Article 6.2. Crypto Wallets & Security: How to Protect Your Assets
So, you’ve got some Bitcoin or Ethereum. Great. But where do you keep it?
You wouldn’t leave a stack of cash lying on the street, right? The same applies to crypto. Keeping your funds secure is your responsibility—there’s no customer support line in crypto if you get hacked or lose access.
That’s why understanding wallets, private keys, and security best practices is crucial. Let’s break it down.
What is a Crypto Wallet?
A crypto wallet stores your private keys, which are like the password to your money. Whoever controls the private key controls the crypto.
There are two main types of wallets:
Hot wallets (connected to the internet)
Cold wallets (offline and more secure)
Each comes with its own trade-offs between convenience and security.
Hot Wallets: Easy to Use, But More Vulnerable
Hot wallets are software wallets that stay connected to the internet. They’re perfect for frequent trading and quick access, but they’re also more vulnerable to hacking.
Popular Hot Wallets:
MetaMask – The go-to Ethereum wallet for interacting with DeFi and NFTs.
Trust Wallet – A mobile wallet supporting multiple blockchains.
Rabby Wallet – A newer alternative to MetaMask, focused on user security.
Phantom – The top wallet for Solana users.
Pros of Hot Wallets:
✔️ Fast and convenient for everyday use.
✔️ Free to set up and easy to install as a browser extension or mobile app.
✔️ Supports DeFi, NFTs, and staking.
Cons of Hot Wallets:
❌ Always online, making them a bigger target for hackers.
❌ If your device is compromised, your funds can be stolen.
❌ Phishing risks—scammers often target MetaMask users.
Cold Wallets: Maximum Security for Long-Term Storage
Cold wallets keep your private keys completely offline, making them much harder to hack. They’re best for long-term holdings (HODLing) and large amounts of crypto.
Popular Cold Wallets:
Ledger Nano X / S Plus – One of the most trusted hardware wallets.
Trezor Model T / One – Another solid option for cold storage.
Keystone – A fully air-gapped wallet with no direct internet connection.
Pros of Cold Wallets:
✔️ Offline = virtually impossible to hack.
✔️ Best for storing large amounts of crypto.
✔️ Immune to phishing attacks and malware.
Cons of Cold Wallets:
❌ Not as convenient for daily transactions.
❌ If you lose it (and your recovery phrase), your funds are gone.
❌ Costs money (usually $50–$150, depending on the model).
Understanding Private Keys & Seed Phrases
When you create a wallet, you’ll receive a 12- or 24-word recovery phrase (also called a seed phrase). This phrase is the master key to your wallet.
Golden Rule of Crypto Security:
🔥 If someone has your seed phrase, they have your money. 🔥
Here’s what you should never do:
Never store your seed phrase online. Don’t save it in Google Drive, Dropbox, or your notes app.
Never take a screenshot of it. Hackers love scanning devices for saved phrases.
Never share it with anyone. No legit project or wallet provider will ask for your seed phrase.
How to Store Your Seed Phrase Safely:
✅ Write it down on paper and keep it somewhere safe.
✅ Use metal backups like a Cryptosteel Capsule to protect against fire or water damage.
✅ Make multiple copies and store them in different locations.
Your wallet can be recovered on any device as long as you have your seed phrase. Lose the phrase? Your funds are gone forever.
Avoiding Common Crypto Scams & Phishing Attacks
Crypto is like the Wild West—full of opportunity, but also full of scammers looking to take advantage of newbies.
The Most Common Crypto Scams
1️⃣ Phishing Websites & Fake Wallets
Scammers create fake MetaMask or Ledger websites to steal your login info.
Always double-check the URL and only download wallets from official sources.
2️⃣ Fake Airdrops & Giveaways
If someone on Twitter or Telegram promises you “free ETH,” it’s a scam.
Never connect your wallet to unknown sites just because they promise rewards.
3️⃣ Dusting Attacks
You see random small amounts of tokens appearing in your wallet?
Scammers use these to trick you into interacting with malicious contracts.
Ignore and never trade these unknown tokens.
4️⃣ Rug Pulls & Pump-and-Dumps
A new project promises insane returns, then suddenly vanishes with your money.
Always research projects and check if their smart contracts have been audited.
5️⃣ Fake Customer Support
Scammers impersonate MetaMask, Binance, or Ledger support on Twitter and Telegram.
No official support team will ever DM you first.
Final Thoughts: Keep Your Crypto Safe
The best way to stay safe in crypto? Take full control of your security.
Use cold wallets for long-term storage.
Keep your private keys offline.
Double-check every website and contract before interacting.
Stay skeptical. If something sounds too good to be true, it probably is.
Crypto gives you financial freedom—but that freedom comes with responsibility. There’s no bank to call if you mess up, so take security seriously.