Here’s the Safest Way to Store Your Crypto

If you are unfamiliar with crypto wallets are or have questions on how they work, we recommend you read this article first: A Simple Introduction to Crypto Wallets

First-Layer Protection

  1. Invest in a Cold Wallet: a wallet that is not connected to the internet and therefore stands a far lesser risk of being compromised. These wallets can also be referred to as offline wallets or hardware wallets.
  2. Protect your seed phrase by either writing it on a piece of paper and securing it in a locked box or safety deposit box. Do not store this digitally because it’ll defeat the purpose of a cold wallet which is to secure your funds offline
  3. Another way you can secure your seed phrase if you insist on having it digitally is storing it on an USB and never connecting it to a PC with internet

Second-Layer Protection

  1. Purchase 2 more cold wallets: one will be used as a backup, second will be used as a blank wallet in case you need to transfer funds to
  2. Upload the seed phrase that you’ve used to set up the first cold wallet
  3. In case you damage your primary cold wallet, you can quickly swap to your back up without any issues
  4. If your primary cold wallet is stolen, you can quickly use the backup to transfer funds to the blank wallet

Third-Layer Protection

  1. Purchase another cold wallet, but this wallet is stored in a location that is extremely secure (e.g. safety deposit of a bank)
  2. If you’re planning on holding your crypto long term, transfer these funds into that wallet
  3. If you have significant amount of cryptocurrency, you can also split your funds across multiple cold wallets and stored in multiple secure locations.

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Ricky Young

My belief is that financial freedom cannot be obtained by just a 9-to-5, but a combination of smart investing and passive income. This is my journey to achieve financial freedom.

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