According to @phantom, many crypto scams are not code-based but social engineering, where scammers build trust and then induce victims to click links, share keys, or approve transactions that grant them access. Source: Phantom on X, Sep 24, 2025. This creates direct exposure during link interactions, private key handling, and on-chain approval steps, with potential for wallet access and loss of funds if manipulated. Source: Phantom on X, Sep 24, 2025.

According to @1HowardWu, losing private keys leads to loss of funds in crypto, while stolen identity credentials can expose the holder to liability for malicious actions, highlighting asymmetric operational risk for traders (source: @1HowardWu, Sep 4, 2025). Crypto transactions are final and irreversible, so compromised private keys typically result in permanent loss of control over assets without recourse (source: Ethereum.org documentation on transaction finality; Bitcoin.org Developer Guide on irreversible transactions). Traditional identity systems face high rates of account takeover and fraud that can lead to financial and legal exposure for victims, elevating non-market risk in trading operations (source: U.S. FTC Consumer Sentinel Network Data Book 2023; FBI IC3 2023 Internet Crime Report). To mitigate trading-impacting losses, institutional best practices recommend hardware-backed cold storage, multisig/MPC, and strong identity proofing to remove single points of failure (source: NIST SP 800-57 and SP 800-63 guidance; Fireblocks Security Whitepaper 2023). Security breaches and hacks have historically coincided with short-term volatility spikes and outflows around affected platforms, making key and credential protection a direct trading consideration (source: Chainalysis Crypto Crime Report 2024).

According to @phantom, users should never store seed phrases digitally, specifically avoiding notes apps, screenshots, and cloud storage to prevent exposing their keys (source: @phantom, X, Aug 30, 2025). Because your seed phrase equals your keys, @phantom instructs traders to write the phrase down, store it securely offline, and never share it to retain control of their assets (source: @phantom, X, Aug 30, 2025).

According to BitMEX Research, the team created a Bitcoin (BTC) transaction that embeds an image within deliberately vulnerable private keys, making those keys computable solely from data available on the blockchain and allowing the image to be reconstructed from on-chain information, Source: BitMEX Research on X, Aug 26, 2025 (link in post). According to BitMEX Research, they describe the image as “unstoppable” because its reconstruction relies on private keys that can be derived from the blockchain rather than off-chain storage or standard script fields, Source: BitMEX Research on X, Aug 26, 2025 (link in post). According to BitMEX Research, the post shares the transaction and technical details for verification of the method, Source: BitMEX Research on X, Aug 26, 2025 (link in post).

According to @_RichardTeng, store private keys offline whenever possible for stronger crypto security, source: @_RichardTeng on X, Aug 8, 2025. Never share private keys with anyone, source: @_RichardTeng on X, Aug 8, 2025. You control the keys equals you control the crypto, a self-custody principle relevant to traders managing BTC and ETH, source: @_RichardTeng on X, Aug 8, 2025.

According to Richard Teng, crypto traders should be alert to three major security red flags: pressure to act immediately, promises of guaranteed returns, and any requests for private keys or seed phrases (Source: Richard Teng, Twitter, June 18, 2025). These warning signs are frequently linked to scams targeting digital assets like BTC and ETH. Maintaining control of your private keys is essential for safeguarding your portfolio. Traders are urged to independently verify all opportunities and never share sensitive information, as security lapses can directly lead to asset loss and significant trading setbacks.

According to Phantom, crypto traders should avoid copying/pasting private keys, clicking on random links, or installing untrusted software to enhance security. They recommend updating operating systems and browsers, using password managers like 1Password instead of plaintext storage, and considering hardware wallets for additional security measures.

According to Phantom, Microsoft has identified a new security threat named StilachiRAT, which targets over 20 crypto wallets through Google Chrome browser extensions on PCs. This malware is capable of stealing private keys and credentials by monitoring clipboard and browser-stored data, posing a significant risk to crypto traders and holders.

According to PolynomialFi, a critical reminder for traders is the principle 'Not your keys, not your coins,' highlighting the importance of holding private keys to ensure control over cryptocurrencies.

According to Balaji and Vitalik Buterin, the control and ownership of private keys by individuals are not the default outcomes in the cryptocurrency space. They emphasize the necessity for users to actively strive to maintain control over their private keys to ensure security and autonomy in managing their digital assets.

According to Balaji, the ownership of private keys by individuals is not the default outcome in cryptocurrency management. He stresses the importance of explicitly striving for this to ensure true ownership and control over one's assets.

According to Vitalik Buterin, using ZK-email as the sole guardian should only serve as a fallback for new users in the cryptocurrency space. As users gain more experience, they should transition to using M-of-N security measures. This involves either holding multiple user-controlled private keys or employing multiple institutional guardians through zk-wrappers. Ideally, a combination of both strategies is recommended to enhance security.