👋 Hi crypto enthusiasts and fellow investors!
Last week I was asked what wallets I use. So this week the focus is on crypto security, especially wallets. The timing couldn't be better either, as last week I attended the Bitcoin Amsterdam conference and Trezor Day. The people behind Trezor are real OGs and developed the first hardware wallet in 2014. It was a pleasure to meet them and so many other crypto creators and educators, especially to see them face to face and have a beer. Trezor also showed us their new products (Trezor Safe 3 and Trezor Keep Metal), as you may have seen on our Instagram.
Therefore let’s talk today about crypto security and what you have to do RIGHT NOW!
Level 0: The Exchange Phase
That's how most of us start. We register with an exchange and buy our first cryptocurrency. But that was only the first step. Now it's time to make sure your cryptocurrency is protected!
If you have an amount on a crypto exchange that you are not willing to lose, move it to a software wallet! I can't stress this enough - please move your money off the exchange. It's an exchange, not meant for storage. There have been hacks and scams in the past, and there will be in the future. Unlike banks where your money is insured at least up to a certain amount - crypto is not insured! Download a free software wallet.
Level 1: Software Wallets - Your First Line of Defense
Simply download a software wallet to your mobile phone or computer. It's free, easy and a big step forward for your crypto security. From that moment on, you have self-custody, which means you and only you can control your cryptocurrency!
The software wallets I use most often are SafePal (on my phone) and MetaMask on my desktop. You install them, get a private key so you and only you can access it, and a public address where you can send your cryptocurrency.
Level 2: Hardware Wallets - Fortifying Your Assets
Take your security seriously. Software wallets are much more easily hacked because any application running on a device connected to the internet can be hacked. Additionally you are likely to try new things with a software wallet and connect it to different services. Therefore, this wallet is at a higher risk.
Take the majority of your crypto and move it to a hardware wallet!
If you are looking for a good hardware wallet, I would suggest looking at Trezor's new Trezor Safe 3 or a cheaper alternative like the SafePal S1. I really like Trezor's product as well as their team and they are true OGs (they developed the first hardware wallet back in 2014).
Level 3: The Wallet Ecosystem - Master Level Security
The next steps are the final frontier.
Diversify your assets, don't keep too much on one wallet. Prepare for potential future government controls, CBDC’s and make sure to keep your KYC and non-KYC crypto separate.
Develop a system that helps you keep track of all the cryptocurrencies you own and, most importantly, where you have them stored.
Think about your future and how you can pass on your crypto wealth to your family. If you are the only one who knows how to find your private keys, your wealth will die with you. Think about how you can pass on your keys to your loved ones - because every day could be our last.
Read more about it here:
Summary
I hope you take these things seriously. If you are unsure about sending crypto from the exchange to your own wallet, I have put together a checklist for you.
Otherwise, just reply to this email or join CryptoExplorer Pro to get all your questions answered🚀
There is no better quote than this to end this newsletter:
Not your keys - not your coins.
So I can only recommend everyone to focus on their crypto security. Download a software wallet and once you have more investments, buy a hardware wallet.
Wishing you a fantastic weekend!
Cheers & stay safe,
Stefan
Co-Founder of CryptoExplorer
P.S. Dive deeper into the world of crypto security with our video courses at CryptoExplorer Pro, tailored to guide both novices and veterans through the intricate labyrinths of wallets, keys, and beyond.
Great topic!
"Think about your future and how you can pass on your crypto wealth to your family." not many think about it.
There is one project (Webacy) that is building a tool for that called "Crypto Will", where basically you setup beneficiaries wallets and if you don't login in your wallet in X-months, the smart contract considers you dead and transfer the select assets to the next in line haha it is quite interesting
currently level 1, soon level 2!