In 2025, the threat of hacks and scams is increasing. Most people do not lose their crypto wallets due to technical issues, but rather because of personal errors. You are in complete control of your money in crypto, and that control brings responsibility for its safety. That freedom, however, is a double-edged sword. There is no support to help you reduce risks, and if there is brunt of the wave comes crashing down, your funds may be wiped out. Learning the different methods to secure crypto is the best way to ensure its safety, and this guide will provide easy ways to maintain your crypto security.
Understanding the Security Risks
Crypto is facing more dangers in 2025. Scammers are using smarter tricks to steal money.
Here are the biggest risks:
Phishing: These are fake websites and messages designed to capture your credentials. A new phishing scam exploited over 30,000 wallets and ran away with $9 million.
Malware: Malware is malicious software that enters secretly your device and steals your cryptocurrencies. One of its variants, StilachiRAT, attacks wallet browser extensions..
Wallet Theft: Other hackers look for security gaps within wallets. Despite having a hardware wallet, one user fell victim to wallet theft and lost $40 million.
It’s now more challenging to detect scams. Some employ AI-generated fake voices and videos. Groups such as North Korea’s Lazarus Group also illegally took out over one and a half billion dollars. To stay protected, you need to follow crypto security practices and be careful.
Choosing the Right Wallet Setup
Picking the right wallet helps you keep your crypto safe. Each type has different uses. Let’s break it down in simple terms.
Hot Wallets
Hot wallets stay online. You can use them for quick trades or daily use. Apps like Trust Wallet and browser add-ons like MetaMask are hot wallets. Most people still use hot wallets because they are fast and simple.
Cold Wallets
Cold wallets are offline. That makes them much safer from online attacks. A hardware wallet, like a Trezor or Tangem, is a good cold wallet. In 2024, a big hack revealed that even some cold wallets can be risky. Hackers from Bybit stole over one and a half billion dollars’ worth of Ethereum. So use cold wallets, but set them up the right way.
Custodial vs. Non-Custodial Wallets
- Custodial wallets are controlled by a company, like an exchange. They keep your keys. You trust them to protect your funds.
- Non-custodial wallets give you full control. You keep your own keys. This means more freedom, but more responsibility too.
Today, non-custodial wallets are easier to use than before. They work more like apps people already know.
Multi-Wallet Strategy
This is one of the best strategies for crypto diversification:
- Keep a hot wallet for small daily purchases.
- Store significant amounts in cold wallets.
- Use custodial wallets for beginners.
- Non-custodial wallets are best for full control.
This is one of the best crypto security practices for 2025. It gives you both safety and flexibility.
Cold Storage: Your First Line of Long-Term Defense
Keeping your cryptocurrency offline is one way to store it securely. This technique is known as cold storage. By being kept offline, the assets are virtually inaccessible to hackers.
What Is Cold Storage and Why Does It Matter
Cold storage refers to methods that keep your cryptocurrency in devices that are not connected to the internet. The main reason for this is to keep your coins safe from online threats like hacking and phishing. If you are planning to hold onto your cryptocurrencies for a long period of time, then cold storage will work for you.
Advantages of Hardware Wallets
Hardware wallets serve as protectors of your cryptocurrency since they are specially made for cold storage. They maintain your private keys offline, thus making them immune to online threats. These wallets generally come with security features such as PIN codes and the ability to take backups. Some can even self-destruct when someone tries to tamper with them. Using a hardware wallet for cold storage is one of the best practices regarding digital crypto security.
Setting Up and Using Cold Storage Safely
Buy from a trusted source: Purchase your hardware wallet directly from the manufacturer to avoid fake devices.
Follow the setup instructions: Make certain that the steps provided for setting up the wallet are followed correctly.
Secure your recovery phrase: It can help you recover your funds when stored in a safe place if the device gets lost.
Keep it offline: Connect the hardware wallet to the internet only when a transaction has to be made.
