Secure Crypto Storage
The way you store crypto determines whether it's safe or vulnerable. This guide covers storage options from basic to advanced security.
Storage Security Levels
| Method | Security | Convenience | Best For |
|---|---|---|---|
| Exchange | Low-Medium | High | Active trading |
| Hot wallet | Medium | High | Daily use |
| Hardware wallet | High | Medium | Long-term holding |
| Multisig | Very High | Low | Large amounts |
Exchange Storage
Keeping crypto on exchanges:
- Pros - Easy, instant trading, no key management
- Cons - Exchange can be hacked, frozen, or go bankrupt
- Not your keys = not your crypto
Exchange Risks
Mt. Gox, FTX, Celsius, BlockFi - billions lost when exchanges failed. Only keep on exchange what you're actively trading.
Hot Wallet Security
Software wallets on connected devices:
Essential Precautions
- Use strong, unique password
- Enable biometric lock
- Never save seed phrase digitally
- Keep software updated
- Don't click suspicious links
Device Security
- Keep OS updated
- Use antivirus software
- Avoid public WiFi for transactions
- Consider dedicated device for crypto
Hardware Wallet (Cold Storage)
The gold standard for secure storage:
Why Hardware Wallets Work
- Private keys never leave the device
- Transactions signed on secure chip
- Immune to computer malware
- Physical confirmation required
Recommended Hardware Wallets
- Ledger Nano S Plus/X - Most popular, great app
- Trezor Model T/One - Open source, trusted
- Coldcard - Bitcoin-only, maximum security
Investment Protection
A $80 hardware wallet protects unlimited value. If you have more than $1000 in crypto, a hardware wallet should be considered essential.
Seed Phrase Storage
Your seed phrase backup is critical:
Paper Backup
- Write with permanent ink
- Store in fireproof safe
- Consider multiple copies
- Keep in different locations
Metal Backup (Recommended)
- Survives fire and flood
- Products: Cryptosteel, Billfodl
- DIY: Steel washers stamped with letters
Never Store Seed Digitally
No photos, no notes app, no cloud storage, no email. Hackers specifically target these. Your seed phrase must be offline only.
Multisig Wallets
Multiple signatures required for transactions:
- 2-of-3 multisig - Need 2 of 3 keys to spend
- Keys can be distributed geographically
- Protects against single point of failure
- Services: Casa, Unchained Capital
When to Use Multisig
- Very large holdings ($100k+)
- Business treasury management
- Estate planning
Security Checklist
- Hardware wallet for long-term holdings
- Seed phrase stored on metal, in safe
- Geographic backup distribution
- Strong unique passwords everywhere
- 2FA on all exchange accounts
- Regular security audits of approvals
- Withdrawal whitelist enabled
Amount-Based Recommendations
| Portfolio Value | Recommended Storage |
|---|---|
| <$500 | Hot wallet is acceptable |
| $500-$5,000 | Hardware wallet recommended |
| $5,000-$100,000 | Hardware wallet essential |
| >$100,000 | Multisig or multiple hardware wallets |