Learn the difference between wallets and exchanges, how recovery phrases work, and practical steps to reduce theft risk.
Understand what a wallet does
A crypto wallet manages keys used to authorize transactions; it does not hold coins like a physical purse. A custodial platform controls keys on a customer’s behalf, while a self-custody wallet puts more responsibility on the owner.
Protect the recovery phrase
A recovery phrase can give control over assets. Never share it with support staff, websites, chatbots or people who promise to repair a wallet. Do not store it in a public cloud document or send it in a message. Keep a secure offline backup appropriate to your circumstances.
Check network and destination
Before sending funds, verify the asset, network, destination address and fee. Some addresses and networks look similar but are not interchangeable. A small test transfer can reduce certain operational mistakes, although it does not guarantee the recipient is trustworthy.
Recognize common scams
Be suspicious of unsolicited direct messages, fake airdrops, recovery services, remote-access requests and sites that ask for a seed phrase. A project logo or a professional-looking website is not evidence of legitimacy.
Plan for irreversible mistakes
Blockchain transfers are often difficult or impossible to reverse. Use unique passwords and strong account security for exchanges, consider hardware security options if appropriate, and never invest money you cannot afford to lose. This guide is educational, not individual financial advice.
Editorial note: This guide is general information, not professional financial, legal, medical or investment advice. Check authoritative and up-to-date sources before acting on important claims.