Security basics: wallets, exchanges and scams

Custodial vs self-custody

On an exchange, the platform holds your coins for you (custodial). In a self-custody wallet, you control the private keys. Self-custody removes exchange risk but makes you fully responsible — lose the recovery phrase and the funds are gone.

Non-negotiable habits

These habits prevent most losses:

• Never share your seed phrase or private keys with anyone, for any reason.
• Use an authenticator app for two-factor authentication rather than SMS.
• Bookmark the real website of every platform you use and log in only from the bookmark.
• Start with a small test transaction when sending to a new address.

Common scams

Be wary of anyone promising guaranteed returns, fake “support agents” who contact you first, impersonation accounts on social media, and groups that coordinate sudden buying in small coins. Legitimate education never guarantees profits.