Wallet Security 101

A hot wallet is connected to the internet — apps like MetaMask, Trust Wallet, or Phantom. Convenient for daily use, like cash in your pocket. A cold wallet is a physical device that stores your crypto offline — like a safe at home. For everyday transactions: hot wallet. For savings and long-term holdings: cold wallet. Many people use both. Always buy hardware wallets directly from the manufacturer — never secondhand.

When you create a wallet, you receive a seed phrase — 12 or 24 random words. This is the master key to your crypto. Rules: Write it on paper or engrave on metal. Never store digitally. Store in a secure physical location. Never enter it on any website. Make a backup in a separate location. If someone has your seed phrase, they have your crypto. If you lose it and your device breaks, your crypto is gone forever. There is no "forgot password" option.

For exchange accounts, enable every security feature: 2FA: Use an authenticator app (not SMS — SIM swapping bypasses SMS). Whitelist withdrawal addresses so even a compromised account can't send crypto to unknown wallets. Use unique strong passwords via a password manager. Also secure the email linked to your exchange — email compromise = account compromise.

If your wallet is compromised: Act immediately. Create a new wallet with a fresh seed phrase. Transfer remaining funds. Revoke all token approvals. Never use the compromised wallet again. If your exchange account is compromised: Contact their security team immediately. Change password and 2FA. Check for unauthorized withdrawals. File reports. Prevention is always better than response. The 10 minutes you spend on security today could save you from devastating loss.