Did you know that over $3.8 billion in crypto was stolen in 2022 alone? But here’s the good news – your crypto can be safe if you follow these simple steps.
There are three main ways to store your crypto, ranging from convenient to ultra-secure:
First, Exchange Wallets. These are like keeping money in a bank – convenient for trading, but you don’t control the keys. Popular exchanges like Binance or Coinbase fall into this category. But here’s the warning: exchanges can be hacked, go bankrupt, or restrict access to your funds. Remember FTX? Countless people lost everything when it collapsed. Only keep small amounts here that you actively trade, and always withdraw your long-term holdings to a wallet you control.
Second, Software Wallets. Apps like MetaMask or Trust Wallet give you full control through a recovery phrase. They’re perfect for regular transactions, but remember – your security is only as strong as your device’s security.
Third, Hardware Wallets, also known as cold wallets. These are like a digital safe. They keep your crypto completely offline and secure, away from internet threats. Think of hot wallets (exchanges and software) as your spending money, and cold storage as your savings account – perfect for long-term storage of larger amounts.
No matter which method you choose, follow these crucial rules:
Never share your private keys or recovery phrase
Use strong, unique passwords
Enable two-factor authentication
Back up your wallet information securely
Remember: Not your keys, not your crypto!
