Oct 27, 2025
November 2022. FTX collapsed.
I had funds caught on the trade. 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 based mostly on 2022 costs. In the meantime, the crypto I may have held is price 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 Speak About
Quick ahead to October 2025: Trump pardons CZ. A $4.3 billion Binance effective disappears. Everybody celebrates the regulatory reset.
Me? I’m reminded that if political connections can erase a multi-billion greenback penalty, what makes you suppose your funds are secure on any trade?
Binance paid the effective. CZ served 4 months. Now he’s free, and the trade is stronger than ever.
Nice for crypto adoption. Horrible for anybody who thinks “too massive to fail” means “secure 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 at last 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 based mostly on 2022 costs. Bitcoin was $16,600 then. Right this moment? $115,000. That’s a 7x alternative value.
Binance (a number of incidents): Regardless of being the most important trade, they’ve confronted safety challenges together with the 2022 incident that resulted in $570 million affected (later recovered by way of freezing).
And people are simply the large names you’ve heard of. Smaller exchanges? They collapse commonly.
Even when an trade doesn’t get hacked, they will:
• Freeze your account throughout “upkeep” (often if you need to withdraw)
• Go bankrupt and tie your funds up in years of authorized proceedings
• Get regulated out of existence in sure jurisdictions
• Determine 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 fallacious, 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 secure.
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 number of hundred {dollars} on {hardware} wallets and adopted correct safety, these funds would nonetheless be mine – and price 7x extra at this time.
What Really Retains Your Crypto Protected
A {hardware} pockets (additionally referred to as a chilly pockets) is a bodily gadget that shops your personal keys offline.
Consider it like this:
• Scorching pockets (trade, telephone app): Your keys are on-line, related to the web, susceptible 24/7.
• {Hardware} pockets: Your keys by no means contact the web. Hackers can’t entry what isn’t on-line.
Once you need to ship crypto, the transaction will get signed on the gadget itself, then broadcast. Your personal keys by no means depart the {hardware}.
Even when your laptop is contaminated with malware, even should you’re utilizing public WiFi, even when somebody’s watching your display – they will’t steal your keys.
It’s not foolproof. Nothing is. But it surely’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 strategy. 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 totally different producers
Why a number of gadgets:
• Main Ledger Nano X: Important Bitcoin and Ethereum holdings
• Main Trezor Mannequin T: Backup + totally 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 gadgets
• By no means multi functional place
What goes right here:
• Bitcoin and Ethereum long-term holdings
• Any crypto I received’t contact for years
• The vast majority 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 need to continually entry my predominant chilly wallets (safety threat)
• This pockets is for crypto I would transfer in 3–12 months
• Used for staking by way of official pockets apps
What goes right here:
• Crypto I’m staking (incomes 3–17% APY)
• Positions I would commerce inside the yr
• Medium-term holdings
Why this works:
• Can stake straight from {hardware} pockets (by way of Ledger Dwell/Trezor Suite)
• Stability between safety and accessibility
• Staking rewards with out trade threat
Layer 3: Alternate 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 trade guidelines:
• Hold minimal quantities
• Break up between two exchanges (diversification)
• Withdraw instantly after shopping for
• Allow all safety features
Why this strategy:
• I can purchase crypto when alternatives come up
• Earn staking rewards on stablecoins
• If one trade collapses, I don’t lose all the things
The {Hardware} Wallets I Really Belief
I’ve examined each main {hardware} pockets. Some are clunky. Some have horrible interfaces. Listed below 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 telephone) ✅
• Ledger Nano S Plus: USB solely
🔐 Kind Issue
• Ledger: USB gadget with display
• Trezor: USB gadget with touchscreen
• Tangem: Card (like bank card)
• Ledger: USB gadget with display
⭐ My Score
• Ledger Nano X: 9/10 (greatest general)
• Trezor Mannequin T: 9/10 (greatest for chilly storage)
• Tangem Pockets: 7.5/10 (greatest for freshmen)
• Ledger Nano S Plus: 8/10 (greatest worth)
Ledger Nano X – Finest 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 all the things)
• Bluetooth connectivity (you need to use it together with your telephone)
• Ledger Dwell app is intuitive
• Constructed-in battery lasts weeks
• Can stake ETH, ADA, SOL, DOT straight from the gadget
What I don’t like:
• Not absolutely open-source (Ledger’s safety chip is proprietary)
• Barely pricier than price range choices
Who it’s for: Anybody who desires to stake crypto, use DeFi often, or wants cell entry.
