Security Center
Protect your crypto from hackers, scammers, and your own mistakes. Security is not optional.
In crypto, you are your own bank. There's no customer support to recover stolen funds. Learn these guides before investing.
Over $3.8 billion was stolen from crypto users in 2026. Not from sophisticated blockchain hacks. From phishing emails, fake websites, compromised exchanges, and simple mistakes. Most victims could have prevented their loss by following basic security practices.
These 6 guides teach important security skills. You'll learn how to enable strong authentication, recognize scam attempts, store crypto safely, and plan for worst-case scenarios. Security isn't optional in crypto. It's the difference between keeping and losing your money.
Start with 2FA setup. Then learn to spot phishing. Master secure storage before buying significant amounts. Read all six guides before investing more than $1,000.
Why Crypto Security Is Different
Traditional banks reverse fraudulent transactions. Credit cards offer chargeback protection. Crypto offers none of that. Once coins leave your wallet, they're gone forever. Understanding this fundamental difference is critical:
No Chargebacks or Reversals
Send Bitcoin to wrong address? It's gone. Got scammed by fake exchange? No refund. This irreversibility is by design - it's what makes Bitcoin decentralized. But it puts all responsibility on you.
Banks can freeze accounts, reverse transactions, investigate fraud. Blockchain networks can't and won't. This freedom comes with total personal responsibility for security.
You're a High-Value Target
Hackers know crypto holders have money and weak security. They send thousands of phishing emails daily, create fake exchange sites, compromise Discord servers, impersonate support staff. You're dealing with professionals.
According to Chainalysis 2026 report, average crypto phishing scam netted $47,000 per victim. Compare that to $300 average for traditional phishing. Criminals invest time in crypto targets because payoff is massive.
Private Keys Are Everything
Your bank account is protected by your password plus bank's security systems. Your crypto is protected by one thing: your private key (or seed phrase). Anyone with your key owns your crypto. Period.
This is why "not your keys, not your coins" is crypto's golden rule. Keeping crypto on exchanges means trusting them with your keys. They get hacked, you lose everything. FTX users learned this painful lesson in November 2022.
Transactions Are Public
Every Bitcoin, Ethereum, and most other crypto transactions appear on public blockchain. Anyone can see amounts and addresses. Link your real identity to an address (by posting it online, KYC at exchange, etc.) and all your transactions become traceable.
Privacy coins (Monero, Zcash) hide transaction details but most people use transparent blockchains. This makes operational security (OPSEC) critical if privacy matters to you.
Common Attack Vectors
Understanding how attacks happen helps you defend against them. These are the methods thieves use most successfully:
Phishing (70% of Crypto Theft)
Fake emails pretending to be from Coinbase, Binance, MetaMask. Fake websites with URLs like "coinbαse.com" (using Greek alpha instead of 'a'). Discord messages from "Support" asking for seed phrase. All phishing.
Victims click links, enter credentials on fake sites, and lose everything in minutes. Some sophisticated phishing uses legitimate-looking websites that steal credentials and wallet connect approvals simultaneously.
Malware and Clipboard Hijacking
You copy a Bitcoin address. Malware on your computer changes it to attacker's address. You paste and send funds to wrong person. Clipboard hijackers stole $580 million in 2026.
Other malware screenshots your screen when you open wallet, logs keystrokes to capture passwords, or searches files for seed phrases stored in documents. Never store seed phrases digitally. Ever.
SIM Swapping Attacks
Attacker calls your mobile carrier pretending to be you. They convince support to transfer your number to their SIM card. Now they receive your 2FA codes via SMS, reset your passwords, drain accounts.
This is why SMS 2FA is dangerous for crypto. Use authenticator apps (Google Authenticator, Authy) or hardware keys (YubiKey). T-Mobile, AT&T, and Verizon were all compromised by SIM swap attacks in 2024-2026.
Social Engineering
Scammers build trust over weeks or months. Dating app romance scams where "partner" introduces you to "profitable" crypto platform (it's fake). Telegram groups where "expert traders" share "winning strategies" (they want your money).
Pig butchering scams (fattening victim before slaughter) stole over $2.5 billion in 2026. Victims thought they had relationships or friendships. They lost life savings.
Malicious Smart Contracts
You connect wallet to DeFi site or NFT mint. Click "approve" on transaction. Seems normal. But the smart contract you approved can now drain your entire wallet. Hundreds of fake DeFi sites exist solely for this.
Always check what you're approving. Use tools like revoke.cash to see and cancel dangerous approvals. Never approve unlimited token access unless you completely trust the protocol.
Exchange Hacks
Mt. Gox (2014, 850k BTC), Bitfinex (2016, 120k BTC), Coincheck (2018, $530M), KuCoin (2020, $280M), Ronin Bridge (2022, $625M). Major hacks happen every year. If your coins are on exchange when it gets hacked, you might lose everything.
