November 2022. FTX collapsed.
I had funds caught on the change. Not my complete portfolio – I’d already moved most to chilly storage – however sufficient to harm.
Three years later, I’m nonetheless ready for partial reimbursement primarily based on 2022 costs. In the meantime, the crypto I might have held is value 7x extra.
That’s once I discovered: “not your keys, not your cash” isn’t a slogan. It’s a survival rule.
Right here’s how I retailer crypto now – and why you want a number of wallets, not only one.
The Factor No person Desires to Discuss About
Quick ahead to October 2025: Trump pardons CZ. A $4.3 billion Binance fantastic disappears. Everybody celebrates the regulatory reset.
Me? I’m reminded that if political connections can erase a multi-billion greenback penalty, what makes you assume your funds are protected on any change?
Binance paid the fantastic. CZ served 4 months. Now he’s free, and the change is stronger than ever.
Nice for crypto adoption. Horrible for anybody who thinks “too massive to fail” means “protected to belief.”
As a result of right here’s the fact: exchanges get hacked. They go bankrupt. They freeze withdrawals. And when it occurs, your “Bitcoin” is only a quantity in another person’s database.
Not your keys, not your cash.
What Exchanges Don’t Inform You
Let me hit you with some numbers that ought to scare you:
$1.4 billion stolen from exchanges and protocols in 2024. Whereas that is down from 2023, it’s nonetheless large.
Mt.Gox (2014): $450 million gone. Customers waited 11 years for compensation – and eventually began receiving partial reimbursement in 2024.
FTX (2022): $8 billion vanished. Sam Bankman-Fried obtained 25 years. Most customers? They obtained a claims quantity and are nonetheless ready. The reimbursement plan guarantees 118–142% of declare worth – however primarily based on 2022 costs. Bitcoin was $16,600 then. Right this moment? $115,000. That’s a 7x alternative price.
Binance (a number of incidents): Regardless of being the most important change, they’ve confronted safety challenges together with the 2022 incident that resulted in $570 million affected (later recovered via freezing).
And people are simply the massive names you’ve heard of. Smaller exchanges? They collapse usually.
Even when an change doesn’t get hacked, they will:
• Freeze your account throughout “upkeep” (normally while you wish to withdraw)
• Go bankrupt and tie your funds up in years of authorized proceedings
• Get regulated out of existence in sure jurisdictions
• Resolve you violated some Phrases of Service you by no means learn
The sample? You don’t management the keys. They do. And when issues go flawed, you’re simply one other creditor hoping to get pennies again.
What FTX Taught Me
I saved crypto on FTX as a result of it was “handy.” The interface was clear. The yields have been good. Everybody I knew used it. Sam Bankman-Fried was on TV with celebrities. It felt protected.
Then one morning in November 2022, withdrawals stopped. Inside 48 hours, FTX filed for chapter.
My funds have been locked. No entry. No warning.
The FTX chapter course of revealed that buyer funds had been used for dangerous buying and selling at Alameda Analysis. The crypto wasn’t sitting in wallets. It was gone, gambled away.
The worst half? It was utterly preventable. If I’d spent a couple of hundred {dollars} on {hardware} wallets and adopted correct safety, these funds would nonetheless be mine – and value 7x extra immediately.
What Truly Retains Your Crypto Secure
A {hardware} pockets (additionally known as a chilly pockets) is a bodily machine that shops your non-public keys offline.
Consider it like this:
• Scorching pockets (change, cellphone app): Your keys are on-line, related to the web, weak 24/7.
• {Hardware} pockets: Your keys by no means contact the web. Hackers can’t entry what isn’t on-line.
If you wish to ship crypto, the transaction will get signed on the machine itself, then broadcast. Your non-public keys by no means go away the {hardware}.
Even when your laptop is contaminated with malware, even if you happen to’re utilizing public WiFi, even when somebody’s watching your display screen – they will’t steal your keys.
It’s not foolproof. Nothing is. However it’s the closest factor to “unhackable” that exists in crypto.
