Self-custody means you, not a third party, control your private keys and thus your assets. This is the cornerstone of DeFi security.

• Store keys in a hardware wallet like Ledger or Trezor, never on an exchange.
• Use a secure, offline method to back up your seed phrase (e.g., metal plate).
• Never share private keys or seed phrases; legitimate services will never ask for them.
• This matters because losing your keys means permanent, irreversible loss of funds with no customer support to call.

Smart contract audits are thorough security reviews by independent experts before protocol deployment.

• Only interact with protocols whose contracts are publicly verified on block explorers like Etherscan.
• Prefer protocols with multiple audits from reputable firms like OpenZeppelin or Trail of Bits.
• Check for a clear bug bounty program, which incentivizes ongoing security research.
• This is crucial as unaudited code may contain critical vulnerabilities leading to massive fund theft, as seen in historical exploits.

Phishing attacks use deceptive websites, emails, or messages to trick you into revealing sensitive information.

• Always manually verify website URLs and browser for the correct domain (e.g., app.uniswap.org).
• Be wary of unsolicited DMs offering support or 'token giveaways' on social media.
• Use a password manager to avoid entering credentials on fake sites.
• This defense matters because social engineering is the most common attack vector, bypassing even the strongest technical security.

Transaction simulation involves previewing the exact outcome of a transaction before signing and paying gas fees.

• Use wallet features or tools like Revoke.cash or Fire to simulate and understand token approvals and contract interactions.
• Set custom gas limits to prevent 'gas griefing' attacks that drain wallets via infinite loops.
• Always review the full transaction details, not just the summary, in your wallet pop-up.
• This practice prevents signing malicious transactions that could drain your wallet or lock your funds.

Portfolio diversification in DeFi means spreading assets across different protocols, chains, and asset types to mitigate risk.

• Avoid concentrating all funds in a single yield farm or new, untested protocol.
• Utilize different wallet addresses for different risk-level activities (e.g., one for holding, one for experimenting).
• Regularly harvest yields and move profits to more secure vaults or stablecoins.
• This is vital because any single protocol can fail or be exploited; diversification limits your exposure to any one point of failure.

Security vigilance is an ongoing commitment to staying informed about the latest threats and best practices in the rapidly evolving DeFi landscape.

• Follow reputable security researchers and news sources on Twitter/X and Discord for real-time alerts.
• Regularly review and revoke unnecessary token approvals using tools like Revoke.cash.
• Keep your wallet software and browser extensions updated to the latest versions.
• This principle matters because security is not a one-time setup but a continuous process of adapting to new attack methods.

Self-custody is fundamental but risky if mishandled. Your private keys are the ultimate access to your funds, and losing them means permanent loss.

• Store keys offline on hardware wallets like Ledger or Trezor, never in cloud storage.
• Use a cryptographically secure seed phrase written on steel plates, not digitally.
• Never share keys or enter them on websites, as legitimate DeFi platforms never ask for them.

This matters because it prevents remote hacking and ensures you are the sole controller of your assets, mitigating exchange failure risks.

On-chain verification involves manually checking every transaction detail before signing. Smart contracts can contain malicious code designed to drain wallets.

• Always verify the contract address on a block explorer like Etherscan, not just the token name.
• Check for unexpected token approvals and revoke unnecessary ones regularly using tools like Revoke.cash.
• Use a test transaction with a small amount first for new protocols.

This practice prevents signing a malicious transaction that grants unlimited spending access to a scammer's contract.

Social engineering attacks trick users into revealing sensitive information. Phishing sites mimic legitimate platforms like Uniswap or MetaMask to steal seed phrases.

• Bookmark official DApp URLs and never click links from emails, Discord, or Twitter DMs.
• Enable transaction simulation in wallets like Rabby to preview outcomes.
• Verify all communications through official channels; admins will never DM you first.

This is critical as most asset losses stem from user error, not protocol hacks, making vigilance your first line of defense.

Endpoint security protects the device where you access your wallet. Malware can log keystrokes or screen-record your seed phrase entry.

• Use a dedicated, clean device for DeFi activities, separate from general web browsing.
• Install reputable anti-virus software and keep all systems updated.
• Consider using a browser wallet extension in a separate, dedicated browser profile.
• Never install unauthorized browser extensions, as they can read all your data.

This layer of security prevents common malware attacks that compromise even the most careful users.

Multi-sig wallets require multiple private key signatures to authorize a transaction, distributing trust and control. This is crucial for teams and large individual holdings.

• Set up a 2-of-3 or 3-of-5 configuration using a service like Safe (formerly Gnosis Safe).
• Store signer keys in geographically separate, secure locations.
• Use for treasury management, DAO operations, or personal high-value accounts.

This matters because it eliminates single points of failure, requiring collusion or multiple compromises for a theft to occur, dramatically increasing security.

Proactive maintenance involves routinely reviewing and updating your security setup. Threats evolve, and old practices become obsolete.

• Audit your wallet activity monthly to check for strange approvals or interactions.
• Update wallet software and browser extensions immediately when patches are released.
• Follow security news on platforms like DeFi Safety to learn about new scam vectors.
• Periodically rotate or update backup methods for your recovery phrase.

This continuous process ensures your defenses adapt to new threats, keeping your asset protection strategy robust over time.