Mt. Gox victims waited 10 years for partial repayment. Most exchange hacks result in total loss. This is why you withdraw to personal wallet after trading. Only keep trading funds on exchanges.
Important Security Practices
Follow these practices religiously. They're not paranoid overkill. They're minimum standards for protecting serious money:
Password Management
Use a password manager (1Password, Bitwarden). Generate random 20+ character passwords for every site. If one site gets hacked, attackers can't use that password elsewhere. Reusing passwords is gambling with your money.
Master password should be 30+ characters you've memorized. Use passphrase method: "MyCat$Ate#7PurpleTacos!In2019" is easier to remember than "xK9$mP2@vL" but much stronger.
Email Compartmentalization
Create dedicated email only for crypto accounts. Never use it for anything else. Don't post it publicly. This makes targeted phishing harder - attackers won't know it exists.
Use alias emails (SimpleLogin, AnonAddy) for each exchange. If one exchange leaks your email, you'll know which one and can deactivate that alias. Costs $1-3/month, worth it for $10k+ portfolios.
Device Hygiene
Keep operating system and apps updated. Old software has security holes. Automatic updates are fine for Windows, macOS, iOS, Android. Install antivirus (Windows Defender is sufficient for most users).
For serious holdings ($50k+), consider dedicated crypto computer. Old laptop with fresh OS install, only used for wallet access. Never browse web or check email on it. Extreme but effective.
Storage Security Tiers
Match storage security to amount stored. Overkill security for $100 wastes time. Insufficient security for $50k invites disaster:
Tier 1: Under $1,000
Mobile wallet (Trust Wallet, Coinbase Wallet) or exchange with 2FA enabled. Convenient for learning and small amounts. Write seed phrase on paper, store at home. Check wallet address carefully before sending.
Tier 2: $1,000 - $10,000
Hardware wallet (Ledger Nano S Plus, Trezor One). Seed phrase written on metal backup, stored in home safe or bank safe deposit box. Enable passphrase (25th word) for additional security layer.
Tier 3: $10,000 - $100,000
Hardware wallet with passphrase. Seed phrase split across two secure locations (home safe + bank deposit box). Use multisig if technically capable (requires 2 of 3 devices to approve transactions).
Tier 4: Over $100,000
Multisig setup (2-of-3 or 3-of-5). Hardware wallets from different manufacturers at different locations. Consider professional custody solutions (Fidelity Digital Assets, Coinbase Custody). Estate planning with lawyer to ensure heirs can access if something happens to you.
Keep 90% in cold storage (hardware wallet, rarely accessed). Keep 10% hot (exchange, mobile wallet) for trading or spending. This way if hot wallet gets compromised, you lose at most 10%.
Red Flags and Warning Signs
Learn to recognize danger signals before it's too late:
Urgent Pressure to Act
"Your account will be locked in 2 hours if you don't verify now!" Legitimate companies don't threaten immediate consequences. Urgency is manipulation tactic used by scammers to bypass your critical thinking.
Free Money Promises
"Send 1 ETH, receive 2 ETH back!" Elon Musk isn't giving away crypto on Twitter. Bill Gates isn't doubling your Bitcoin. These giveaway scams steal billions annually. If it sounds too good to be true, it's a scam.
Support Contacting You First
Real support waits for you to contact them. If "Coinbase Support" DMs you on Discord, it's a scammer. If you receive unsolicited email from "Binance Security Team," it's fake. Always initiate contact through official channels.
Requests for Seed Phrase
Nobody legitimate ever needs your seed phrase. Not support, not your friend, not "the blockchain team" (no such thing). Sharing seed phrase is equivalent to handing over your wallet. Never enter it anywhere except your own wallet recovery.
Suspicious URLs
"coìnbase.com" (using Unicode characters), "binance-support.com" (fake subdomain), "metamask-wallet.co" (wrong TLD). Check URL character-by-character before entering credentials. Bookmark real sites.
Guaranteed Returns
"Guaranteed 20% monthly returns!" No investment guarantees returns. Anyone promising guaranteed high returns is running a Ponzi scheme. They pay early investors with new investors' money until it collapses.
Emergency Response Plan
If you suspect compromise, act immediately. Minutes matter:
Once per year, practice recovering wallet from seed phrase on a test wallet with small amount. Knowing you can recover under pressure prevents panic during actual emergency.
Privacy Best Practices
Don't Advertise Your Holdings
Posting "just bought 5 BTC!" on social media makes you a target. Scammers, thieves, even violent criminals monitor crypto communities. The $5 wrench attack (torture until victim transfers crypto) is real and growing.
Use Different Addresses
Generate new receiving address for each transaction. This makes tracking your total balance harder. HD wallets (BIP-39) do this automatically. Reusing addresses links all your transactions publicly.