How I Retailer Crypto Now (The Multi-Layer Technique)
After FTX, I redesigned my complete method. Right here’s the system I take advantage of:
Layer 1: Lengthy-Time period Chilly Storage
What I take advantage of: A number of {hardware} wallets from completely different producers
Why a number of units:
• Main Ledger Nano X: Foremost Bitcoin and Ethereum holdings
• Main Trezor Mannequin T: Backup + completely different safety structure
• If one firm has a vulnerability, the opposite protects my holdings
Storage:
• Gadgets in separate safe places
• Restoration phrases saved individually from units
• By no means multi function place
What goes right here:
• Bitcoin and Ethereum long-term holdings
• Any crypto I gained’t contact for years
• Nearly all of my portfolio
Why this works:
• Offline = unhackable by distant assaults
• Diversified throughout producers
• Bodily separation prevents single level of failure
Layer 2: Energetic Chilly Storage
What I take advantage of: Secondary {hardware} pockets
Why separate from long-term storage:
• I don’t wish to always entry my important chilly wallets (safety danger)
• This pockets is for crypto I would transfer in 3–12 months
• Used for staking via official pockets apps
What goes right here:
• Crypto I’m staking (incomes 3–17% APY)
• Positions I would commerce throughout the yr
• Medium-term holdings
Why this works:
• Can stake immediately from {hardware} pockets (via Ledger Stay/Trezor Suite)
• Stability between safety and accessibility
• Staking rewards with out change danger
Layer 3: Trade Holdings
What I take advantage of: Two exchanges (Binance + Coinbase)
Wait, didn’t you simply say exchanges are dangerous?
Sure. However right here’s the fact: you want exchanges for sure issues.
What I carry on exchanges:
• Buying and selling capital
• Stablecoins incomes yield (at present 4–8% APY)
• Small quantities of altcoins not supported by {hardware} wallets
My change guidelines:
• Maintain minimal quantities
• Cut up between two exchanges (diversification)
• Withdraw instantly after shopping for
• Allow all security measures
Why this method:
• I can purchase crypto when alternatives come up
• Earn staking rewards on stablecoins
• If one change collapses, I don’t lose every little thing
The {Hardware} Wallets I Truly Belief
I’ve examined each main {hardware} pockets. Some are clunky. Some have horrible interfaces. Listed here are those I’d suggest.
Fast Comparability
💰 Worth
• Ledger Nano X: $149
• Trezor Mannequin T: $169
• Tangem Pockets: $50
• Ledger Nano S Plus: $79
🪙 Cash Supported
• Ledger Nano X: 5,500+
• Trezor Mannequin T: 1,500+
• Tangem Pockets: 6,000+
• Ledger Nano S Plus: 5,500+
📱 Connectivity
• Ledger Nano X: Bluetooth + USB ✅
• Trezor Mannequin T: USB solely
• Tangem Pockets: NFC (faucet to cellphone) ✅
• Ledger Nano S Plus: USB solely
🔐 Kind Issue
• Ledger: USB machine with display screen
• Trezor: USB machine with touchscreen
• Tangem: Card (like bank card)
• Ledger: USB machine with display screen
⭐ My Score
• Ledger Nano X: 9/10 (finest total)
• Trezor Mannequin T: 9/10 (finest for chilly storage)
• Tangem Pockets: 7.5/10 (finest for learners)
• Ledger Nano S Plus: 8/10 (finest worth)
Ledger Nano X – Greatest General ($149)
That is what I take advantage of for staking and positions I would transfer inside a yr.
What I like:
• Helps 5,500+ cryptocurrencies (principally every little thing)
• Bluetooth connectivity (you should use it along with your cellphone)
• Ledger Stay app is intuitive
• Constructed-in battery lasts weeks
• Can stake ETH, ADA, SOL, DOT immediately from the machine
What I don’t like:
• Not totally open-source (Ledger’s safety chip is proprietary)
• Barely pricier than finances choices
Who it’s for: Anybody who needs to stake crypto, use DeFi sometimes, or wants cell entry.
Get it right here: [Ledger Official Store]
2. Trezor Mannequin T – Greatest for Chilly Storage ($169)
That is what I take advantage of for long-term Bitcoin and Ethereum storage.
What I like:
• Totally open-source ({hardware} and software program)
• Coloration touchscreen interface
• No Bluetooth (some see this as safer for chilly storage)
• Shamir Backup help (can break up restoration phrase)
• Robust popularity in Bitcoin group
What I don’t like:
• Helps fewer cash than Ledger (1,500+ vs 5,500+)
• No Bluetooth means much less handy for energetic use
Who it’s for: Lengthy-term holders who prioritize most safety and open-source verification.
Get it right here: [Trezor Official Store]
3. Tangem Pockets – Greatest for Rookies ($50)
A card-based {hardware} pockets that works with NFC (faucet to cellphone). Best to make use of, however restricted performance.
What I like:
• Most cost-effective possibility at $50
• Very simple (simply faucet to cellphone)
• No charging wanted (no battery)
• Helps 6,000+ cash
• Seems like a bank card (discreet)
• Sturdy (water/mud resistant)
What I don’t like:
• No display screen (should belief cellphone app)
• Can’t stake or use DeFi immediately
• Much less safe than units with screens (can’t confirm addresses on machine)
• Tangem controls some features of key era
Who it’s for: Full learners who need the best potential setup, or as a backup pockets for small quantities.
