How to Store Your Cryptocurrencies Safely in 2025

Keeping your crypto safe is on you. Unlike cash in a bank, digital assets don’t come with built-in protection. If you lose access or get hacked, there’s no one to call.

That’s why how you store your cryptocurrencies matters.

We’ve seen this go mainstream fast—over 91 million crypto wallets were downloaded in the first five months of 2024 alone. And this year looks just as strong, maybe stronger.

But here’s the thing: more people getting into crypto doesn’t mean everyone’s doing it right. With no banks or middlemen to back your assets, the storage method you choose can make or break your experience.

Whether you’re just starting out or already holding a few coins, now’s the time to lock in the right setup.

Let’s break down your best options—simple, secure, and made for you.

Table of Contents Table of Contents

Custodial wallets storage
Non-custodial (self-custody) wallets storage
Paper wallets storage
Common mistakes people make when storing their cryptos
How have people lost their stored cryptocurrencies?
Include cryptocurrencies in your will if you choose self-custody wallets
FAQ
References

Table of Contents

Custodial wallets storage
Non-custodial (self-custody) wallets storage
Paper wallets storage

Show Full Guide

Common mistakes people make when storing their cryptos
How have people lost their stored cryptocurrencies?
Include cryptocurrencies in your will if you choose self-custody wallets
FAQ
References

Custodial wallets storage

Custodial wallets are digital wallets where a third party stores the cryptocurrencies on your behalf. Some of the custody wallets also offer insurance against theft or exploits, which offers greater protection for your digital holdings.

How do custodial wallets work?

You sign up with a service provider. The third party holds the wallet’s private keys. You may receive and send cryptocurrencies from the custodial wallet. The private key provides anyone, anywhere in the world, access to your cryptocurrencies.

Since the private key is kept secure by a third party, the risk of unauthorized access to your account is significantly reduced. However, it’s important to be mindful of security and management practices. When considering how best to protect your holdings, learning about best strategies to allocate your crypto can help you decide between using custodial wallets and exploring other storage solutions.

Examples of crypto custody services and wallets

These are some of the trusted custody services for your cryptocurrencies as of 2025.

Coinbase Wallet (Custodial via Exchange) – Ideal for beginners, Coinbase holds your keys and offers top-tier security, ease of use, and direct integration with the exchange.
Binance Custodial Wallet – Lets users store assets on Binance’s platform with multi-layer security and easy trading access across a wide range of tokens.
Kraken Wallet – Combines professional-grade security with institutional custody solutions and smooth integration with its trading platform.
BitGo – Designed for institutions, BitGo offers insured, multi-signature custodial services and regulatory compliance.
Fireblocks – Top choice for enterprises needing secure custody, Fireblocks offers MPC (multi-party computation) wallets and advanced treasury management tools.
Gemini Custody – Regulated in the U.S., Gemini’s custodial wallet is trusted for its compliance, insurance coverage, and cold storage security.
Crypto.com Custodial Wallet – Offers convenience for users in the Crypto.com ecosystem, with insured custody and easy access to DeFi and CeFi tools.
Anchorage Digital – A federally chartered crypto bank offering secure, regulated custodial services for institutions and high-net-worth clients.
Cobo Custody – Asia-focused custodial platform with MPC and HSM (Hardware Security Module) technology, built for Web3 projects and enterprises.
Zodia Custody – Backed by Standard Chartered, Zodia targets institutions with secure crypto custody under traditional finance-grade compliance.

Custodial wallets pros and cons

Pros

Forgot your keys? No problem; the provider can help restore access
Often comes with built-in trading, staking, or fiat on-ramps
Actual humans can help when issues arise
Often tied to exchanges with deep order books hence high liquidity access
Top platforms offer insurance and hardened security setups
Often KYC-verified and regulated, increasing user trust

Cons:

Centralized targets attract high-stakes attackers
Providers can halt withdrawals during high volatility or legal issues
May not support all tokens, especially newer or niche ones
Your identity and transactions may be logged or sold
Requires internet to interact, unlike hardware or cold wallets

Custodial wallet safety tips

Avoid reusing passwords across platforms and use a password manager to generate and store strong credentials.
Limit withdrawals to pre-approved wallet addresses to prevent unauthorized fund transfers.
Log in only through secured, private networks to reduce exposure to man-in-the-middle attacks.
Treat custodial wallets like checking accounts—convenient for transactions, not for long-term holding.
Occasionally withdraw small amounts to a self-custodial wallet to ensure full access to your funds.
Bookmark official sites and verify mobile apps to avoid phishing or fake wallet clones.

