Chapter 4 of 14 · 1 min read
Crypto wallets
If you're serious about cryptocurrency, you need a hardware wallet.
If you're serious about building wealth with crypto, one thing is crystal clear: don't leave your assets sitting on an exchange. Exchanges can be hacked, freeze withdrawals or go bankrupt, as FTX customers learned in 2022.
To truly protect your crypto, take control of your own keys. There are two main types of wallets:
- Hot wallets (software): apps on your phone or computer. Convenient for small amounts and everyday use, but connected to the internet.
- Cold wallets (hardware): small devices that keep your keys offline. The safest option for long-term savings.
Always remember the golden rule: "Not your keys, not your crypto!"
Hardware wallets I recommend
- Ledger: my top pick. Supports Bitcoin and thousands of other assets, with an easy companion app.
- Trezor: a pioneer in hardware wallets, with open-source firmware.
- Blockstream Jade: a Bitcoin-only device from the team at Blockstream.
- Tangem: a card-style wallet that works by tapping your phone.
Learn to use them
Watch these short tutorials before you move real money:
Protect your recovery phrase
When you set up a wallet, it gives you a recovery (seed) phrase of 12 or 24 words. Anyone with those words can take your crypto.
- Write it down on paper or metal. Never store it in a photo, email or cloud note.
- Never type it into a website, and never share it, not even with "support".
- Keep it somewhere safe from fire and water, and consider a backup in a second location.
Scammers send fake emails pretending to be wallet companies. No real company will ever ask for your recovery phrase.
Securing your assets is non-negotiable, and understanding wallets is your ticket to the big leagues.