SIGN

When dealing with cryptocurrencies like

When it comes to Bitcoin or Ethereum, it is important to understand both the technical fundamentals and the financial risks. Here are the key points you should know:

• Technology & Decentralization:

  • Cryptocurrencies are based on blockchain technology, a decentralized network that securely stores transactions in data blocks.

  • They operate independently of central banks or governments.

• Security & Custody:

  • Your digital assets are in a wallet. Protect your access credentials (Private Keys) very well, as there is often no recovery option in case of loss.

  • Do not use wallets on your smartphone or PC for large amounts, but secure "Cold Wallets" (offline storage).

  • Regularly create backups of your wallet.

• Risks & Volatility:

  • Cryptocurrencies are highly speculative. Price fluctuations can be extreme, which means both high profit opportunities and the risk of total loss.

  • Beginners should focus more on established currencies like Bitcoin (BTC) or Ethereum (ETH), as these have a higher market capitalization and stability than unknown "altcoins."

• Trading & Platforms:

  • Purchases are made through cryptocurrency exchanges like Coinbase, Binance, or Bitpanda.

  • Alternatively, brokers like Trade Republic or Swissquote also offer trading in cryptocurrencies.

• Legal & Taxes:

  • Profits from cryptocurrency transactions are generally subject to tax and must be declared in your tax return.

  • The tax office can learn about your profits through blockchain analysis or inquiries to exchanges.

    Julius Baer +13

Do you already have a specific wallet in mind or do you want to know how to securely buy your first coins?

The "signing" (or

Signing is one of the most critical moments in dealing with cryptocurrencies. It is your digital signature, which irrevocably authorizes an action.

Here is the most important thing you need to know about it:

1. What happens when signing?

When you click "Sign" or "Confirm" in your wallet, the software uses your private key to create a mathematical proof.

SettleMint +1

• The proof: It shows the network that you are the rightful owner of the coins without having to disclose your secret private key.

• The security: A signature is only valid for a specific message or transaction. It cannot be reused for another transfer.

2. Signing transaction vs. message

There are two main types of signing:

• On-Chain (transaction): You authorize the sending of values (e.g., send 0.1 BTC). This is stored on the blockchain and incurs network fees ("Gas").

• Off-Chain (message/login): You sign a text to prove your identity with an app or to log in. This does not happen on the blockchain and usually incurs no fees.

  Binance +2

3. The biggest danger: Blind Signing

Many users sign requests from websites without being able to read them (often just a long code of numbers and letters).

• The risk: Fraudsters can deceive you with a harmless message that is actually an "Approval" function. This gives the attacker permission to withdraw your entire balance from your wallet.

• The solution: Use hardware wallets like Ledger or Trezor that support "Clear Signing." This will display in clear text on the secure device screen what you are signing (e.g., "Send 5 ETH to address XY").

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Rule of thumb for security

Never sign a request if you do not understand 100% what it does. Once signed, a transaction on the blockchain cannot be undone.

21bitcoin +1

Have you received a specific request in your wallet that you are unsure whether to sign?

What's a Wallet Confirmation Message? - OneKey

OneKey

Transaction Signer - SettleMint Console

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Web3 Wallet Security: The Risks of Signing Blockchain Messages

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