Step 2: Safety & Security

Do's & Donts of Crypto Wallets

Your seed phase is like your house keys. Do be careful. Don't lose your keys!

Do's

• DO keep your phrase in a safe or safety deposit box protected from physical damage and theft.

• DO use a hardware wallet. A physical device that stores your seed phrase offline, making it much more secure than storing it on a computer or mobile device.

• DO keep multiple copies of your seed phrase in different locations, in case you lose one copy.

• DO keep it separate from other personal information.

Dont's

• DON'T store it on a computer or mobile device. It is susceptible to hacking, malware, and data breaches.

• DON'T share. Sharing your seed phrase with anyone is the key to them accessing your funds. Would you give someone the keys to your home?

• DON'T take a screenshot or photo of your seed phrase, it can be easy copied. If you do need to store it digitally, use a password manager or encrypted file.

• DON'T write your seed phrase on any document that contains your personal information (like your passport or drivers licence).

Hardware Wallets

Recommended as the most secure wallet to hold your ADA.

A hardware wallet is a physical device used for storing and managing cryptocurrency assets offline, providing a secure solution for protecting your funds. Cardano is supported by a range of hardware wallets, including:

Ledger Nano X: https://www.ledger.com

• A popular hardware wallet offering support for multiple cryptocurrencies, including Cardano, with secure storage and easy transactions through a mobile or desktop app.

Trezor Model T: https://trezor.io

• A high-end hardware wallet with a touch screen, providing secure storage and management of Cardano assets, along with multiple other cryptocurrencies.

By using a hardware wallet for Cardano, you can be confident in the security of your assets, as the private keys are stored on the device, rather than on an exchange or a computer that could be vulnerable to hacking or theft. Additionally, hardware wallets typically offer an added layer of security through the use of passwords, biometrics, and other authentication methods.

For maximum security, it is best practice to use a hardware wallet. Here are a few links that will help you set up and use hardware wallets as well as get a better understanding of how they work.

• Store and stake Cardano on a Ledger Nano S - https://www.youtube.com/watch?v=Pp-uvb0NkY0​

• Hardware wallets - https://www.youtube.com/watch?v=ylrLPoTX6yc&t=1s​