Non-custodial (self-custody) wallets storage

Self-custody wallets, called non-custodial wallets, allow you to store and manage your cryptocurrency without depending on a third party. With this type of wallet, you are the only one who holds the private keys.

Many who do not wish for any third party to hold the keys to their wallets would prefer this method. Self-custody wallets are often available as a browser extension, desktop, and/or mobile app.

How do self-custody wallets work?

Self-custody wallets allow you to manage your crypto assets independently. You have the keys to access the wallet, and no one else has them.

Take website hosting as an example. Hosting providers offer you different hosting solutions while providing you with the server. In non-custodial wallets, the private key is your server.

When you create a self-custody wallet, you are given a private key or seed phrase. This key lets you access the wallet and set the password.
Since you are in charge, you must protect your private key. Losing it means losing access to your funds.
Blockchain interaction: These wallets connect directly with the blockchain, letting you send, receive, and store cryptocurrencies securely.

Types of self-custody wallets

A lot has changed since the first-ever crypto wallet, Bitcoin Core, was introduced in 2009. Since then, the crypto wallet landscape has grown rapidly, with many options now available to cater to different user needs.

Hot wallets (Software-Based): MetaMask, Exodus
Cold wallets (Hardware-Based): Ledger, Tangem, and Trezor Models.

Self-custody wallets are great for those who want full control and enhanced security over their cryptocurrency.

Examples of non-crypto custody services and wallets

Excluding options from mainstay brands such as Ledger and Trezor, which are both hardware wallets.

MetaMask – A popular browser and mobile wallet for Ethereum and EVM chains, letting users control their private keys and access DeFi, NFTs, and dApps.
Trust Wallet – A mobile-first wallet supporting multiple blockchains, perfect for managing tokens, NFTs, and staking directly from your phone.
Exodus – A sleek desktop and mobile wallet that supports a wide range of assets and includes built-in swapping and portfolio tracking.
Atomic Wallet – Offers multi-asset support and staking features in a non-custodial setup with encrypted private keys stored locally.
Keystone (formerly Cobo Vault) – An air-gapped hardware wallet with QR-based signing, ideal for high-security setups with no USB or Bluetooth vulnerabilities.
Unstoppable Wallet – A privacy-focused mobile wallet with no user data collection, designed for DeFi power users and multi-chain access.
xDefi Wallet – A browser extension wallet optimized for DeFi and NFTs across Ethereum, Cosmos, Avalanche, and other ecosystems.
Rabby Wallet – Built for Ethereum and EVM chains, Rabby automatically selects the right chain for dApps and flags risky transactions in real-time.

Non-custodial wallets pros and cons

Pros

You control the private keys, so you own the assets
No third party can block or freeze your funds
No KYC or ID checks required to use
Easily access niche, experimental, or early-stage tokens
Connect to decentralized protocols and dApps
Import your wallet into multiple apps or devices

Cons:

Misplace your seed phrase and it’s game over
Steep learning curve for beginners unfamiliar with crypto security
No customer support to rescue lost funds
Harder to convert crypto to cash directly
If compromised, funds are likely gone for good

Non-custodial wallets safety tips

Write your recovery phrase on paper or metal, never store it digitally or in the cloud.
Always double-check wallet addresses before sending funds to prevent address replacement scams.
Only install wallets from official websites or verified app stores to avoid imposters.
Advanced wallets let you add a custom passphrase for extra protection beyond the standard 12 or 24 words.
Always run the latest version to patch vulnerabilities and benefit from new security features.

