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
- 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.
- 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
- 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
- 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
- Upload the seed phrase that you’ve used to set up the first cold wallet
- In case you damage your primary cold wallet, you can quickly swap to your back up without any issues
- If your primary cold wallet is stolen, you can quickly use the backup to transfer funds to the blank wallet
- Purchase another cold wallet, but this wallet is stored in a location that is extremely secure (e.g. safety deposit of a bank)
- If you’re planning on holding your crypto long term, transfer these funds into that wallet
- If you have significant amount of cryptocurrency, you can also split your funds across multiple cold wallets and stored in multiple secure locations.