The Safest Way to Store Your Crypto in 2025 (Avoid These Mistakes!)

More people than ever are getting into crypto, but it can be tricky to find the best way to store your coins.

Above all else, it’s important that only you have access to your crypto — anything else is a disaster waiting to happen. That means that if you’ve got crypto sitting on an exchange right now, make sure you stick around to the end of this guide.

Or, if you’re looking to buy crypto, this guide will take you through the easiest and safest way to store your coins right now.

Let’s get started.

Never Leave Your Coins on a Crypto Exchange

Most people buy crypto through centralized exchanges (CEXs). As long as you’re buying from a reputable exchange, that’s not a bad thing. Let’s face it, CEXs can be a great way to quickly buy crypto with fiat currencies like the dollar or euro.

However, it’s crucial that you take full control of your coins as soon as possible.

In the crypto world, we call this taking custody of your own assets. This aligns with the popular crypto mantra “not your keys, not your coins.”

Essentially, whenever someone has your private key — which is the code used to control your wallet — they can steal or use your funds however they choose.

When you leave your coins in an online wallet controlled by a centralized exchange, you’re risking:

• The exchange may be hacked, with no guarantee of further reimbursement.
• The centralized platform going bankrupt, leaving you with lost assets.
• Internal fraud, when regular employees or even top managers misuse their access to customers’ funds.
• Theft, since an exchange might choose to rob its own customers.

Fortunately, there’s a simple way to bypass this problem.

Here’s how to get your crypto into a wallet that only you control.

Which Wallet Should I Use?

So, centralized exchange wallets are out. What other options are there?

The crypto landscape offers a few key ways to store your coins through wallets, all of which fall into one of the following categories:

1. Software wallets

Also known as “hot wallets”, these applications store your private keys on an internet-connected device like a mobile phone or a laptop.

They may come in the form of a mobile or desktop app, a browser extension, or a web service.

Pros: They’re usually free, user-friendly, and a good solution for newbies and active traders who need to access their funds on the go.

Cons: Software wallets are more prone to hacks since they are connected to the internet. 

Recommended options: MetaMask, Internet Money, and Rabby.

2. Hardware wallets

Known as “cold wallets”, these wallets are physical devices that function similarly to an external hard drive. 

Pros: These wallets offer added security, since they operate without access to the internet. This makes them a good fit for long-term investors who store a solid part of their assets in crypto.

Cons: Hardware wallets cost money, with a price typically ranging up to around $200 USD. They also require some technical skills due to a complex setup process.

Recommended options: Trezor or Ledger.

For the purpose of storing your crypto safely as quickly and cheaply as possible, we’re going to run you through how to set up your own software wallet in the next part of this guide.

Setting Up Your First Wallet

MetaMask is a free browser extension that is currently one of the crypto landscape’s most popular wallets.

It supports all Ethereum-based tokens by default, and enables connecting to other blockchains like Polygon, Binance Smart Chain (BSC), Avalanche, and more.

Here’s a step-by-step guide on how to set it up.

Step 1. Download and install MetaMask.

Make sure to download MetaMask from the project’s official website, or directly from the iOS and Android app store. When using the app stores, make sure that the download page is verified. 

In addition to working on your phone, the browser extension works on Chrome, Firefox, Brave, Edge, and Opera.

Typically, using one of these browsers on a PC, Mac, or Linux device  is the easiest way to get started.

Step 2. Create your wallet.

Launch the app and select “Create a Wallet”.

First, the app will ask you to agree or opt out of its data-gathering policies. 

Then, it will ask you to set up a password that you will use each time you log into your wallet. Make sure to keep your password written down somewhere offline that only you have access to.

Lastly, the wallet will provide you with a “seed phrase” that is made up of a combination of 12 or 24 random words that can be used to regain access to your wallet at any time. 

Your seed phrase is a piece of information about your crypto wallet that you need to be incredibly careful with.

If someone knows your seed phrase, they’ll be able to access your wallet and spend your funds. At the same time, if you don’t know your seed phrase, you won’t be able to access your crypto if you lose access to your device or encounter a software error.

That’s why experts advise that you write down your seed phrase on a piece of paper and store it somewhere offline in a location only you access.

To continue past this phase of the installation process, enter your seed phrase and continue to get access to your new wallet.

Step 3. Explore settings and deposit your funds.

Take some time to explore the wallet’s interface. Get familiarized with all its features to simplify your future activities.

When you’re ready, you can deposit the crypto that you already own — or intend to buy from a centralized or decentralized exchange — by using your wallet address as the ‘send’ account.

This works similarly to a bank transfer, wherein the recipient’s name is simply your wallet address.

To store ETH or any Ethereum-based tokens on this wallet, simply copy-paste your address when sending them from an exchange. Other networks require additional setups, which you can learn more about here.

To find your wallet address, navigate to the “Account 1” identifier in your MetaMask wallet. 

Your Questions Answered

How can I make sure my coins are safe?

Remember these three rules when storing your crypto:

1. Don’t store your assets on centralized exchanges.
2. Don’t share your private keys with anyone
3. Never lose or share your seed phrase.

What is a seed phrase?

A seed phrase is a set of random words that serves as a backup to help you restore your wallet on a different device. It’s crucial to keep this phrase secure, as anyone who has it may gain access to your funds.

What is the safest way to store crypto?

Hardware wallets like Trezor and Ledger provide top-notch security to your digital assets. Since they have no access to the internet, they cannot be hacked. For this reason, they’re considered the gold standard for crypto storage.