In the world of cryptocurrency, you are your own bank. This gives you total freedom, but it also means you bear total responsibility. If you lose your password, there is no “Forgot Password” button.
Here is the essential guide to keeping your digital wealth safe.
1. Hot Wallet vs. Cold Wallet
- Hot Wallets (Metamask, Phantom): These are connected to the internet. They are great for quick trading and connecting to apps, but they are vulnerable to hacks. Keep only “spending money” here.
- Cold Wallets (Ledger, Trezor): These are physical devices that keep your keys offline. This is where your long-term hold portfolio belongs. Even if your computer has a virus, your cold wallet funds are safe.
2. The Seed Phrase Rule When you create a wallet, you get a 12 or 24-word phrase.
- NEVER type this into a computer or phone note.
- NEVER take a screenshot of it.
- WRITE IT DOWN on paper (or steel) and hide it in a secure location.
- NO SUPPORT AGENT will ever ask for this phrase. If they do, it is a scam.
3. Watch Out for Phishing 90% of hacks happen because a user clicked a bad link. Always bookmark your favorite exchanges and DeFi sites. Verify the URL carefully. If a deal looks too good to be true (e.g., “Send 1 ETH, get 2 ETH back”), it is a lie.
Conclusion Security is not exciting, but it is necessary. Taking 10 minutes to set up a cold wallet today can save you from losing your life savings tomorrow. Stay safe out there.
