One of the most important aspects of owning cryptocurrency is storage. Unlike money in a bank, you are solely responsible for the security of your crypto assets.
Hot Wallets vs. Cold Wallets
Hot Wallets (Online)
These are connected to the internet (e.g., MetaMask, Exchange Wallets). They are convenient for trading but more vulnerable to hacks.
Cold Wallets (Offline)
These are physical devices (e.g., Ledger, Trezor) that store your private keys offline. They are the gold standard for security.
Best Practices
- Never share your seed phrase. This is the master key to your wallet.
- Use 2FA. Enable Two-Factor Authentication on all exchange accounts.
- Double-check addresses. Malware can swap clipboard addresses. Always verify before sending.