How to store crypto safely

Where you keep your coins matters as much as which coins you buy. There are three common options, from the most convenient to the most secure.

1. On an exchange

Coins bought on an exchange stay in your exchange account until you withdraw them. This is the easiest option for trading, but the exchange holds the keys: if it is hacked, goes bankrupt or freezes your account, you can lose access. Keep only what you actively trade there and turn on two-factor authentication with an authenticator app (not SMS).

2. Software wallet

An app on your phone or computer that holds the keys for you. You control the coins, but the keys live on a device that is connected to the internet, so malware and phishing sites are the main risk.

3. Hardware wallet

A small device that keeps the keys offline and signs every transaction on its own screen, so a compromised computer cannot move your coins. It is the usual choice for long-term savings. The best-known makers are Ledger and Trezor. Buy only from the official store, never second-hand.

Your recovery phrase

• Any wallet you control gives you a recovery (seed) phrase of 12 or 24 words. Whoever has these words has your coins.
• Write it on paper or metal, keep it offline and in a safe place. Never photograph it, store it in the cloud or type it into a website.
• No real support team, exchange or wallet maker will ever ask for it.

Simple rule of thumb

Trading money on an exchange, everyday amounts in a software wallet, savings on a hardware wallet.

This page is for general information and is not financial advice. Some links may be affiliate links; see the terms.