#CryptoSecurity101 ### **Hot Wallets vs. Cold Wallets: Which Do I Use & Why?**
Security is everything in Web3, and choosing the right wallet setup can mean the difference between keeping your assets **SAFU** (Secure Asset Fund for Users) and losing them to hackers. Let’s break it down:
#### **🔥 Hot Wallets (Connected to the Internet)**
- **Pros:** Fast, convenient for daily transactions (e.g., DeFi, trading, NFTs).
- **Cons:** Vulnerable to hacks, phishing, and malware.
- **Examples:** MetaMask, Trust Wallet, Phantom.
#### **❄️ Cold Wallets (Offline Storage)**
- **Pros:** Nearly unhackable (private keys never touch the internet).
- **Cons:** Less convenient for frequent transactions.
- **Examples:** Ledger, Trezor, air-gapped wallets.
#### **My Approach: A Mix of Both**
- **Cold wallet (Ledger/Trezor)** → Long-term holdings, large amounts.
- **Hot wallet (MetaMask)** → Small amounts for daily use (bridging, swaps, NFTs).
- **Never store all assets in one place!**
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### **How I Secure My Crypto Assets**
1. **Hardware Wallet for Majority Funds** – Private keys stay offline.
2. **Multi-Sig for High-Value Wallets** – Requires multiple approvals for transactions.
3. **Separate Wallets for Different Uses** – One for DeFi, one for NFTs, one for holding.
4. **Never Share Seed Phrases** – Stored on metal plates (not digitally!).
5. **Regular Security Checks** – Revoke unused contract approvals (use [**Etherscan Token Approvals**](https://etherscan.io/tokenapprovalchecker)).
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### **Best Practices to Stay SAFU**
✅ **Use a Hardware Wallet** – For anything you can’t afford to lose.
✅ **Beware of Phishing** – Double-check URLs, never enter seed phrases online.
✅ **Enable 2FA** – For exchanges and email linked to crypto accounts.
✅ **Avoid Public Wi-Fi** – Use VPNs when accessing wallets.
✅ **Test Small Transactions First** – Before sending large amounts.
✅ **Keep Software Updated** – Wallet firmware, browser extensions,