In the era of digital assets, cryptocurrency hacking methods continue to evolve, and wallet security is becoming increasingly important. How to protect wallet assets in 2025? This article will organize 5 practical security settings, explain the concept of cryptocurrency wallets, and help you effectively prevent hackers and protect your assets.
What is a cryptocurrency wallet? Basic concept analysis
A cryptocurrency wallet is a digital tool used to store, receive and send crypto assets. Unlike traditional bank accounts that store physical currency, cryptocurrency wallets are actually key pairs used to manage access to your assets. This set of keys is like "your digital identity". Only those who have the correct keys can control the corresponding assets.
Simply put, a cryptocurrency wallet does not directly store the coins themselves, but stores the "keys" that allow you to control blockchain assets. Because of this, the security settings of the wallet become particularly critical - once the key is leaked or stolen, hackers can directly transfer your assets and cannot be recovered.
Before entering into the actual wallet classification and security settings, understanding its operating logic can help you more clearly understand where hacker attacks will come from and how we can prevent risks.
Common cryptocurrency wallet types and risk analysis
When managing your crypto assets, choosing the right wallet type is crucial. Different wallets not only have their own characteristics in operation, but also have very different security risks and anti-hacking capabilities. Here are three common types of cryptocurrency wallets and their pros and cons:
1. Cold Wallet - The Safest Safe
A cold wallet is an offline storage wallet that is not connected to the Internet, thus greatly reducing the risk of being hacked. It is currently recognized as the safest storage method.
Applicable to: long-term holders, people with high asset allocation ratio
Risks: Human loss (not hacking) → misplacing the mnemonic, device damage, etc.
2. Hot Wallet - Convenient but be aware of the risks of connecting to the Internet
Most of the wallets you use to connect to DeFi and sign NFTs are hot wallets. Because they are always connected, they are vulnerable to attacks such as phishing sites, malicious signatures, and fake airdrops.
Applicable to: Highly interactive users on the chain
Risks: Phishing links, fake DApps, signature authorization traps
3. Exchange wallets - fast access but outsourcing risks
The exchange wallet is actually where the platform holds your assets. Although it is the most intuitive to operate and has a low entry threshold, your private key is not in your hands.
Suitable for: Investors who need fast transactions
Risks: Relying on the security of the platform, there is a possibility of being hacked and closed down
Tips for using cryptocurrency wallets – 5 security rules to prevent hacking
1. Safety guidelines for daily use
The private key and mnemonic phrase must not be disclosed to anyone. This is the ultimate control of your wallet. Once leaked, the assets can be completely transferred and cannot be recovered.
Do not sign unfamiliar websites and smart contracts at will. Hackers often disguise themselves as NFT airdrops, DApp connections, testing activities, etc. to lure you into signing malicious authorizations.
Never click on unfamiliar tokens or NFTs. These are often phishing traps designed to trick you into operating a contract or opening a malicious website.
2. Security Check before Transfer
Confirm that the front and back codes of the payment address are consistent to avoid incorrect transfers due to clipboard viruses.
Test with a small amount first, and then make a large transfer after confirming success.
Check whether the transaction fees (Gas Fees) at that time are reasonable. If the fees are too high, it is recommended to wait until the network congestion is relieved before transferring.
3. Only use trusted platforms and don’t hand over your assets to unknown third parties
Many cases of asset theft are not due to technical errors, but rather to users storing their assets on platforms with weak security or even fraudulent platforms. Choosing a large global exchange like Binance can effectively reduce such risks because it has a rigorous information security architecture, double verification mechanism and multi-layer risk control design.
Taking Binance as an example, in addition to providing basic protections such as abnormal login monitoring and 2FA verification, it also took the lead in implementing the Proof of Reserves system, making on-chain asset data public for users to check, and establishing a global compliance system and SAFU user protection fund, which further enhanced the transparency and security of asset storage.
4. Enable Two-Factor Authentication (2FA)
Whether it is an exchange account or a wallet application, be sure to enable two-factor authentication such as Google Authenticator or SMS verification. This can effectively reduce the risk of hackers being unable to log in even if they know your password.
Recommendation: 2FA is the first feature you should enable when signing up for any trading platform.
5. Security Pitfalls of Smart Contracts
When you interact with a DApp, you often sign a permission to allow the contract to operate your assets (such as transferring ERC-20 tokens). But you may forget that these authorizations are still valid. Hackers can directly steal assets by using expired authorizations. Many people’s assets were stolen because they forgot to withdraw the authorization they had previously signed.
Infinite Approval: Although convenient, it is extremely dangerous to directly authorize smart contracts to access all assets.
Recommendation: Use tools such as Revoke.cash and Debank regularly to clean up outdated authorizations.
Wallet questions frequently asked by newbies
I have just entered the cryptocurrency circle. Which wallet or trading platform is safer?
When you first start using it, it is recommended to use a hot wallet (such as MetaMask, Trust Wallet) + a large exchange account. Hot wallets are used to access DeFi and ecological applications, while trading platforms facilitate fiat currency deposits and withdrawals and asset conversions. Large global platforms like Binance not only have simple interfaces, but also provide 2FA, abnormal login notifications, and information security risk control mechanisms, making them a safer choice for novices.
Do I need a cold wallet even if I don’t have much assets?
Cold wallets are recommended for long-term asset holding. Remember to save your mnemonic phrase offline to reduce the chance of being hacked. You can also first implement hierarchical control through an account on a large trading platform, and then upgrade your cold wallet when your assets become larger.
How to allocate assets more safely?
There is no absolute standard for asset allocation, but the core principle is: "Strike a balance between operational convenience and asset security." For beginners who are not familiar with how to use the wallet, it is a relatively safe option to temporarily place all assets on a large exchange like Binance.
Conclusion
Starting from 2025, hackers will no longer just target technical vulnerabilities, but will specifically look for the "luck" and "carelessness" in human nature. Have you ever forgotten to cancel authorization, clicked on an unknown airdrop, or took a photo of your mnemonic phrase and saved it on your phone? These small oversights may be the starting point for the disappearance of assets. Anti-hacking has never been a high technical threshold, but rather a set of logic and habits that you develop when operating encrypted assets every day.
In this area, even your own bank and your own security chief. Remember, private keys and mnemonics are the last line of defense for asset security, so never give them to anyone!