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5 Basic Tips for Masternode Enthusiasts to Avoid Funds Getting Stolen

Although the cryptocurrency industry is home to many helpful souls, there are also scammers lurking in the shadows. In more recent weeks, it seems as if criminals are purposefully targeting masternode investors. The following key tips will help users to keep their funds safe from harm at all. A good dose of common sense can also go a long way in this regard.

Never Send Your Wallet.dat File

One of the more common scams involving masternode coins involves “helping those with issues” Some scammers will try to help struggling users by asking for their wallet.dat file. This information contains one’s user wallet address as well as the associated private key. If the file is protected by a password, they won’t be able to abuse this information. Unfortunately, most users never create a password. As such, sending this file over to someone else will almost always result in lost funds.

Don’t Share Your VPS Info

Setting up a masternode usually involves using a VPS to keep the node online on a 24/7 basis. Sharing the VPS information with users should in theory, not result in stolen funds. However, a hacker can still hijack this information by inserting their own genkey and collecting a few rewards on behalf of unsuspecting users. Although this is not a common occurrence, there is no reason any third party should ever need to access your masternode’s VPS information.

Remote Help Programs are a No-go

Users who struggle with their masternode setup may also receive offers from others to help them by remotely taking control over their computer. This is, once again, an approach which needs to be avoided at all costs. When a criminal remotely connects to your computer, all kinds of harm can be done. Stealing the wallet.dat file is just one of the many possible outcomes. Simply avoid dealing with tools like these, as every potential can be resolved through regular chat sessions.

Beware of Impersonators on Discord

More and more masternode-capable currencies rely on Discord for all communication. Unfortunately, it is relatively easy to create a duplicate user name which resembles that of a known developer or community manager. Avoiding any contact with unknown or untrusted users is mandatory, as all discussions should be kept in public chat rooms for everyone to see.

Avoid Dodgy Websites

Although this applies to cryptocurrency in general never visit suspicious websites. This is an all too common practice in this industry and one that spills over into masternode coins as well. Especially when it comes to downloading wallets, never rely on the links provided on Discord or social media. Look up the original announcement thread on Bitcointalk, as that will always contain the correct information.


Disclaimer: All information provided in this article is for educational and entertainment purposes only. MNMMG Does not offer investment advice and is not responsible for any financial losses sustained by its readers.

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