Wallet Security Checker

Analyze your crypto security posture and get personalized recommendations to protect your digital assets from theft, loss, and vulnerabilities.

Basic Information

Backup & Recovery

Do you have a backup of your seed phrase/private keys?
Do you keep private keys stored digitally (cloud, email, notes)?
Have you tested your recovery process?

Access Control

Do you use a multisig wallet?

Authentication & Passwords

Do you have 2FA enabled on all crypto accounts?
Do you use a hardware security key (YubiKey)?
Do you reuse passwords across different services?
Do you use a passphrase (25th word) for your seed?

Operational Security

Do you click on links from unknown sources (DMs, emails)?
Do you access wallets on public WiFi?
Is your antivirus/anti-malware software updated?
Do you regularly update your wallet software?
Do you publicly share your wallet address?

Smart Contract Interactions

Do you have many active token approvals?
Do you verify contracts before signing transactions?
Do you frequently interact with new/unaudited protocols?

Insurance & Protection

Do you have DeFi insurance coverage?

Why Wallet Security Matters

In crypto, you are your own bank. This means you have complete control over your funds, but also complete responsibility for their security. Unlike traditional finance, there's no customer service to call if your wallet is compromised—lost funds are gone forever.

$3.8B
Stolen from DeFi in 2022
20%
Of all BTC is lost forever
80%
Of breaches due to user error

Most losses happen not because of sophisticated hacks, but due to simple mistakes: clicking phishing links, not backing up seed phrases, using hot wallets for large amounts, or granting unlimited token approvals to malicious contracts.

Common Security Risks

🎣 Phishing & Social Engineering

Attackers impersonate legitimate projects through fake websites, Discord DMs, or Twitter replies. They trick users into connecting wallets to malicious contracts that drain funds.

Protection:
  • • Never click links in DMs or emails
  • • Always verify URLs before connecting wallet
  • • Use hardware wallet for signing transactions
  • • Enable address whitelist on exchanges

🔑 Lost or Stolen Private Keys

If someone gains access to your seed phrase or private key, they have complete control over your wallet. This can happen through malware, physical theft, or compromised backups.

Protection:
  • • NEVER store seed phrases digitally (no photos, no cloud)
  • • Write on metal plates for fire/water resistance
  • • Store in multiple secure physical locations
  • • Use BIP39 passphrase (25th word) as extra protection
  • • Consider multisig for large amounts

✅ Malicious Token Approvals

When you interact with DeFi protocols, you grant permission for contracts to spend your tokens. Malicious contracts can request unlimited approval and drain your wallet at any time.

Protection:
  • • Always check approval amounts before signing
  • • Revoke unused approvals regularly (use revoke.cash)
  • • Never approve unlimited amounts for unknown contracts
  • • Use separate wallet for experimental DeFi

🔓 Weak Operational Security

Using public WiFi, outdated software, no antivirus, reused passwords, or clicking suspicious links creates attack vectors for malware and keyloggers.

Protection:
  • • Use VPN when accessing wallets
  • • Keep OS and wallet software updated
  • • Enable 2FA with hardware keys (YubiKey)
  • • Use password manager with unique passwords
  • • Maintain antivirus with real-time protection

Wallet Types & Security Trade-offs

Hot Wallet

MetaMask, Trust Wallet, Phantom
MEDIUM RISK

Software wallets connected to the internet. Private keys stored on your device.

✅ Pros:
  • • Free and easy to use
  • • Fast transactions
  • • Good for small amounts
❌ Cons:
  • • Vulnerable to malware
  • • Keys on internet-connected device
  • • Not suitable for large amounts
💡 Best For:
Active trading, DeFi interactions, amounts under $1,000

Hardware Wallet

Ledger, Trezor, SafePal
LOW RISK

Physical devices that keep private keys offline. Transactions signed on the device.

✅ Pros:
  • • Keys never leave device
  • • Immune to software attacks
  • • Can still interact with DeFi
  • • PIN protection
❌ Cons:
  • • Costs $50-150
  • • Slightly less convenient
  • • Can be physically stolen
💡 Best For:
Holdings over $1,000, long-term storage with occasional access

Multisig Wallet

Gnosis Safe, BitGo
VERY LOW RISK

Requires multiple signatures to approve transactions. No single point of failure.

✅ Pros:
  • • Maximum security
  • • No single point of failure
  • • Great for DAOs/teams
  • • Can recover if 1 key lost
❌ Cons:
  • • Complex setup
  • • Slower transaction approval
  • • Requires coordination
  • • Higher gas fees
💡 Best For:
Holdings over $100,000, DAO treasuries, business funds

Exchange Wallet

Coinbase, Binance, Kraken
HIGH RISK

Custodial wallets where the exchange controls your keys. "Not your keys, not your coins."

✅ Pros:
  • • Easy to use
  • • Customer support
  • • Account recovery possible
❌ Cons:
  • • You don't own the keys
  • • Exchange can freeze funds
  • • Exchange hacks (FTX, Mt. Gox)
  • • Can't use DeFi
💡 Best For:
Beginners learning crypto, active day traders, amounts under $500

Backup & Recovery Best Practices

The 3-2-1 Backup Rule

Adapted from data backup best practices, this rule ensures redundancy and protection against multiple failure scenarios:

3
Keep 3 copies of your seed phrase (1 in use + 2 backups)
2
Store on 2 different media (e.g., steel plate + paper)
1
Keep 1 copy off-site (bank vault, trusted family)

Recommended Storage Methods

1
Metal Plates (Best)
Fireproof, waterproof, permanent. Use steel stamping or engraving. Products: Cryptosteel, Billfodl, Steely.
2
Laminated Paper (Good)
Write clearly in pencil or archival ink. Laminate and store in waterproof container. Check annually for fading.
⚠️
NEVER Store Digitally
No photos, no cloud storage, no password managers, no emails. Digital storage is vulnerable to hacks, malware, and data breaches.