Paper wallets storage

Paper wallets are a secure and offline method to store cryptocurrency, making them immune to online threats such as hacking. Here’s what you need to know:

What is a Paper Wallet?

A paper wallet is a physical document containing the public and private keys needed to access and manage cryptocurrency.

Paper wallets are created offline using special software, which helps protect the keys from online threats like hacking. The keys are then printed on paper, and the paper is stored safely. This offline nature makes paper wallets a secure method for long-term cryptocurrency storage.

Writer’s note: Brain wallets were an early alternative to paper wallets, where users memorize a passphrase to generate a private key. However, they are now less common due to the risk of forgetting the passphrase or making generation errors.

How does a Paper Wallet work?

You generate the keys offline using special software, often on a device that has never been connected to the internet. For a Bitcoin paper wallet, bitaddress may be used.
Save the file (often in a ZIP file) while offline. Ensure you are still disconnected from the internet and open the index.html file in your browser.

Paper wallet generators may also be available on GitHub for the more tech-savvy.

Examples of non-crypto custody services and wallets

BitAddress.org – A free, open-source paper wallet generator for Bitcoin.
WalletGenerator.net – A versatile, open-source generator that supports a wide variety of cryptocurrencies.
MyEtherWallet (MEW) – A popular choice for creating Ethereum paper wallets, MEW provides a simple, secure offline option for generating private keys.
Bitcoin Paper Wallet – A straightforward paper wallet generator for Bitcoin that offers offline wallet creation with options for QR codes and printed keys.
BitBox02 (Paper Wallet Generator) – A hardware wallet with an integrated paper wallet generator.
PaperWalletGenerator.com – A free and easy-to-use platform that supports multiple cryptocurrencies..
Coinb.in – A secure, open-source tool for creating Bitcoin paper wallets, with an emphasis on privacy and offline key generation.
Armory – A Bitcoin wallet with advanced features for creating offline paper wallets.
Electrum – Known for its lightweight Bitcoin wallet, Electrum allows users to generate paper wallets for Bitcoin.
Liteaddress.org – A paper wallet generator specifically for Litecoin.

Paper Wallets pros and cons

Pros

Fully offline, immune to online hacks
No apps or devices to exploit
Great for HODLing without frequent access
Doesn’t require updates or charging
Doesn’t leak any user data, IP, or device info
Can be disguised or stored in unconventional places

Cons:

Vulnerable to fire, water, fading, or tearing
If lost or destroyed, assets are unrecoverable
Sending funds requires importing into a software wallet
No app or GUI to view balance or history
No passphrases, 2FA, or PINs by default

Paper wallet safety tips

Only store long-term holdings in paper wallets, and use a software wallet for day-to-day transactions.
Keep your paper wallet in a fireproof and waterproof safe to protect it from physical damage or natural disasters
Never store a digital copy or photo of your paper wallet online to prevent hackers from gaining access.
Write your private key with an ultraviolet (UV) pen that is difficult to detect and replicate, adding an extra layer of security.
If you ever need to destroy a paper wallet, ensure it is shredded into small pieces to prevent it from being recovered or stolen.
Create several copies of your paper wallet and store them in different secure locations to ensure redundancy in case of loss.

Common mistakes people make when storing their cryptos

Security MistakesKnowledge & Behavior MistakesExchange-Related MistakesDevice & Software MistakesPhysical Storage MistakesPlanning Mistakes

Security Mistakes

Security is the frontline of crypto protection, and most major losses stem from preventable errors here. A common misstep is using weak or reused passwords, which makes brute-force attacks easier and gives hackers an advantage if your credentials are leaked elsewhere. Another frequent error is failing to enable two-factor authentication (2FA), leaving your wallet or exchange account vulnerable to simple login attacks. Many users also fall into the trap of clicking on phishing links or fake websites, especially those mimicking exchanges or wallets. Lastly, storing private keys or seed phrases online, whether in cloud storage, note apps, or email drafts, exposes them to malware and breaches.