Get it right here: [Tangem Official Store]
4. Ledger Nano S Plus – Greatest Price range Choice ($79)
Identical safety because the Nano X, fewer options. Excellent for intermediate customers on a finances.
What I like:
• Half the worth of Nano X
• Identical safety chip
• Helps 5,500+ cash
• No battery to fret about
• Bigger display screen than authentic Nano S
What I don’t like:
• No Bluetooth (should plug into laptop)
• Smaller display screen than Nano X
Who it’s for: Intermediate customers who don’t want cell connectivity.
Get it right here: [Ledger Official Store]
Which Pockets Ought to You Truly Get?
For those who’re model new to crypto (lower than $500):
Begin with Tangem Pockets ($50). It’s easy, low cost, and will get you acquainted with self-custody.
For those who maintain $500-$5,000:
Get Ledger Nano S Plus ($79). Greatest worth, full performance.
For those who maintain $5,000-$50,000:
Get Ledger Nano X ($149). You want Bluetooth comfort and staking functionality.
For those who maintain $50,000+:
Get each Ledger Nano X and Trezor Mannequin T ($318 whole). Cut up your holdings throughout completely different producers for max safety.
If you would like most safety for long-term storage:
Get Trezor Mannequin T ($169). Totally open-source, no Bluetooth, good for chilly storage.
Why I Personal A number of Gadgets of the Identical Mannequin
Right here’s one thing most guides gained’t let you know: I don’t simply personal completely different pockets manufacturers – I personal a number of models of the identical mannequin.
My precise setup:
• Two Ledger Nano X units
• Two Trezor Mannequin T units
• One Ledger Nano S Plus
• One Tangem (for small quantities/journey)
Whole: 6 bodily units.
Why Purchase Duplicates?
{Hardware} Failure
{Hardware} wallets can break. Screens die. Buttons fail.
When my main Ledger’s display screen began glitching, I merely restored my accounts utilizing the identical 24-word phrase on my backup machine and continued with out lacking a beat.
Geographic Redundancy
I hold units in several places:
• Main units: Safe places I entry usually
• Backup units: Separate places (completely different metropolis/member of the family’s home)
If my home burns down, I lose one machine. Not all of them.
Firmware Updates
Firmware updates sometimes trigger points.
My rule: By no means replace all units directly.
• Replace main machine first
• Take a look at for per week
• If steady, replace backup
This manner, if an replace causes issues, I all the time have a working machine.
The Value-Profit
Extra price:
• Further Ledger Nano X: $149
• Further Trezor Mannequin T: $169
• Whole: $318 for peace of thoughts
For anybody holding important crypto, spending an additional $318 on backup units is apparent danger administration.
The Precept of Purposeful Isolation
Right here’s a safety idea most individuals miss: Don’t use the identical pockets for every little thing.
My rule: Storage wallets keep offline. Energetic wallets deal with transactions.
Why This Issues
Think about you’re interacting with a DeFi protocol. You assume you’re approving a respectable transaction, nevertheless it’s truly a phishing assault.
If all of your wallets are related to DeFi:
• Signal malicious transaction on Pockets A → drained
• Examine Pockets B → signal related transaction → drained
• Pockets C? Identical sample → drained
For those who apply useful isolation:
• Storage Pockets: By no means connects to DeFi, by no means indicators sensible contracts
• Staking Pockets: Solely used via official apps (Ledger Stay, Trezor Suite)
• Energetic Pockets: Used for DeFi, swaps, experiments
Consequence: Even when your Energetic Pockets will get drained, your Storage Pockets was by no means uncovered.
My Precise Pockets Features
Chilly Storage Wallets (By no means Contact These):
• Main units: Bitcoin and Ethereum long-term holdings ONLY
• No DeFi interactions
• No sensible contract approvals
• Solely receives deposits
• Saved in safe places, hardly ever accessed
Staking Pockets:
• Secondary machine: Staking ONLY via official apps
• Ethereum, Cardano, Polkadot staking
• No exterior DeFi protocols
• No token approvals outdoors official apps
Energetic Pockets:
• Tertiary machine: DeFi, swaps, new protocols
• This pockets interacts with sensible contracts
• Holds smaller quantities
• If compromised, restricted loss
Journey/Each day Pockets:
• Tangem card: Small quantities for every day transactions
• Straightforward to hold, faucet to cellphone
• If misplaced or stolen, minimal loss
Use Completely different Restoration Phrases
That is essential:
• Storage Pockets = Restoration Phrase A
• Staking Pockets = Restoration Phrase B
• Energetic Pockets = Restoration Phrase C
• Journey Pockets = Restoration Phrase D
In case your Energetic Pockets’s seed phrase will get compromised, your Storage Pockets stays protected.
