Wallets
Last reviewed November 1, 2026
Strictly speaking, coins never sit in a wallet; they live on the blockchain. The wallet holds the keys, and whoever holds the keys holds the coins.
The key question for any wallet is who controls the private key. If it's you, that's self-custody. If it's an exchange, you're trusting that company. Hence the saying: not your keys, not your coins.
Both can make sense. For small sums you trade often, a regulated exchange may be fine. For larger amounts held for years, take custody yourself.
Hardware wallets
A small device that keeps the private key offline. Every transaction is confirmed on the device itself, so malware on your computer cannot reach the key. Buy only from the manufacturer or an authorised reseller, never second-hand, and never use a device that arrives "already set up".
Software wallets
Phone apps and browser extensions. They are free and handy for DeFi, but only as secure as the device they run on. Fine for everyday amounts, not for savings. Download only from the official site; fake wallet apps turn up in app stores regularly.
Leaving coins on an exchange
Coins left on an exchange are an IOU from that company. FTX's collapse in November 2022 showed what happens when a platform spends customer funds. Check whether your exchange segregates client assets and publishes proof of reserves, and remember neither is a guarantee.
Storing your seed phrase
Write it on paper or stamp it into metal and keep it somewhere safe. No photos, no cloud storage, no notes app, no password manager that syncs online. Anyone who asks for it, whether "support", an airdrop or a "wallet verification", is a scammer.