Crypto Security Masterclass: Never Get Hacked

$4 billion was stolen from crypto users in 2025. Here's the complete guide to NOT being a victim — from basic hygiene to bank-grade security

🔐 4 Security Levels
🛡️ Battle Tested
📅 Updated Feb 8, 2026

Main points

  • Never Share Seed Phrase — No legitimate service will EVER ask for it. Period
  • Use App-Based 2FA — SMS can be SIM-swapped. Use Google Authenticator or YubiKey
  • Hardware Wallets — Required for significant holdings. Ledger or Trezor
  • Separate Email — Use a unique email only for crypto exchanges
  • Verify Everything — Check URLs, contract addresses, sender addresses. Trust no one
  • Metal Seed Backup — Paper burns. Metal survives fire and flood
01

Know Your Enemy: Common Attack Vectors

Before you can defend, you need to understand how hackers steal crypto:

🎣
Phishing Attacks
Fake websites, emails, or DMs that trick you into entering your seed phrase or signing malicious transactions.
Defense: Bookmark official sites. Never click links in DMs. Verify URLs character-by-character.
📱
SIM Swap Attacks
Hackers convince your carrier to transfer your number to their SIM, intercepting SMS 2FA codes.
Defense: Never use SMS 2FA. Use app-based authentication or hardware keys.
🦠
Malware/Keyloggers
Software that records your keystrokes, captures passwords, or modifies clipboard when you copy addresses.
Defense: Use hardware wallet. Verify addresses on device screen. Don't install random software.
💀
Malicious Smart Contracts
Contracts that drain your wallet when you "approve" a transaction. Common in fake airdrops and mints.
Defense: Use revoke.cash to check approvals. Never approve unlimited amounts. Read what you're signing.
🎭
Social Engineering
"Support" staff, fake giveaways, romance scams, investment "opportunities" — all designed to gain your trust.
Defense: Real support never DMs first. If it sounds too good to be true, it's a scam.
🏛️
Exchange Hacks/Failures
Exchanges get hacked or go bankrupt (FTX, Mt. Gox). Your funds on exchange aren't truly yours.
Defense: Only keep trading amounts on exchanges. Move holdings to self-custody.

Contrarian Take

Everyone's worried about Meta's metaverse spending. They should be. But what they miss is that Meta's AI advertising engine is so far ahead, they can burn $10B yearly on moonshots and still dominate.

02

Security Level Framework

Choose your security level based on your holdings. Higher value = higher security:

🟢
Level 1: Basic
For < $1,000 holdings
  • Strong, unique password (16+ chars)
  • App-based 2FA on exchange (NOT SMS)
  • Write down seed phrase on paper
  • Store paper in safe location
  • Keep device/OS updated
🟡
Level 2: Intermediate
For $1,000 - $10,000
  • All of Level 1 +
  • Hardware wallet (Ledger Nano)
  • Dedicated email for crypto
  • Metal seed phrase backup
  • Withdrawal address whitelist
  • Password manager (Bitwarden)
🟣
Level 3: Advanced
For $10,000 - $100,000
  • All of Level 2 +
  • YubiKey hardware 2FA
  • Dedicated device for crypto
  • Seed phrase in bank safe deposit
  • Multiple hardware wallet backups
  • Different wallets for different chains
🔴
Level 4: Paranoid
For $100,000+
  • All of Level 3 +
  • Multisig wallet (2-of-3)
  • Geographically distributed keys
  • Passphrase (25th word)
  • Estate planning for crypto
  • Operational security (don't talk about holdings)
03

Seed Phrase: Your Master Key

🔑
The Golden Rules of Seed Phrases
Anyone with your seed phrase can steal EVERYTHING
Never Digital
No photos, no cloud storage, no password managers, no notes apps, no encrypted files. If it touches the internet, it can be stolen.
🤫
Never Share
No "support" person, no website, no app will EVER need your seed phrase. Anyone asking is a scammer. 100% of the time.
🔥
Metal Backup
Paper burns, gets wet, fades. Use steel plates (Cryptosteel, Billfodl) to stamp your seed phrase. Survives fire and flood.
📍
Multiple Locations
Home safe + bank deposit box + trusted family member. If one location is compromised, you have backups.
🔐
Consider Passphrase
Adding a "25th word" creates a completely different wallet. Even if seed phrase is found, funds are safe without the passphrase.
Test Recovery
Before storing significant funds, test wallet recovery with your seed phrase. Know that it works before you need it.
⚠️
CRITICAL WARNING
"Enter your seed phrase to recover/sync/verify your wallet" is ALWAYS A SCAM. Legitimate wallets never ask for your seed phrase online. The only time you enter it is during manual recovery on a new device — and even then, directly into the wallet app, never a website.
04

Hardware Wallet Guide

If you have more than $1,000 in crypto, a hardware wallet is not optional — it's essential.

