, in contrast to the preceding session’s 58 Kobo per unit.
As a result, the market capitalisation went up by N5.94 billion to N2.126 trillion from N2.120 trillion, and the NASD Unlisted Security Index (NSI) chalked up 10.28 points to close at 3,553.84 points compared with Wednesday’s closing value of 3,543.56 points.
Trading activity resumed yesterday after a break on Thursday for New Year’s day celebration and the activity level was low.
The volume of securities fell by 99.7 per cent to 3.6 million units from the previous 1.4 billion units, the value of securities depreciated by 99.6 per cent to N14.1 million from N3.6 billion, while the number of deals increased by 9.5 per cent to 23 deals from 21 deals.
The most active stock by value was CSCS Plc with 264,050 units exchanged for N9.4 million, Geo-Fluids Plc traded 433,470 units for N2.8 million, and IGI Plc transacted 2.9 million units worth N1.9 million.
But, IGI Plc was the most active stock by volume with 2.9 million units traded for N1.9 million, Geo-Fluids Plc recorded the sale of 433,470 units for N2.8 million, and CSCS Plc sold 264,050 units valued at N9.4 million.
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