10 Essential Wallet Security Best Practices for 2026

Introduction

As the crypto ecosystem grows, so do the threats targeting your digital assets. Whether you're holding Bitcoin, Ethereum, or any other cryptocurrency, following security best practices is essential. Here are our top 10 recommendations for 2026.

1. Use a Hardware Wallet for Long-Term Storage

Hardware wallets (like Ledger or Trezor) store your private keys offline, making them immune to online attacks. For any significant amount of crypto, a hardware wallet is non-negotiable.

Key Points:

Buy directly from the manufacturer
Never share your seed phrase
Store the device securely when not in use

2. Enable All Available Security Features

Modern wallets offer various security features:

Biometric authentication: Use fingerprint or face recognition
PIN codes: Add a PIN for additional protection
Auto-lock: Set your wallet to lock after periods of inactivity

3. Never Share Your Seed Phrase

Your seed phrase (recovery phrase) is the master key to your wallet. Anyone with it can steal all your funds.

Rules:

Never type it on a computer (except when restoring)
Never store it digitally (no photos, no cloud storage)
Never share it with anyone (no legitimate service will ask for it)

4. Use Multiple Wallets

Don't keep all your eggs in one basket:

Cold Wallet: For long-term holdings, rarely accessed
Hot Wallet: For daily transactions, smaller amounts
DeFi Wallet: For interacting with protocols, limited funds

5. Review Token Approvals Regularly

As we discussed in our token approvals guide, unlimited approvals can be dangerous. Use tools like SVGN's Approval Manager to:

See all active approvals
Revoke unnecessary permissions
Monitor for suspicious activity

6. Verify Every Transaction

Before signing any transaction:

Check the recipient address (character by character for large amounts)
Verify the amount and token
Understand what you're approving

Scammers often use lookalike addresses or deceptive approval requests.

7. Keep Software Updated

Outdated software can have security vulnerabilities:

Update your wallet applications regularly
Keep your hardware wallet firmware current
Update your browser and operating system

8. Use Strong, Unique Passwords

For any wallet with a password:

Use at least 16 characters
Include numbers, symbols, and mixed case
Never reuse passwords
Consider a password manager

9. Be Wary of Phishing

Phishing remains the #1 way people lose crypto:

Verify URLs: Always check you're on the correct website
Bookmark important sites: Don't rely on search results
Be suspicious: If something seems too good to be true, it is
Check social media carefully: Scammers impersonate official accounts

10. Consider Multi-Signature Setup

For high-value holdings, multi-sig wallets require multiple keys to authorize transactions:

2-of-3: Requires 2 signatures from 3 possible keys
Protection: Even if one key is compromised, funds are safe
Flexibility: Store keys in different locations

Bonus: Create a Recovery Plan

Think about what happens to your crypto if something happens to you:

Document your setup (securely)
Consider inheritance solutions
Inform trusted family members of the existence (not the details) of your holdings

Conclusion

Security in crypto is your responsibility. There's no bank to reverse fraudulent transactions, no support team to recover your password. By following these best practices, you significantly reduce your risk of losing your hard-earned assets.

Stay vigilant, stay safe, and remember: not your keys, not your coins.