Safe Storage Strategies | Security & Best Practices

AT A GLANCE

Organizing funds into hot, hardware, and cold storage reduces risk. Design tiers, backups, multi-sig, and inheritance plans.

Storage TiersSeed BackupsMulti-SigRecovery TestingInheritance

Section 1

Storage Tiers

Interactive Tier Planner

Total Portfolio Value ($)

$25,000

🔥 Hot10%

$2,500

🔐 Hardware70%

$17,500

🏔️ Cold20%

$5,000

Hot 10%

Hardware 70%

Cold 20%

🔥

Tier 1 — Hot Wallet

Daily Operations · Recommended: 5–10%

Active DeFi interactions, NFT minting, dApp usage. Think of this as cash in your pocket.

Wallets: MetaMask, Phantom, Rabby

Rules:

•Only keep 1-2 weeks of activity funds

•Treat as expendable

•Revoke approvals after each session

Example: You mint an NFT with $2,500 loaded. If drained, you lose 10% — painful but survivable.

Section 2

Backups & Multi-Sig

Backup Location & Medium Planner

Locations (pick 2-3)

🏠Home safe / lockbox

🏦Bank safe deposit box

👨‍👩‍👧Trusted family member

⚖️Attorney / estate planner

Backup Medium

📝Paper (handwritten)(Low)

🔩Stamped metal plate(Very High)

⚙️Laser-engraved steel(Highest)

Backup Resilience Score0%

🚨 Vulnerable backups. Add more locations and metal plates.

Multi-Sig Configurator

Total Signers

Required (Threshold)

2-of-3 Multi-Sig

Any 2 of 3 must approve. Can lose 1 key(s).

Signer Diversity Checklist

Different hardware wallet brands

Geographically separate locations

Different people hold keys

No single person can reach threshold

🚨 Low diversity. Diversify devices, locations, and people.

Section 3

Inheritance Planning

💡 An estimated 3-4 million BTC are permanently lost because holders died without access instructions.

Inheritance Readiness Checklist

Written instructions (NOT containing seeds)×3

Document lists backup locations×3

Referenced in legal will×3

Trusted person knows plan exists×3

Recovery tested with heir×2

Inheritance Readiness0%

🚨 High risk of permanent loss. Start with written instructions today.

Recovery Test Tracker

Located seed backup(s)Critical

Restored wallet from seed on test deviceCritical

Reset and restored hardware walletCritical

Tested multi-sig signing flowHigh

🚨 Untested backups are unreliable. Schedule testing this week.

Storage Risk Self-Assessment

Check any risks that apply to your setup:

All funds in single walletcritical

Seed in only one locationcritical

Seed stored digitallycritical

Large holdings without hardware wallethigh

✅ No storage risks identified.

Watch Out

Common Mistakes

🎯

I keep my $50K portfolio in MetaMask because it's easier to access

Convenience is the enemy of security. One malicious approval drains everything. Split into tiers.

📍

My seed phrase is in my desk drawer — that's my only copy

One location = one disaster away from total loss. Create 2-3 copies on metal plates in separate locations.

🔑

My 2-of-3 multi-sig has all keys in my home office

Same location defeats multi-sig purpose. Diversify brands AND locations.

🏔️ Golden Rule: Think in layers. No single wallet, backup, location, or person. Redundancy is the foundation of security.

Test Yourself

Knowledge Check

Next Steps

→Continue learning: OpSec for Power Users and Founders

→Hands-on: Create a diagram of your tiered wallets and backup locations