Consider CoinJoin for Bitcoin
CoinJoin mixes your Bitcoin with others to break transaction trail. Wasabi Wallet and Samourai Wallet offer this. Not illegal but some exchanges flag CoinJoin outputs. Understand trade-offs before using.
Buying a hardware wallet doesn't make you secure. Following operational security practices does. Best security combines multiple layers: strong authentication, safe storage, careful behavior, and constant vigilance.
Security Training Roadmap
Follow this learning path based on your portfolio size and risk tolerance:
Complete Beginner (First $500)
Week 1: Set up authenticator app 2FA on all exchange accounts. Learn to recognize basic phishing (check sender email addresses, never click links in crypto emails).
Week 2: Create unique passwords for each exchange using password manager. Set up separate email for crypto accounts. Bookmark official exchange URLs.
Week 3: Learn about seed phrases. Practice wallet recovery with test wallet containing $20. Understand that seed phrase = complete wallet access.
Week 4: Study common scams (giveaway fraud, fake support, impersonators). Learn red flags. Test yourself by identifying scam messages on r/CryptoCurrency.
Intermediate ($500 - $5,000)
Month 1: Purchase hardware wallet (Ledger or Trezor). Transfer funds from exchange. Practice sending small amounts first. Verify addresses character-by-character.
Month 2: Create metal seed backup (Cryptosteel, Billfodl). Store in home safe or secure location. Test recovery process once to ensure backup works correctly.
Month 3: Learn about malicious smart contract approvals. Use revoke.cash to check and revoke unnecessary approvals. Understand what you're signing in MetaMask.
Month 4: Set up withdrawal whitelists on exchanges. Enable all available security features (anti-phishing codes, device management). Consider hardware security key (YubiKey).
Advanced ($5,000 - $50,000)
Quarter 1: Implement cold storage for 80-90% of holdings. Keep only trading funds on exchanges. Use multiple hardware wallets from different manufacturers for diversification.
Quarter 2: Learn multisig (2-of-3 setup). Requires technical knowledge but significantly increases security. Consider using Unchained Capital or Casa for guided multisig setup.
Quarter 3: Create inheritance plan. Document wallet locations and recovery instructions (without exposing seeds). Store with lawyer or trusted family member. Update annually.
Quarter 4: Annual security audit. Review all exchange accounts, revoke old API keys, update passwords, test wallet recoveries, verify backup locations still secure.
Expert (Over $50,000)
Year 1: Implement geographic distribution (hardware wallets at different physical locations). Consider professional custody for portion of holdings. Establish relationship with crypto-focused attorney.
Year 2+: Regular security reviews (quarterly). Insurance consideration (some providers offer crypto theft insurance). Tax planning with crypto-specialist CPA. Estate planning updates.
Security FAQs
Is it safe to keep crypto on Coinbase or Binance?
For trading funds (under $5k), yes with proper 2FA. For long-term holdings, no. Exchanges get hacked, face regulatory seizure, or go bankrupt. Transfer long-term holdings to hardware wallet you control.
Can I store seed phrase in password manager?
Not recommended for large amounts. Password managers are online, creating digital attack surface. For serious holdings, seed phrase should exist only on paper or metal, never digitally. For small amounts ($500-$2k), encrypted password manager with strong master password is acceptable risk.
What if I lose my hardware wallet?
Your funds are safe as long as you have seed phrase backup. Buy new hardware wallet, enter seed phrase, access restored. If wallet had passphrase enabled, you have more time before needing to move funds.
Should I memorize my seed phrase?
No. Human memory is unreliable. You'll forget after head injury, illness, or just time passing. Always have physical backup. Memorization can be additional layer but never the only one.
Is SMS 2FA better than nothing?
Yes, much better than no 2FA. But SMS is vulnerable to SIM swapping. Authenticator app 2FA (Google Authenticator, Authy) is stronger. Hardware security keys (YubiKey) are strongest. Use whatever you'll actually enable - imperfect security beats no security.
How often should I update my security setup?
Review annually minimum. Check when: portfolio value increases significantly, new attack methods emerge, exchanges add security features, or crypto regulations change in your country.
Security Guide Library
Read guides in order: 2FA Setup → Phishing Protection → Secure Storage. Then study Common Scams and Recovery Planning. Finally, review Privacy Tips if needed:
Set Up 2FA Properly
Two-factor authentication is important. Learn to use authenticator apps, not SMS.
Phishing Protection
Recognize and avoid phishing attacks targeting crypto users.
Secure Storage Practices
How to properly store your crypto for different amounts and use cases.
Recovery Planning
Plan for the worst. What happens to your crypto if something happens to you?
Common Crypto Scams
Learn the most common scams: giveaway fraud, rug pulls, fake airdrops, and more.
Privacy Tips
Protect your identity and transaction privacy in the crypto world.