#10 Avoiding Common Pitfalls

Learn the practical steps every user should take to stay safe in DeFi, from using non-custodial wallets and protecting your seed phrase to understanding protocol fees before you transact.

PREV NEXT

Key Terms From This Episode

Custodial Wallet:

A cryptocurrency wallet where a third party (like an exchange) controls the private keys. NOT recommended for use with Liquid Loans or DeFi in general.

Not Your Keys, Not Your Coins:

A fundamental principle in cryptocurrency emphasizing that if you don't control the private keys to your wallet, you don't truly own the crypto stored there.

Private Key:

A secret cryptographic code that gives you access to your cryptocurrency. Never share your private key with anyone, as anyone with access to it can control your funds.

Recovery Seed Phrase:

A series of words (usually 12 or 24) that serves as a backup for your cryptocurrency wallet. This phrase can restore access to your funds if you lose your device or forget your password. Store it securely offline.

The LL Librarian

Your Genius Liquid Loans Knowledge Assistant