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Wallet Security Fundamentals
Lesson 1 of 5Your cryptocurrency wallet is your bank account, vault, and identity all in one. Securing it properly is absolutely critical.
**Types of Wallets:**
**Hot Wallets (Online)**
• Software wallets on phones/computers
• Always connected to internet
• Convenient for daily use
• Higher security risk
• Examples: MetaMask, Trust Wallet, Phantom
**Cold Wallets (Offline)**
• Hardware devices or paper wallets
• Offline storage of private keys
• Maximum security for long-term storage
• Less convenient for frequent transactions
• Examples: Ledger, Trezor, KeepKey
**Key Security Concepts:**
**Private Keys**
• Mathematical proof of ownership
• Never share with anyone
• If lost, funds are gone forever
• If stolen, funds can be drained instantly
**Seed Phrases**
• 12-24 word backup of your wallet
• Can restore wallet on any device
• Write down on paper, never digital
• Store in multiple secure locations
**Public Keys/Addresses**
• Safe to share publicly
• Used to receive cryptocurrency
• Like your bank account number
• Cannot be used to steal funds
**Security Best Practices:**
• Use hardware wallets for large amounts
• Never enter seed phrases on websites
• Verify all addresses before sending
• Use different wallets for different purposes
• Keep software updated
Quick Quiz
What should you NEVER do with your seed phrase?