These steps will help ensure that your crypto is stashed securely and protected from long-term hacking.
Protecting Your Crypto Seed Phrases and Private Keys
If a thief gets your seed phrase, they can make use of your crypto account unrestricted. This is the reason why seed phrases are so important. Best preserved by following the best practices below.
Best Practices for Offline Storage
Use Metal Backups: A growing number of individuals are engraving seed phrases on metal plates like Cryptosteel or Billfodl. Such engravings cannot be damaged by fire, ruined by water, or totally wiped out by physical damage. Hence, these designs last long.
Store in Secure Locations: Avoid accessible places like homes, as they pose higher risks of theft. Only resort to fireproof safe deposits and bank safety boxes that are not easily accessible.
Create Multiple Copies: Having more than one copy in different locations ensures that if one is lost or damaged, you can still recover your funds.
Common Mistakes to Avoid
Storing Digitally: Never save your seed phrase on your phone, computer, or online storage. Digital copies are vulnerable to hacking and malware.
Taking Photos: Avoid taking pictures of your seed phrase, as they can be accessed by unauthorized individuals.
Sharing with Others: Never share your seed phrase with anyone, even family or friends. If someone else knows your seed phrase, they can access your funds.
Additional Security Measures
Use a Hardware Wallet: Hardware wallets such as Ledger and Trezor are considered to be the most secure devices among crypto users because they keep your private keys offline.
Enable Passphrase Protection: Some wallets will allow you to add extra words to your seed phrase. This creates what some people refer to as a “25th word.” This is a great security feature; however, losing that extra word would mean losing your access to your funds as well.
Regularly Verify Backups: You should always make sure your backups are in good condition and can be accessed.
Pro Tip
Among the best crypto security practices is using a hardware wallet for cold storage, storing your seed phrase on a metal backup offline, and never sharing it with anyone.
Securing Your Devices and Network
Your devices and network are key to protecting your crypto. Keeping them secure is simple but crucial. Always update your devices. Updates patch security flaws that hackers could exploit. This includes phones, computers, and routers. Avoid public Wi-Fi, as it’s insecure. If you must use it, always connect through a VPN. A VPN keeps your connection private and secure. Secure your router by changing the default password and enabling WPA3 encryption. Turn off remote access unless necessary to prevent outside control.
Use antivirus software and turn on your device’s firewall to block malicious traffic. Be cautious when browsing and avoid links and downloads from unknown sources. Device hygiene is a core part of the best crypto security practices. Keeping your devices safe is a vital step in protecting your crypto.
Strong Passwords and Two-Factor Authentication (2FA)
Strong passwords and 2FA are essential to protect your crypto.
Password Manager Pros and Cons
A password manager keeps your passwords safe and helps create strong ones for every account. It’s helpful, but if someone gets your master password, they could access everything. So, keep it safe.
2FA: App vs. SMS
2FA adds an extra layer of security. Using an app like Google Authenticator is safer than SMS because SMS can be hacked through SIM-swapping. An app generates codes that change every few seconds, making it harder for hackers to steal.
Platform-Specific Tips
Different platforms need different security settings. Always enable 2FA for exchanges, wallets, and DeFi platforms. This stops hackers from getting into your accounts and stealing your crypto. Choose platforms that offer strong security, like 2FA.
Among the best crypto security practices is enabling 2FA on all your accounts. Using a password manager and 2FA together keeps your crypto safe.
Avoiding Scams, Phishing, and Social Engineering
Scammers use tricks to steal your crypto. It’s important to know how to spot them.
Fake Sites, Impersonators, and Wallet Drainers
Scammers make fake websites that look real to steal your crypto. They may also pretend to be someone you trust. Wallet drainers are apps or links that take your crypto once you connect your wallet.
Red Flags to Look Out For
Too-good-to-be-true offers: If it sounds too good, it probably is.
