Everyone always asks me "Mike, how do I keep my crypto safe? I keep hearing horror stories of people losing everything, and I can't afford for that to happen to me."

This often turns into a long winded conversation followed by very little action.

So, I made a checklist to share the insights we use within a world class hedge fund.

Part 1: 3 Essential Steps to Secure Your Crypto Holdings

We have always trusted banks to keep our money safe, protect our credit cards from fraud, and check everything we do. With crypto, it's all up to you, and there are no second chances. One bad habit or one wrong click can make all your money disappear in seconds. Here's what you need to do to keep your crypto safe:

1. Exchanges

Exchanges are where you move money from a bank to crypto and where you trade major coins with each other. They are not bulletproof, so think of them as a place to conduct trades, but not to store the majority of your assets.

• Use Kraken because they are among the oldest and largest exchanges (https://www.kraken.com/ )

• Only keep money on exchanges that you need to trade or use soon. Minimize how much crypto you store on exchanges to reduce exchange risk.

• Withdraw to your hardware wallet after buying or trading, to keep funds safer from hacks

• Enable two-factor authentication

2. Wallet Security

• Software Wallets: Software wallets are great for sending transactions and interacting with the blockchain. However, they are more susceptible to hacks and being compromised. Therefore, we highly recommend using them for transactions only, not for storing the majority of your assets.

  • Use Rabby.io (https://rabby.io/ ) because it helps you avoid mistakes.

  • Keep only small amounts of money online.

  • Regularly update your software.

**Be careful about which websites you connect to. This is one of the hardest pieces of the puzzle, more to come in Part 2: How to Outsmart Crypto Scammers

• Hardware Wallets: Hardware wallets are the best for keeping your crypto safe. They need a physical action for any transaction to happen, like a key that a general has to turn to arm a nuclear warhead. If you keep your keys safe and don't approve bad transactions (more on that below and in Part 2), your assets should be secure.

  • Get a Ledger because they are reliable, are security-focused and have never been hacked. Buy these directly from the manufacturer.(https://www.ledger.com/)

  • For a full guide on how to set it up watch Adam’s video https://www.youtube.com/watch?v=44tqG5zacag 

  • Update the firmware regularly to get the latest security fixes.

• Multiple Wallets: If you are heavily into crypto, you might use different wallets for different blockchains, like Phantom, Base, or Metamask. 

  • Keep only small amounts in these for quick trades.

3. Backup and Recovery

• Regular Backups:

  • Write down your private key and seed phrase on paper and keep them in multiple safe places.

  • Memorize the 12-24 word seed phrase.

  • Test your recovery process to ensure you can access your assets if needed.

Phew… I think thats enough for today!

Part 2: How to Outsmart Crypto Scammers

In the next part, I’ll provide you with another checklist that will cover how not to lose it all in one wrong click.

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Talk Soon,

Mike Klein
Digital Wealth Insider

_{Disclaimer: The information in this newsletter is for general informational purposes only and is not financial or investment advice. All investments involve risk, including the loss of principal. Past performance is not indicative of future results. Consult with a professional before making any investment decisions. Digital Wealth Insider is not responsible for any losses or damages from the use of this information.}