How do I safely store and use my IDON Tokens?
The following suggestions not only relate to safely storing and using IDON Tokens, but also to cryptocurrency in general.
While the information below will likely be common knowledge to individuals who have previously bought and sold cryptocurrencies, we realize that for some IDON Token Holders, this will be the first time they have owned cryptocurrency and wanted to provide the resources below.
In addition to the recommendations below that relate directly to cryptocurrency tokens, coins, wallets, etc, we highly recommend you to be aware of online risks in general and upgrade your security provisions to protect your digital life:
If at any time you have an account security concern or question, please do not hesitate to contact Idoneus Support.
1. Selecting a secure digital currency wallet(s) to store your Tokens.
- Level 1: Mobile wallet.
Mobile wallets are the easiest to use, especially for those that are new to cryptocurrency. While they are relatively safe, we recommend not to hold large amounts of tokens on a mobile wallet.
- Level 1: Mobile wallet.
- Level 2: Hardware wallet.
For those tokens that you have not placed on an exchange to sell, or are about to use on the Idoneus Platform, it is suggested that you keep your IDON Tokens in ‘cold storage’ on a hardware wallet. Cold storage is simply a way to hold your tokens offline and is the most secure way to hold any cryptocurrency. One can think of a hardware wallet as a secure thumb drive.
- We suggest reviewing the Nano Ledger.
- Buy your hardware wallet directly from the manufacturer (not on eBay or Amazon).
- Level 3: Advanced measures.
- Distribute your holdings across multiple wallets (mobile and/or hardware wallets).
- Use a Multisig wallet, like Gnosis.
- Future solution: custodian cold storage (currently not available yet).
- Additional recommendations:
- Do not store large amounts of IDON on a cryptocurrency exchange. Almost all major hacking incidents have happened on crypto exchanges.
- Don’t broadcast your holdings to the general public.
- Especially don’t tell the world (over social media) about the exchanges where you keep all your crypto.
2. Managing passwords, pincodes, private keys and recovery phrases (also called seed phrases or secret phrases).
- A standard seed phrase is that curious string of 24 words from which you can derive a private key of your digital currency wallet. If someone has your private key, then they can access all of your tokens in your wallet and send them to a wallet that they control. Manage your seed with utmost care:
- Use both analog and digital just in case.
- If you write it down on paper, consider making two copies and storing them in separate locations.
- If you want to level up: store pieces of your seed phrase in separate, safe locations.
- And remember: meticulously record your steps, so you (or your heirs) can recreate the seed.
- You should never store your seed phrase, pincode or password in an unsecured area on your phone or computer. Examples of unsecured areas are:
- taking a photo of your private key or password and storing the photo on your phone;
- placing this information in a document on your computer, or Google Drive, Dropbox or another cloud-based storage system that lacks the security of a dedicated company which provides password protection services
- in your email
- on your mobile phone.
- General recommendations:
- Use strong passwords. There are good password generators available for free, and all password managers (see point iv. below) have password generators integrated.
- Don’t have the same password or pincode for every account or device.
- Use Two-Factor Authentication (2FA) or a security key like Yubico wherever available.
- Use a password manager like Lastpass or Bitwarden.
- Do not give anyone (that you do not know and trust 100%) your recovery phrase, password or pincode.
3. Safe transfer of IDON Tokens.
- Make small test transactions before sending the full amount. Verify that it was received in good order before you send the next transaction.
- Never manually type out wallet addresses. Copy and paste, and then check again to make sure.
- Scan QR codes.
- Make sure your scan app is secure.
4. Cryptocurrency Exchanges
- In general, you need to be very careful with wallets on an exchange. These are not the same as “normal” Ethereum wallets. An Ethereum wallet on an exchange is really just for depositing Ether (ETH), not any other ERC20 tokens like IDON.
- If you want to transfer IDON to a cryptocurrency exchange to sell them for USD or ETH, this can currently only be done on the CoinLock Platform. If you open an account there, you will get a dedicated IDON deposit wallet address.
- The main point is: never send IDON (or any other ERC20 token) to an Ethereum address on a cryptocurrency exchange. You must have an IDON specific wallet address on the exchange in order to receive them.
- Also, whenever you send IDON to another person, please make 100% sure this is not an exchange wallet, but an actual ERC20 wallet address like on Coinbase Wallet, Trust Wallet, MetaMask, MyEtherWallet, Ledger Nano, etc. And always start off with sending a very small amount in order to test it out.
Pro Tips: If you want to dive deep into this topic and take it to the next level, please have a look at this in-depth resource: https://silentcicero.gitbooks.io/pro-tips-for-ethereum-wallet-management/content/