Should I keep my seed phrase online or split it up?

Never store your seed phrase digitally or type it into any website. Keep it offline on a physical material like paper or steel, and do not split it, as partial pieces can be calculated by attackers.

When should I use a hot wallet versus a cold wallet?

Use a hot wallet for small amounts needed for active trading and decentralized finance. Use a cold hardware wallet for long-term savings and significant holdings to keep your private keys offline.

What is a decoy wallet and how does it work?

A decoy wallet uses an extended passphrase to secure your main funds, while the pin of your hardware wallet or base seed words unlocks a wallet with a small balance, acting as a honeypot to alert you to a compromise.

How do most crypto scams work?

Most crypto losses come from basic mistakes like phishing, fake support, or malicious links. Every scam ultimately tries to trick you into revealing your seed phrase.

How to Secure Your Crypto Wallet and Seed Phrase

To secure your crypto wallets, prioritize hardware wallets for significant holdings and hot wallets only for small, active funds. Never share your seed phrase, and stay vigilant against phishing and scams.

Keep your seed phrase offline and physical. Write it on paper or stamp it onto a steel plate, and never type it into any website or app. Avoid splitting your seed phrase, as someone who obtains partial pieces can easily calculate the rest.

Practice smart security habits by double-checking URLs and transaction addresses. Consider using an extended passphrase to create a decoy wallet with a small amount of funds, which alerts you if your main holdings are compromised.

How to Secure Your Crypto Wallet and Seed Phrase — infographic

To secure your crypto wallets, prioritize hardware wallets for significant holdings, never share your seed phrase, and be vigilant against phishing and scams.

Protect Your Seed Phrase Above All

Keep it offline and physical: Your seed phrase is the key to your crypto; never store it digitally or type it into any website or app. "Write it down on paper, store it somewhere physical and safe, and never type it into any website or app for any reason."

Use durable backups: Consider methods like stamping your seed phrase onto metal to protect against damage. "If you back up your seed phrase onto anything besides a steel plate, you're a moron."

Avoid splitting seeds: While some suggest splitting, others advise against it due to potential vulnerabilities if parts are compromised. "Don't split the seed! Never! If say you split into 3 parts and someone gets 2 out of 3 it's easy to calculate the rest."

Choose the Right Wallet Type

Hardware wallets for long-term storage: For substantial amounts, a hardware wallet (cold wallet) is crucial as it keeps your private keys offline. "If youre all in on self custody, its a must [to] get a hardware wallet."

Hot wallets for small, active funds: Use hot wallets (software wallets like MetaMask or Rabby) only for small amounts needed for active trading or DeFi. "The hot wallet is for active trading and defi, the cold wallet for long-term savings."

Consider advanced cold storage: Solutions like Cypherock X1 use Shamir's Secret Sharing to split your private key, offering redundancy without a single seed phrase vulnerability. "I switched to a Cypherock X1 for long-term holds, and here’s why I think it’s one of the best for 10–15 year storage: No seed phrase at all — It uses Shamir’s Secret Sharing to split your private key into 5 pieces."

Practice Smart Security Habits

Verify transactions and URLs: Always double-check recipient addresses on your hardware wallet's screen and ensure you're on legitimate websites. "Keep things safe means double-checking URLs when using defi, and minimizing smart contract risk when possible."

Be wary of scams: Recognize that most crypto losses stem from basic mistakes like phishing, fake support, or malicious links trying to trick you into revealing your seed phrase. "The common thread is that every single crypto scam eventually tries to get your seed phrase."

Implement a passphrase/decoy wallet: Use an extended passphrase to create a decoy wallet with a small amount of funds, alerting you to a compromise before your main holdings are affected. "Using an extended passphrase can help here because you have a decoy balance secured by the pin of your hardware wallet or the seed words which acts as a honeypot."

Are you considering using a hardware wallet for your crypto?

Best for: Crypto holders who want to protect their assets from online scams and physical damage.