📟
Ledger Nano X
Best All-Around
~$149
  • Bluetooth connectivity
  • Large screen
  • 5000+ coins supported
  • Battery lasts weeks
  • Great mobile app
  • CC EAL5+ certified chip
🔲
Trezor Model T
Best Open Source
~$179
  • Touchscreen interface
  • Fully open source
  • 1000+ coins supported
  • Shamir backup (split seed)
  • No closed-source chip
  • Strong community
💳
Ledger Nano S Plus
Budget Option
~$79
  • Most affordable
  • USB-C connectivity
  • 5000+ coins supported
  • Same secure chip as Nano X
  • No Bluetooth/battery
  • Best for beginners

ONLY Buy Direct from Manufacturer

Never buy hardware wallets from Amazon, eBay, or third parties. Devices can be pre-compromised. Order only from ledger.com or trezor.io. Check tamper-evident packaging.

05

Two-Factor Authentication (2FA)

2FA is your second line of defense. But not all 2FA is equal:

❌ SMS 2FA

DON'T USE FOR CRYPTO

  • SIM swap attacks are easy
  • Social engineering carriers works
  • SS7 network vulnerabilities
  • Hackers specifically target crypto users

✓ App-Based 2FA

RECOMMENDED MINIMUM

  • Google Authenticator
  • Authy (cloud backup)
  • Microsoft Authenticator
  • Codes generated locally

🔐 Hardware Keys

BEST OPTION

  • YubiKey (industry standard)
  • Physical device required
  • Phishing-resistant
  • Impossible to remotely compromise

2FA Backup Rules

  • Save backup codes — Store with seed phrase (offline, secure)
  • Screenshot QR during setup — Print and store securely
  • Use Authy for cloud backup — But adds attack surface
  • Have recovery plan — What if you lose phone? Know the process
06

Scam Prevention Playbook

"Free" Giveaways

"Send 0.1 ETH, get 1 ETH back" — ALWAYS a scam. Elon Musk is not giving away crypto. Neither is anyone else. Ever.

Fake Support

Real support NEVER DMs first. Scammers create fake support accounts. Always reach out through official channels only.

Malicious Airdrops

Random tokens appearing in your wallet may be scams. Interacting with them can drain your wallet. Ignore unsolicited airdrops.

"Guaranteed Returns"

Any promise of guaranteed returns or "risk-free" profits is a scam. Real investments have real risks. No exceptions.

Urgency Pressure

"Act NOW or miss out!" — Legitimate opportunities don't require instant decisions. Urgency is a manipulation tactic.

Fake Websites

uniswap.org.xyz is NOT Uniswap. Check every character. Bookmark official sites. Never click links in DMs or emails.

"In crypto, assume everyone is trying to scam you until proven otherwise. Verify everything. Trust no one with your keys. This paranoia will save you."

— Security Researcher
07

Your Security Checklist

Complete this checklist to secure your crypto:

  1. Enable app-based 2FA on all exchanges (not SMS)
  2. Create dedicated email for crypto only
  3. Use unique passwords for every exchange
  4. Get a hardware wallet if holding >$1,000
  5. Backup seed phrase on paper + metal
  6. Store backups in multiple secure locations
  7. Enable withdrawal whitelist on exchanges
  8. Bookmark official sites — never trust links
  9. Check contract addresses before approving
  10. Review approvals regularly at revoke.cash

In crypto, you are your own bank. Act like it. Security isn't optional — it's everything.

BroBillionaire Editorial Team

We've seen friends lose thousands to scams. We've helped recover some. This guide contains everything we wish we knew from day one.

Continue Your Journey