Wallet Safety 101

Wallet Safety 101: Seed Phrases, Hardware Wallets & Common Scams

Protect your crypto by mastering self-custody, spotting scams, and using hardware wallets effectively.

TL;DR:
Your crypto is only as safe as your private keys. Store seed phrases offline, use hardware wallets for meaningful funds,
and treat every transaction approval as irreversible. Phishing and “drainers” are the #1 threat.

1) Why wallet safety matters

Unlike banks, there’s no “forgot password” or chargeback in crypto. If your private key or seed phrase is exposed,
your funds can be drained instantly, without recourse.
Blockchain transactions are final, public, and permanent.

2) Seed phrase protection

  • Write your seed phrase on paper or metal  never store it in cloud notes, email, or phone gallery.
  • Make at least two copies and store them in separate, secure locations (safe, bank deposit box).
  • Never type your seed phrase into a website. Only input into your wallet app/device when restoring.
  • Consider metal backup kits to withstand fire/flood.
Pro tip: Test your backup by restoring it on an offline wallet before sending significant funds.

3) Hardware wallets

A hardware wallet stores your private keys offline and signs transactions within the device. Even if your computer is
compromised, the attacker can’t extract your keys.

  • Popular brands: Ledger,
    Trezor,
    GridPlus.
  • Always buy directly from the manufacturer, avoid resellers.
  • Verify firmware authenticity before setup.
  • Always confirm transaction details on the device screen.

4) Common crypto scams

  • Phishing websites: Fake wallet sites that look identical to the original. Always check the URL.
  • Fake support: Impersonators asking for your seed. No legit support will ever ask for it.
  • Airdrop scams: Tokens sent to lure you into interacting with malicious contracts.
  • Malicious browser extensions: Plugins that steal private keys or intercept transactions.

5) Dangerous token approvals

On Ethereum and similar networks, granting an unlimited token allowance means a contract can spend your tokens anytime.
If that contract is compromised, your funds can vanish.

  • Review approvals regularly: Revoke.cash
  • Grant only the amount you intend to use, not unlimited.

6) Best practices

  • Use separate wallets for DeFi experimentation and long-term storage.
  • Enable 2FA on any account connected to your crypto activities.
  • Keep wallet software/firmware up-to-date.
  • Disable auto-approve settings in wallet extensions.
  • Educate yourself before interacting with any new dApp.

Quick check

  1. What’s the safest way to store a seed phrase?
  2. Why should you avoid buying hardware wallets from marketplaces like Amazon?
  3. What’s the risk of granting unlimited token allowances?
Show answers
  • Offline, on paper or metal, stored securely in multiple locations.
  • They could be tampered with, potentially leaking your seed.
  • A compromised contract could drain your tokens without further consent.

Go deeper (free resources)

Next, we’ll explore token standards — ERC-20, ERC-721, ERC-1155 — and when to use each.


Next: Token Standards →