Wallet Security Fundamentals | Security & Best Practices

At a Glance

Your wallet is only as safe as your key management. Learn wallet types, seed phrase hygiene, and daily habits that prevent most losses.

Hot vs ColdSeed SecurityApprovalsPhishing Defense

Who Is This For?

•Anyone storing crypto, NFTs, or using dApps
•New users setting up their first wallet

Learning Objectives

01Differentiate hot vs cold wallets
02Securely store and back up seed phrases
03Apply daily security best practices

🚨 Security is not optional. In crypto, there's no bank to call. If keys are compromised, funds are gone—permanently.

Section 1

Wallet Types

Different wallets offer different trade-offs between security and convenience. Choose based on your use case.

Wallet Type Explorer

🔥

Hot Wallet

Browser & Mobile Wallets

Private keys stored on your internet-connected device. Convenient for daily transactions.

Examples: MetaMask, Phantom, Rabby, Coinbase Wallet, Trust Wallet

🛡️ Security2/5

⚡ Convenience5/5

✅ Best for: Daily transactions, dApp interactions, small amounts

❌ Not for: Long-term savings, large holdings

⚠️ Risks

•Malware can extract keys

•Phishing sites can trick you

•Device compromise = total loss

💡 Tips

•Only keep funds you actively need

•Use separate browser profile

•Review approvals regularly

Section 2

Seed Phrase Hygiene

🚨 The #1 Rule

NEVER share your seed phrase with anyone, for any reason, ever.

No legitimate service will ever ask for your seed phrase. Anyone who asks is trying to steal your funds.

Seed Storage Test

Which of these are safe ways to store your seed phrase? Check all that apply:

Section 3

Daily Ops Checklist

Approval Scanner Training

Practice reading transaction approvals. Spot the dangerous ones:

Uniswap: Approve USDC for Swap

⚠️ Caution

Contract: 0x68b3465...Uniswap V3 Router
Permission: Allow Uniswap to spend your USDC
Amount: Unlimited

Legitimate Uniswap, BUT requesting unlimited allowance. Better: approve only exact amount needed.

Action: Set custom limit. Revoke after swap.

1 / 4

Safe Transaction Checklist

📋Copy the Address

Always copy full address from recipient. Never type manually.

💡 Use QR codes when available.

Phishing Detector Training

Is this a scam or legitimate? Test your instincts:

DMDiscord DM from "ModBot_Official"

“"You've been selected for an exclusive airdrop! Connect wallet at magic-airdrop-claim.xyz to claim 5,000 tokens!"”

1 / 4

Daily Security Habits

How many do you practice consistently?

🔖Access crypto sites via bookmarks, never search

✅Verify contract addresses before interacting

🧪Send test transactions before large transfers

🔍Double-check pasted addresses

🔐2FA on all exchanges (authenticator, not SMS)

📶Never sign transactions on public WiFi

🧹Review/revoke unused approvals monthly

🏦Large holdings on hardware wallet

Security Score0/8

🚨 Significant gaps. Implement these before your next transaction.

Watch Out

Common Mistakes & Gotchas

These mistakes cost people their funds every day. Learn them now.

📸

I stored my seed phrase as a screenshot — it's convenient!

Phone photos sync to cloud. If compromised, hackers get your seed. Write on paper/metal. Store offline.

💰

I keep $50K in MetaMask for frequent trading

Hot wallets are like cash — fine for daily spending, not savings. Move bulk to hardware wallet.

✍️

A popup asked for 'setApprovalForAll' on a site from Discord

setApprovalForAll = permission to move ALL your NFTs. #1 drainer method. Never approve for unverified contracts.

🖥️

I shared my screen while signing a transaction on a support call

Screen sharing exposes wallet contents and potentially keys. Never share screen with wallet open.

🛡️ Golden Rule: In crypto, you are your own bank. No fraud department, no chargebacks. Every security shortcut is a potential total loss.

Test Yourself

Knowledge Check

Let's see how well you understood the material. Answer all 5 questions.