Knowledge & Behavior Mistakes

Lack of understanding often leads to unintentional self-sabotage. For example, many users misunderstand how wallets or seed phrases work, believing the app itself holds the funds rather than accessing them through private keys. Equally damaging is sharing recovery phrases with others, whether out of trust or confusion, which grants full control of your crypto to another person. A frequent behavioral mistake is blindly trusting influencers or social media “experts”, which often leads to scams or shady projects. Lastly, forgetting or misplacing recovery phrases is more common than people admit, and without that phrase, access to funds is permanently lost.

Exchange-Related Mistakes

Exchanges are convenient, but not built for long-term storage. One of the worst habits is leaving large amounts of crypto on exchanges, especially during uncertain market or regulatory times. Another frequent issue is not verifying withdrawal addresses, which is dangerous when clipboard-hijacking malware can silently replace your intended address. Users often assume their exchange account is insured, when in fact, many platforms offer limited protection—or none at all—in the case of hacks. Lastly, trusting exchanges without researching their reputation or proof-of-reserves opens users up to potential insolvency risks, as seen in past collapses like FTX.

Device & Software Mistakes

Your device is often the weakest link in your crypto security chain. Many people store crypto wallets on compromised or outdated devices, where malware can easily exfiltrate data. Others skip routine protection steps like installing antivirus or anti-malware software, allowing silent infections to persist. A particularly dangerous habit is granting excessive permissions to third-party apps or browser extensions, which can scrape sensitive data or interfere with clipboard activity. Lastly, failing to encrypt wallet files or drives means that if your device is lost or stolen, any unencrypted wallet could be accessed directly.

Physical Storage Mistakes

Physical backups are only as secure as how and where they’re stored. A rookie mistake is hiding seed phrases in obvious places—under the keyboard, taped behind a monitor, or written on a sticky note in a drawer. Even worse is having only one copy of the seed phrase, which could be destroyed in a fire, flood, or accidental disposal. Many users also fail to test their metal seed backups, not realizing that some cheap plates corrode, wear out, or don’t survive impact. Another oversight is storing hardware wallets in unsafe environments, such as hot vehicles or moist basements, which can cause irreversible device damage.

Planning Mistakes

Long-term crypto storage demands foresight and structure. One critical failure is not making an inheritance or emergency access plan, which risks leaving funds inaccessible if something happens to the holder. People also commonly forget to label seed phrases or link them to specific wallets, which creates confusion and delays when trying to recover accounts. Another oversight is rushing into complex DeFi tools or multi-sig wallets without fully understanding them, which increases the chance of mismanaging funds. Finally, not doing a test transfer before sending large sums often leads to costly mistakes, whether from selecting the wrong network or address.

How have people lost their stored cryptocurrencies?

Over 22% of all Bitcoin, approximately 4.2 million BTC, is considered lost. This includes coins locked away in wallets with forgotten credentials or lost private keys. The tragic part is that better storage practices could have prevented many of these losses.

One high-profile example is Stefan Thomas, a German programmer, lost access to 7,002 BTC, worth over $700 million, after misplacing the password to his encrypted USB drive. Similarly, James Howells, a British IT worker, threw away a hard drive with 8,000 BTC in 2013 and has been unable to recover it, despite offering a reward.

Poor cryptocurrency storage can lead to significant losses, with recovery rarely possible and often requiring expert assistance and luck—though it’s usually impossible.

Include cryptocurrencies in your will if you choose self-custody wallets

Without proper planning, your digital assets could be lost, as seen in the QuadrigaCX incident in 2019. After CEO Gerald Cotten’s death, users lost 26,350 BTC worth over $2.6 billion because Cotten held the private keys alone. This highlights the importance of planning for crypto after death.

To ensure your cryptocurrency is accessible after death, securely store your private keys and recovery phrases and share access with trusted individuals. Include instructions for wallet access in your estate plan and consult an estate planner with cryptocurrency expertise to ensure proper legal arrangements.

Some exchanges, like Coinbase, allow you to access a deceased family member’s account if you provide certain documents, like a death certificate and the will. But it’s always best to plan ahead.