Urgent messages: Scammers try to rush you into making quick decisions.
Suspicious URLs: Double-check the website address for mistakes or strange characters.
Unsolicited emails or messages: Don’t click on links from unknown people.
How to Verify Legitimacy
To avoid scams, always check the website, email, or social media profile first. Make sure the website is secure (look for “https” and a lock icon). Look for reviews or feedback from other users. If you’re unsure, contact the company directly.
Among the best crypto security practices is being cautious. Always verify things before acting to keep your crypto safe.
Backup Strategies
Backing up your crypto is key to keeping your assets safe. If something happens to your device or wallet, a good backup will help you recover your funds.
Offline Backups (Paper, Metal, Encrypted Drives)
Offline backups, like writing your seed phrase on paper or metal plates, are very secure. Metal is strong and won’t get damaged like paper can. You can also use an encrypted USB drive or external hard drive to store your backup. Just make sure the drive is locked with strong encryption.
Tip: Some hardware wallets let you back up your data to a secure offline location for extra safety.
Why Cloud Storage Is Risky
Cloud storage may be easy to use, but it’s not safe enough for crypto backups. Cloud services can be hacked, and your data could get exposed. Even with encryption, cloud storage is still vulnerable to attacks.
Warning: Recent hacks have shown that cloud providers can be targeted, so it’s better not to store seed phrases or private keys in the cloud.
How to Test Your Backup
It’s important to test your backup to make sure it works. Regularly try to restore your backup and check if you can access your funds. Keep the backup in more than one safe place, so if one gets lost or damaged, you can still access it. You can also add extra protection by using multi-factor authentication (MFA) on devices that store your backups.
Latest Tip: Some users now use “Shamir Backup” on hardware wallets. This splits your backup into parts, and you need a minimum number to recover your data.
Quick Backup Checklist:
Use offline backups (paper, metal, or encrypted drives).
Test your backup regularly to make sure it works.
Avoid cloud storage for your backups.
Store backups in different secure places.
Consider using Shamir Backup for added security.
Among the best crypto security practices is setting up a secure and tested backup strategy. Protect your assets by making sure your backup works and is safely stored.
Routine Security Maintenance & Personal Audits
Crypto security isn’t just about setting up protection once, it’s an ongoing job. Regular checks help you catch problems early and keep your assets safe.
Keep Everything Up to Date
Always update your devices, software, and wallets. New updates fix security holes and keep hackers out. Outdated devices or software make it easier for attackers to get in.
Tip: Set your devices to update automatically. This way, you never miss an important fix.
Do a Regular Security Check (Audit)
A personal security audit means reviewing your crypto practices. Look over your passwords, 2FA, wallets, and backups. Make sure no one else has access to your assets. Audits help you spot weak spots before they become issues.
Tip: Check your security at least once a month, or after making big changes to your setup.
Update Passwords and 2FA
Change your passwords regularly, especially if you think something might be wrong. Also, always use 2FA (Two-Factor Authentication) on platforms that offer it. This extra step adds more protection to your accounts.
Tip: If you’re using a password manager, make sure it’s secure and your master password is strong.
Double-Check Security Settings on Crypto Platforms
Look at your security settings on exchanges and wallets. Set up things like withdrawal whitelists, 2FA, and email alerts. This makes sure your account is extra safe.
Quick Security Checklist:
Regularly update your software and devices.
Do a security audit once a month.
Change passwords regularly and keep them strong.
Turn on 2FA wherever you can.
Review security settings on your platforms.
Routine security checks and audits are crucial for keeping your assets safe. Among the best crypto security practices is staying on top of updates and regularly checking your setup.
Conclusion
Crypto security is up to you. By using best practices like strong passwords, cold storage, and regular updates, you can keep your assets safe. Stay updated, threats change often. Keep learning and adjusting to stay ahead. Feel free to share or download this guide for future use. Among the best crypto security practices is staying alert and proactive