In crypto, every user or holder is their own bank. Though this means that users have total control and freedom over how they use their assets, they are also responsible for its security. Coupled with the fact that the general public does not have strong cyber hygiene, this results in a vulnerability that hackers are more than willing to exploit. We have seen this ring true, especially on NFT collections such as Bored Ape Yacht Club. Even more sophisticated investors like Kevin Rose were successfully phished.
So how do users protect themselves, and what are some best practices when handling crypto?
The first step to securing crypto assets is to use a hardware wallet instead of desktop or mobile wallet. Hardware wallets ensure that the ability to sign and approve transactions is fully isolated in a separate physical device, making it harder for a hacker to access potential victims’ crypto assets.
Before you sign a transaction, your private key is used to decrypt the transaction data encrypted by your public key. The private key is then used to sign and encrypt the transaction, which is verified by miners or validators by using your public key to decrypt it. These keys are generated by your seed phrase, which is stored offline on the Ledger.
Think of your private and public keys like two secret agents that made up their own communication code. Only they can encode and decode their messages to each other.
To further enhance the security of your seed phrase, Ledgers are protected by Secure Element Chips, which ensures the seed phrase cannot be physically compromised when stolen. Ledger’s software also ensures transactions are signed within the device itself, making it tamper-proof from any third-party applications.
Yes. It is recommended that anyone holding significant amounts in OUSD use a Ledger or hardware wallet. Basic functions such as sending, receiving, and earning yield on OUSD are enabled in the native Ledger Live app.
If you would like to purchase OUSD via the OUSD application or decentralized exchanges such as Curve and Uniswap, you would have to connect your Ledger to Metamask first.
Please note that you do not key in your Ledger’s seed phrase into Metamask or any other sites. Your seed phrase should never be used outside of the Ledger.
Securing your private keys through an isolated setup is the most crucial step. However, proper cyber hygiene should still be maintained at all times. Malware, third party applications, or even phishing websites may trick users into signing malicious transactions. Always check the website you are doing transactions on and avoid downloading untrusted files.
I am unable to see transactions on my Ledger when using Metamask
Blind signing is usually required when interacting with smart contracts. Please enable it by following Ledger’s tutorial.
Can I buy OUSD on a centralized exchange and send it to my wallet?
Yes. OUSD is available on cryptocurrency exchanges Kucoin and Gate. You can withdraw OUSD to your wallet after purchasing it on those platforms.
How does OUSD earn yield?
OUSD earns yield by deploying stablecoins into strategies involving blue-chip DeFi protocols such as Aave, Compound, Curve, and Convex. These strategies are carefully and rigorously reviewed and audited by in-house engineers and external auditing firms. All strategies are market neutral, and do not take speculative or directional risks.