Get it right here: [Ledger Official Store]
2. Trezor Mannequin T – Finest for Chilly Storage ($169)
That is what I take advantage of for long-term Bitcoin and Ethereum storage.
What I like:
• Absolutely 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 fame 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 lively 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 – Finest for Freshmen ($50)
A card-based {hardware} pockets that works with NFC (faucet to telephone). Best to make use of, however restricted performance.
What I like:
• Least expensive possibility at $50
• Very simple (simply faucet to telephone)
• 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 (should belief telephone app)
• Can’t stake or use DeFi straight
• Much less safe than gadgets with screens (can’t confirm addresses on gadget)
• Tangem controls some features of key technology
Who it’s for: Full freshmen who need the best doable setup, or as a backup pockets for small quantities.
Get it right here: [Tangem Official Store]
4. Ledger Nano S Plus – Finest Finances Possibility ($79)
Similar safety because the Nano X, fewer options. Good for intermediate customers on a price range.
What I like:
• Half the value of Nano X
• Similar safety chip
• Helps 5,500+ cash
• No battery to fret about
• Bigger display than unique Nano S
What I don’t like:
• No Bluetooth (should plug into laptop)
• Smaller display 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 Really Get?
If you happen to’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.
If you happen to maintain $500-$5,000:
Get Ledger Nano S Plus ($79). Finest worth, full performance.
If you happen to maintain $5,000-$50,000:
Get Ledger Nano X ($149). You want Bluetooth comfort and staking functionality.
If you happen to maintain $50,000+:
Get each Ledger Nano X and Trezor Mannequin T ($318 complete). Break up your holdings throughout totally different producers for optimum safety.
If you’d like most safety for long-term storage:
Get Trezor Mannequin T ($169). Absolutely open-source, no Bluetooth, excellent for chilly storage.
Why I Personal A number of Gadgets of the Similar Mannequin
Right here’s one thing most guides received’t inform you: I don’t simply personal totally different pockets manufacturers – I personal a number of items of the identical mannequin.
My precise setup:
• Two Ledger Nano X gadgets
• Two Trezor Mannequin T gadgets
• One Ledger Nano S Plus
• One Tangem (for small quantities/journey)
Complete: 6 bodily gadgets.
Why Purchase Duplicates?
{Hardware} Failure
{Hardware} wallets can break. Screens die. Buttons fail.
When my main Ledger’s display began glitching, I merely restored my accounts utilizing the identical 24-word phrase on my backup gadget and continued with out lacking a beat.
Geographic Redundancy
I hold gadgets in numerous places:
• Main gadgets: Safe places I entry commonly
• Backup gadgets: Separate places (totally different metropolis/member of the family’s home)
If my home burns down, I lose one gadget. Not all of them.
Firmware Updates
Firmware updates often trigger points.
My rule: By no means replace all gadgets directly.
• Replace main gadget first
• Take a look at for per week
• If steady, replace backup
This fashion, if an replace causes issues, I all the time have a working gadget.
The Value-Profit
Extra value:
• Further Ledger Nano X: $149
• Further Trezor Mannequin T: $169
• Complete: $318 for peace of thoughts
For anybody holding vital crypto, spending an additional $318 on backup gadgets is apparent threat administration.
The Precept of Practical Isolation
Right here’s a safety idea most individuals miss: Don’t use the identical pockets for all the things.
My rule: Storage wallets keep offline. Energetic wallets deal with transactions.
Why This Issues
Think about you’re interacting with a DeFi protocol. You suppose you’re approving a reputable transaction, nevertheless it’s really a phishing assault.