The Setup Course of
For Ledger:
1. Unbox, plug in by way of USB
2. Arrange 8-digit PIN
3. Write down 24-word restoration phrase (CRITICAL)
4. Set up Ledger Stay app
5. Add Bitcoin/Ethereum accounts
6. Switch small check quantity ($20)
7. Affirm it arrives, then switch the remaining
Whole time: 20–half-hour
For Trezor:
1. Plug in, observe touchscreen prompts
2. Arrange PIN
3. Write down 24-word restoration phrase
4. Set up Trezor Suite
5. Add accounts
6. Take a look at switch, then transfer important holdings
Whole time: 20–half-hour
For Tangem:
1. Obtain Tangem app on cellphone
2. Faucet card to cellphone (NFC)
3. Create pockets (Tangem generates keys on card)
4. Write down backup card entry code
5. Switch small check quantity
6. Confirm it arrives
Whole time: 10–quarter-hour (best setup)
The One Mistake That Will Value You Every part
Shedding or exposing your 24-word restoration phrase.
That phrase IS your crypto. If somebody will get it, they personal your funds. For those who lose it and your machine breaks, your crypto is gone eternally.
What NOT to do:
• ❌ Don’t take a photograph
• ❌ Don’t retailer it digitally
• ❌ Don’t retailer it along with your {hardware} pockets
• ❌ Don’t inform anybody, ever
What TO do:
• ✅ Write it on the cardboard supplied
• ✅ Retailer in a fireproof protected
• ✅ Take into account a metallic backup (survives fireplace/flood)
• ✅ Retailer backup copy in several bodily location
• ✅ By no means retailer all backups collectively
What I Realized From FTX
Lesson 1: Centralization is a single level of failure
FTX wasn’t hacked. It was mismanaged. Your funds are solely as protected because the folks working the platform.
Lesson 2: “Too massive to fail” doesn’t exist in crypto
FTX was the second-largest change. It collapsed in 48 hours.
Lesson 3: Diversification isn’t elective
If I’d break up my holdings correctly throughout chilly wallets and a number of exchanges, my losses would have been minimal.
Lesson 4: Liquidity issues
Having some funds accessible means you’ll be able to act when alternatives come up. Full chilly storage sounds protected, nevertheless it’s rigid.
Lesson 5: Self-custody is the endgame
The purpose isn’t to keep away from exchanges eternally. It’s to attenuate publicity and maximize self-custody for holdings you don’t want to the touch.
My Suggestions Based mostly on Your Holdings
For those who maintain lower than $500:
Begin with Tangem Pockets ($50). Easy, low cost, will get you began with self-custody.
For those who maintain $500-$5,000:
Get Ledger Nano S Plus ($79). Greatest worth with full performance.
For those who maintain $5,000-$50,000:
Get Ledger Nano X ($149) + backup machine. You want cell entry and redundancy.
For those who maintain $50,000-$500,000:
Get Ledger Nano X + Trezor Mannequin T ($318). Cut up throughout producers. Add backups of every.
For those who maintain $500,000+:
Get a number of units, use useful isolation, think about multi-sig, seek the advice of a safety knowledgeable.
The Actual Value of Not Performing
A Ledger Nano X prices $149.
FTX taught 1000’s of individuals this lesson the arduous method. Common losses? 1000’s per particular person.
So that you’re risking 1000’s to avoid wasting $149.
That’s not being frugal. That’s playing with cash you’ll be able to’t afford to lose.
Right here’s What You Ought to Do Proper Now
For those who’re holding crypto on an change, you’re taking an pointless danger.
For most individuals: Get a Ledger Nano X ($149)
On a decent finances: Get a Tangem Pockets ($50) or Ledger Nano S Plus ($79)
For critical holdings: Get each Ledger Nano X and Trezor Mannequin T ($318 whole)
Set it up this weekend. Switch your funds. Sleep higher.
Not your keys, not your cash. Don’t be taught this the arduous method.
Transparency Notice
Some hyperlinks on this article are affiliate hyperlinks. For those who purchase via them, I earn a small fee at no further price to you. I solely suggest merchandise I’ve personally examined and use myself. The {hardware} wallets defending my crypto proper now have been bought with my very own cash, and I sleep higher due to them.
What’s your setup? Nonetheless conserving funds on exchanges, or have you ever made the transfer to chilly storage? Drop a remark under – I learn each one.