Test Your Recovery Process

Before trusting your backup, test the recovery process with a small test wallet. Many people discover their backup is incomplete or illegible only when it's too late. Practice makes perfect!

Advanced Security Measures

BIP39 Passphrase (25th Word)

Add an extra word to your 12 or 24-word seed phrase. This creates a completely different wallet. Even if someone finds your seed, they can't access funds without the passphrase.

✅ Benefits:
  • • Adds layer of security
  • • Creates plausible deniability
  • • Can have multiple wallets from one seed
⚠️ Risks:
  • • Forget passphrase = lose access forever
  • • Must back up separately
  • • More complex recovery

Hardware Security Keys

YubiKey, Google Titan, or similar FIDO2 devices provide phishing-resistant 2FA. They're physical devices that must be present to authenticate—much more secure than SMS or email codes.

💡 Recommendation:
Buy 2 keys (~$50 each): keep one on your keychain and one in a safe location as backup. Use for exchange accounts, email, and password manager.

Token Approval Management

Every time you interact with a DeFi protocol, you grant it permission to spend your tokens. These approvals persist even after you're done using the protocol.

Tools to Manage Approvals:
  • revoke.cash - View and revoke token approvals on Ethereum, BSC, Polygon, and more
  • approved.zone - Similar tool with clean interface
  • unrekt.net - Approval checker with security tips
Best Practice:
Review and revoke approvals monthly. Only approve the exact amount needed, not unlimited. For one-time swaps, approve only that transaction.

Recommended Security by Portfolio Size

Beginner: $0 - $1,000

Focus on learning safely
Minimum Requirements:
  • • Hot wallet is acceptable (MetaMask, Trust Wallet)
  • • Back up seed phrase on paper
  • • Use strong, unique password
  • • Enable 2FA on exchanges
  • • Basic antivirus software
Recommended:
  • • Start practicing with hardware wallet
  • • Learn to verify contracts before signing
  • • Create separate wallet for testing new protocols

Intermediate: $1,000 - $10,000

Upgrade your security
Minimum Requirements:
  • • Consider hardware wallet ($50-150 investment)
  • • 2+ physical backup locations
  • • Password manager (1Password, Bitwarden)
  • • Regular approval cleanup
  • • Test recovery process once
Recommended:
  • • Metal plate backup
  • • Hardware security key (YubiKey)
  • • Dedicated device for crypto
  • • BIP39 passphrase for extra security

Advanced: $10,000 - $100,000

Serious security required
Mandatory:
  • • Hardware wallet REQUIRED
  • • 3+ backup locations (including bank vault)
  • • Metal plate backups
  • • Hardware security keys
  • • Separate hot wallet for daily use (max 5% of portfolio)
  • • Test recovery annually
Recommended:
  • • Consider multisig for majority of funds
  • • DeFi insurance for protocol exposure
  • • Dedicated air-gapped computer
  • • Professional security audit

Professional: $100,000+

Institutional-grade security
Mandatory:
  • • Multisig wallet REQUIRED (minimum 2-of-3)
  • • 90%+ in cold storage
  • • Bank vault or safety deposit box backups
  • • Professional custody solutions for majority
  • • DeFi insurance ($500-1000/year)
  • • Legal documentation for heirs
  • • Quarterly security audits
Consider:
  • • Institutional custody (Fireblocks, BitGo)
  • • Legal entity structure
  • • Professional security firm consultation
  • • Geographic distribution of signers

Emergency Response Guide

🚨 If You Think Your Wallet Is Compromised

Immediate Actions (Within Minutes):
  1. Move all assets to a NEW wallet (created on clean device)
  2. Revoke all token approvals on compromised wallet
  3. Disconnect compromised wallet from all dApps
  4. DO NOT use same seed phrase or device
Within 1 Hour:
  1. Change passwords on all crypto-related accounts
  2. Enable 2FA with hardware key if not already
  3. Scan all devices with antivirus
  4. Check exchange accounts for suspicious logins
  5. Report to exchanges if accounts affected
Follow-up (24-48 Hours):
  • Investigate how compromise occurred
  • Factory reset compromised devices
  • Set up hardware wallet if you don't have one
  • Review and improve security practices
  • File police report if significant loss (for taxes/insurance)

Security Resources & Tools

Approval Management

  • • revoke.cash - Ethereum, BSC, Polygon approval checker
  • • approved.zone - Multi-chain approval management
  • • unrekt.net - Approval checker with security tips

Hardware Wallets

  • • Ledger - $79-149, supports 5000+ coins
  • • Trezor - $69-219, open-source
  • • SafePal - $50, budget option

Backup Solutions

  • • Cryptosteel - Indestructible seed storage
  • • Billfodl - Steel plate backup system
  • • Steely - Premium metal backup

Security Keys

  • • YubiKey 5 - $50-70, industry standard
  • • Google Titan - $30, affordable option
  • • Thetis - $30, budget FIDO2 key

Security Software

  • • 1Password - Password manager
  • • Bitwarden - Open-source alternative
  • • Malwarebytes - Anti-malware protection

Insurance

  • • Nexus Mutual - DeFi smart contract coverage
  • • InsurAce - Multi-chain insurance
  • • Unslashed - Protocol-specific coverage

Ready to Secure Your Crypto?

Use our Wallet Security Checker above to get a personalized security assessment and actionable recommendations tailored to your portfolio size and risk profile.