If all of your wallets are related to DeFi:
• Signal malicious transaction on Pockets A → drained
• Test Pockets B → signal related transaction → drained
• Pockets C? Similar sample → drained
If you happen to apply purposeful isolation:
• Storage Pockets: By no means connects to DeFi, by no means indicators good contracts
• Staking Pockets: Solely used by way of official apps (Ledger Dwell, Trezor Suite)
• Energetic Pockets: Used for DeFi, swaps, experiments
End result: 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 gadgets: Bitcoin and Ethereum long-term holdings ONLY
• No DeFi interactions
• No good contract approvals
• Solely receives deposits
• Saved in safe places, not often accessed
Staking Pockets:
• Secondary gadget: Staking ONLY by way of official apps
• Ethereum, Cardano, Polkadot staking
• No exterior DeFi protocols
• No token approvals exterior official apps
Energetic Pockets:
• Tertiary gadget: DeFi, swaps, new protocols
• This pockets interacts with good contracts
• Holds smaller quantities
• If compromised, restricted loss
Journey/Day by day Pockets:
• Tangem card: Small quantities for day by day transactions
• Simple to hold, faucet to telephone
• If misplaced or stolen, minimal loss
Use Totally 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 secure.
The Setup Course of
For Ledger:
1. Unbox, plug in through USB
2. Arrange 8-digit PIN
3. Write down 24-word restoration phrase (CRITICAL)
4. Set up Ledger Dwell app
5. Add Bitcoin/Ethereum accounts
6. Switch small take a look at quantity ($20)
7. Affirm it arrives, then switch the remaining
Complete 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 predominant holdings
Complete time: 20–half-hour
For Tangem:
1. Obtain Tangem app on telephone
2. Faucet card to telephone (NFC)
3. Create pockets (Tangem generates keys on card)
4. Write down backup card entry code
5. Switch small take a look at quantity
6. Confirm it arrives
Complete time: 10–quarter-hour (best setup)
The One Mistake That Will Value You Every thing
Dropping or exposing your 24-word restoration phrase.
That phrase IS your crypto. If somebody will get it, they personal your funds. If you happen to lose it and your gadget breaks, your crypto is gone eternally.
What NOT to do:
• ❌ Don’t take a photograph
• ❌ Don’t retailer it digitally
• ❌ Don’t retailer it together with your {hardware} pockets
• ❌ Don’t inform anybody, ever
What TO do:
• ✅ Write it on the cardboard offered
• ✅ Retailer in a fireproof secure
• ✅ Contemplate a metallic backup (survives fireplace/flood)
• ✅ Retailer backup copy in numerous 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 secure because the individuals working the platform.
Lesson 2: “Too massive to fail” doesn’t exist in crypto
FTX was the second-largest trade. 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 possibly can act when alternatives come up. Full chilly storage sounds secure, nevertheless it’s rigid.
Lesson 5: Self-custody is the endgame
The aim isn’t to keep away from exchanges eternally. It’s to reduce publicity and maximize self-custody for holdings you don’t want to the touch.
My Suggestions Based mostly on Your Holdings
If you happen to maintain lower than $500:
Begin with Tangem Pockets ($50). Easy, low-cost, will get you began with self-custody.
If you happen to maintain $500-$5,000:
Get Ledger Nano S Plus ($79). Finest worth with full performance.
If you happen to maintain $5,000-$50,000:
Get Ledger Nano X ($149) + backup gadget. You want cell entry and redundancy.
If you happen to maintain $50,000-$500,000:
Get Ledger Nano X + Trezor Mannequin T ($318). Break up throughout producers. Add backups of every.
If you happen to maintain $500,000+:
Get a number of gadgets, use purposeful isolation, take into account multi-sig, seek the advice of a safety skilled.
The Actual Value of Not Performing
A Ledger Nano X prices $149.
FTX taught hundreds of individuals this lesson the exhausting means. Common losses? 1000’s per particular person.
So that you’re risking hundreds to avoid wasting $149.
That’s not being frugal. That’s playing with cash you possibly can’t afford to lose.
Right here’s What You Ought to Do Proper Now
If you happen to’re holding crypto on an trade, you’re taking an pointless threat.
For most individuals: Get a Ledger Nano X ($149)
On a decent price range: Get a Tangem Pockets ($50) or Ledger Nano S Plus ($79)
For severe holdings: Get each Ledger Nano X and Trezor Mannequin T ($318 complete)
Set it up this weekend. Switch your funds. Sleep higher.
Not your keys, not your cash. Don’t be taught this the exhausting means.
Transparency Observe
Some hyperlinks on this article are affiliate hyperlinks. If you happen to purchase by way of them, I earn a small fee at no additional value 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 preserving funds on exchanges, or have you ever made the transfer to chilly storage? Drop a remark beneath – I learn each one.
